Concerted development of the domestic farm and manufacturing sectors is central to India's strategies to attain double-digit GDP growth in the near term.
Highlighting this, Prime Minister Manmohan Singh said at the inaugural session of the CII National Conference & Annual Session 2006 on 'Sustaining Competitiveness: Fostering Development' organised in New Delhi on Tuesday that the government will create the pre-requisites for the manufacturing sector to attain at least 12 per cent annual growth.
The prime minister said the manufacturing sector holds the key to acceleration of employment generation and national income and output growth but reminded the gathering that the growth must come not just from the large-scale industries but also from the small, medium and rural enterprises.
To fast-track the process, the prime minister said the government has constituted a high-level committee on manufacturing that will both make recommendations as well as review the implementation of policies formulated under the National Manufacturing Initiative.
Further, he said the government has also constituted a task force to focus on the growth of electronics and IT hardware manufacture. Also, "to maintain the vibrancy of the telecom sector, I have set up a group of ministers to enable early vacation of spectrum by existing government users," he said.
The prime minister said his government will seek to build in greater flexibility in the national labour laws and urged industry to suggest new ideas in this regard and also help build a national consensus on labour reforms.
Focussing on the pre-conditions for farm sector growth, he emphasised the need to promote land reforms. "Land reforms is a state subject but a national priority that requires a national consensus," he said, adding that "redistribution of land and tenancy reform could improve the income and asset base for the rural poor. It could generate demand for rural housing and other infrastructure."
The prime minister cited the industrialisation experiences of economies, such as, Japan and China, to underscore the importance of agrarian reforms and security of tenure in sustaining higher rates of industrial growth.
"The highly visible correlation between agricultural development and the market for manufactured goods tells us that in agrarian prosperity lies the route to industrial development," he said.
The prime minister said: "The time has come to squarely address the issue of development, displacement and environment."
He underscored the need to evolve credible mechanisms so that development is "most cost-effective, environment friendly and least disruptive manner."
Manmohan Singh drew attention to the need for higher investments to build social and economic infrastructure and urged industry to "seriously consider enhancing educational and employment opportunities for weaker sections, investing in their skill development and promoting their employment in an affirmative manner."
Earlier, CII president Yogi C Deveshwar, in his welcome address, said that CII's focus on sustainable competitiveness has become the basis of a variety of private-public partnerships in the country. He said that effective skills development, preservation of natural capital and private participation in rural economic development hyphenate CII's efforts to promote sustainable competitiveness.
Deveshwar referred to this year's Sustainable Awards, instituted by the CII-ITC Centre for Excellence, as an example of industry's keen focus on sustainable competitiveness.
Reflecting on the conference theme, Brijmohan Lall Munjal, past president, CII, and chairman, Hero Honda Motors Ltd, said the government needs to not only improve physical infrastructure but also price it appropriately.
R Seshasayee, vice president, CII, and managing director, Ashok Leyland Ltd, in his concluding remarks, said that industry is increasingly focusing on innovation, development of new products and creation of intellectual properties.
Citing CII's focus on social development, he said a taskforce set up under J J Irani is developing the action points for education, skills development, employment generation and other social development issues. The report is likely to be released in "eight weeks from now," he told the gathering.
The prime minister also gave away Exemplary Awards to three outstanding women achievers in the areas of primary education and literacy, health and micro-finance.
The annual awards, instituted by CII and Bharti Enterprises last year, were given to Sangeeta Pardhe from Pune for her providing healthcare to nearly a thousand women, girls and infants, Raj Rani of Gurgaon for addressing women's needs on reproductive health issues of around thousand women, and to Vanita Jalindar Pise of Satara for her innovative efforts in involving women in the production and sale of paper cups, a project that provides them with stable income.
The prime minister also inaugurated a Web site 'Art-n-East' that will promote the skills of the North-East artisans.
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