New Delhi: India will make small civilian passenger aircraft as part of measures approved by a panel led by Prime Minister Manmohan Singh to boost domestic manufacturing.
The plan includes increasing steel production capacity to 300 million tonnes, a 30% increase in textile exports, and domestic manufacturing capabilities in advanced materials, alloys and composites.
"If we have to grow at 8-9% in the future, this has to come through sustained growth in manufacturing, particularly labour-intensive manufacturing," the prime minister said at the meeting of the high-level committee on manufacturing. "Manufacturing and manufacturing alone can absorb all those who need better livelihood opportunities."
Nine central ministries took part in the deliberations. The additional 300 million tonnes of steel capacity will by the Central Public Sector Enterprises in collaboration with the states. India produced about 77 million tonnes of steel last year from 89 million tonnes capacity. Higher exports, apart from boosting domestic economy and generating employment, will also help trim the current account deficit which touched a record high 4.8% of GDP last fiscal.
Manufacturing growth slipped to 1% last financial year and shows no signs of pick up yet.
India has done well in automobiles, auto-components, pharmaceuticals, metals and cement, but has "not been able to leverage its strengths both in traditional industries and in emerging sectors to the extent we could have", the prime minister said, according to a statement issued by his office.
The prime minister flagged electronics and telecommunications where India does not have much manufacturing capabilities and whatever limited production was confined to lower end items.
"Our exports consist of raw materials and primary goods and our imports consist overwhelmingly of manufacturing.
We need to remedy this situation by removing the bottlenecks that hinder our progress in manufacturing and taking full advantage of our strengths," Singh said.
Steel ministry will come out with time-bound action plans in eight weeks to implement the decisions.
An inter-ministerial group under textiles secretary will prepare in four weeks a plan to boost textiles exports. Other groups will take forward decision on electric and hybrid transport, civilian aircraft production and advanced materials.
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