Govt aligns manufacturing policy Make in India
After completing three years in office, the government is all set to overhaul the country’s manufacturing policy to align it with initiatives like ‘Make in India’.
The last national manufacturing policy (NMP) was prepared in 2011 with the objective of raising its contribution to 25 per cent in India’s GDP by 2022. Currently, the sector contributes 16-17 per cent to India’s economic growth.
Commerce and industry minister Nirmala Sitharaman has said that she wants to align the new manufacturing policy with Industrial Revolution 4.0, which refers to high-end automation. “Yes, we have initiated the process (to revamp the policy). I have instructed the secretary in the Department of Industrial Policy and Promotion (DIPP) to get into the details of that,” according to a PTI report quoting Sitharaman.
The 2011 policy, which the minister termed as vintage, talked about tax and other benefits to boost the sector’s growth besides creating 10 crore additional jobs.
Industrial revolution 4.0 encompasses use of robotics, artificial intelligence, Internet of Things, data analytics and automation.
“Into this debate, the Industrial Revolution 4.0 is rapidly catching up. You like it or not, some industries are bringing in robotics in a very big way; some partly using that and some others absolutely have no impact of this because they can not afford or they do not want it. But we have to have a place for all the three,” she said.
Initiatives like ‘Make in India’, ‘Digital India’ and ‘Skill India’ are aimed at making the country a manufacturing hub and they ought to find a place in the national manufacturing policy, many experts have said. “There should be some coherence. So I have asked them (DIPP) that in the context of three years of Make in India, get all these (initiatives) coming into this narrative,” she said, adding that the policy should be relevant.
She also said it is necessary to modify the policy as in the last three years, the government has taken a host of initiatives and significantly relaxed the foreign investment policy.
The revamped policy, she said, is also necessary as the government has to protect the interest of all segments of industry whether it is highly or partly automated and SMEs which are yet to adopt modern technologies.