The Parliament’s Standing Committee on Commerce has questioned the country’s low manufacturing growth despite initiatives such as Make In India, Startup India and FDI reforms that are now more than two years old.
The committee, led by BJP MP Bhupender Yadav, had expressed concerns about manufacturing growth averaging just 1.6% in the five years till 2015-16 and a 0.5% contraction in the sector in the first 9 months of FY17, in a report tabled in Parliament this March.
In an action taken report tabled in Parliament on Wednesday, the department of industrial policy and promotion (DIPP), under the ministry of commerce and industry, has listed out the several measures taken by the government to promote manufacturing and ease the business environment.
“Make in India initiative aims to make India a hub for manufacturing, design and innovation… Startup India initiative aims to build a strong ecosystem for nurturing innovation to drive sustainable economic growth and generate large scale employment opportunities,” the DIPP has said.
It further listed out various FDI policy changes to make India a investor-friendly destination, along with the focus on sprucing up physical infrastructure and easing the process of obtaining clearances for businesses.
While expressing appreciation for the measures enumerated by the government, the Committee stressed: “However, it will serve better to remember that most of these initiatives are now more than two years old and the manufacturing growth has not yet gone to the desired level.”
Urging the department to take effective steps to implement initiatives such as Make in India in a ‘more robust manner’, the committee has said all obstacles to the ‘optimal implementation’ of such programs must be removed in a time-bound manner.