New Delhi: The government will unveil a new policy in five months to encourage investment in the manufacturing sector and increase its share in India’s gross domestic product, commerce and industry minister Anand Sharma said on Wednesday.
Encouraging investment: Commerce minister Anand Sharma. A taskforce for this will be set up in partnership with industry groups. Pradeep Gaur / Mint
“We are working on a national manufacturing policy. By June this year, the draft of the policy will be ready. By August, the policy will be in place,” Sharma said while addressing the Confederation of Indian Industry’s national council.
He further said a taskforce to this effect will be set up in partnership with industry groups and the National Manufacturing Competitiveness Council.
He also said the government was working on a policy framework for dedicated manufacturing and investment zones.
“We will have a policy for it in line with the special economic zone policy. Permissions for investment within such zones will be approved within two weeks. We want such zones to be the incubators for new technology” he said.
Asked whether the tax sops for export-oriented units (EoUs) will continue even after 31 March 2011, Sharma said “This is a view that has to be taken by the finance minister. My recommendation will be yes.”
Finance minister Pranab Mukherjee was silent on this issue in his Budget speech, indicating that the tax sops for EoUs and software technology parks of India may end after the next fiscal year.
Sharma also said he would take up with the finance minister the matter of extending the interest subvention scheme to some of the labour intensive sectors like leather that are yet to recover from the impact of the economic slowdown.
The government has extended the interest subsidy of 2% till 31 March, 2011 for export sectors covering handicrafts, carpets, handlooms and small and medium enterprises.