Wednesday, July 8, 2015

12th Five Year Plan - India - Manufacturing Sector Plans and Initiatives

12th Five Year Allocations

Outlay for 12th Plan



30 August

Focus on manufacturing sector - Arun Maira

5 August
Question on Manufacturing answered on 5 August in parliament

March 2013
India may become 5th largest manufacturing nation (presently 9th) - BCG
It requires productivity improvement to increase share of manufacturing to 25% of GDP.

Guidelines for establishing National Investment and Manufacturing Zones in India - DIPP

12 Plan Small presentation - Measurable indicators.

27 December 2012
NDC approved the strategy to achieve average growth rate of 8 per cent during the 12th Five Year Plan (2012-17) which will generate 50 million new jobs.  Growth rates expected of 5.8 per cent 2012-13 and little over 7 per cent (2013-2014). The growth  in the remaining three more years will make it cumulative  8 per cent per annum. The voluminous document, containing detailed policy strategy for the 12th Plan, was approved.

The  aggregate Plan resources required is  Rs 37.16 lakh crore during the five year period starting 2012-13.

The Planning Commission provided  three different economic scenarios for 12th Five-Year Plan.As per the "aspirational" scenario one -- of strong inclusive growth -- India's economic growth will be average 8 per cent in the five years. It also presented a scenario of "policy logjam", in which the GDP growth could slow down to 5-5.5 per cent.

Presentation by Mr Arun Maira, Member- Planning Commission of India on Strategies for Accelerating Growth of Manufacturing in India in the 12th Five Year and Beyond at the Inaugural Session of 3rd edition TN Manufacturing Summit “Sustaining Manufacturing Excellence in Tamil Nadu”.

Planning Commission of India is appointing various groups and holding various meetings to develop the background for planning the projects to support manufacturing sector of India in 12th Fiver year plan.

The government has set up ten working groups headed by industry captains and senior bureaucrats to implement the ambitious plan for increasing the share of manufacturing in GDP to 25% by 2025.

The working groups are part of Planning commission's steering group on manufacturing headed by Arun Maira, Member Planning Commission.

Business -Government Relationship - Arun Maira
Clusters and Zones                        -  R.P.Singh
Export-oriented Policies                 -   Rahul Khullar
Green Mechanism                         -  Jamshed Godrej
Human Resources                        -   R.C. Bharagava
Land and Water                            -   B. Muthuraman
National Mfg. and Investment zones-  R.P. Singh
MSME Policies                            -   Uday Kumar Varma
Public Sector Enterprises              -  S.K. Roongta
Technology                                  -   Arun Maira

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13 April 2011
Steering committe of Industry held its first meeting under the chairmanship of Shri Arun Maira on 13.4.2011.
(  Summary record of the meeting   )

Regarding human resources the following issues were highlighted.

HRD & Skill Resources for Indian Manufacturing
- Lack of talent and non-availability of quality manpower of requisite skill had greatly crippled the domestic manufacturing. One of the major factors for this has been acontinuous drift of quality manpower towards the service sectors with lucrative emoluments like IT, financial services etc. The same should be viewed as low value addition by highly-skilled work force. It would be essential to bring back the attractiveness of the domestic manufacturing sector so as to retain talent and technical manpower.

- The overarching issue of talent crunch in domestic manufacturing could be resolved by some incentivization.

- For a vibrant manufacturing sector, the country should make a concerted effort to have alarge pool of efficient manufacturing managers in place of mere technical personnel withtraditional skill sets.

- Labour productivity is important implement for manufacturing sector to combat fierce competition. On this count, reasons for its wide-scale variance from one state to anotherstate need to be gone into and prescribe appropriate measures to have a uniform and efficient labour productivity regime all over the country.

31 May 2011

Steering committee of Industry held its second meeting under the chairmanship of Shri Arun Maira on 31.5.2011.
( Summary record of the meeting   )

Mr. Olivier Scalabre, a partner in BCG  gave a presentation to the group on manufacturing in China in the meeting.

Development of Technology: China emphasizes technology absorption and pays special attention to this aspect. Import items are localized with technology transfer agreemnt in a short time frame. The transfer of technology is being hastened and now it is being done shorter time frames, within 5 years. China also invests heavily on Research and Development (R&D) that helps in absorption of technology and it  has also reduced China's dependence on import of technology from western countries.

Manufacturing plans for 12th plan and beyond

The National Manufacturing Policy

was introduced in 2011, states these objectives and these are the underlying objectives that the
Plan aims to achieve as well. These objectives are:
I. Increase manufacturing sector growth to 12-14% over the medium term to make it the
engine of growth for the economy. The 2 to 4 % differential over the medium term
growth rate of the overall economy will enable manufacturing to contribute at least 25%
of the National GDP by 2025.
II. Increase the rate of job creation in manufacturing to create 100 million additional jobs
by 2025. Emphasis should be given to creation of appropriate skill sets among the rural
migrant and urban poor to make growth inclusive.
III. Increase ‘depth’ in manufacturing, with focus on the level of domestic value addition, to
address the national strategic requirements.
IV. Enhance global competitiveness of Indian manufacturing through appropriate policy
V. Ensure sustainability of growth, particularly with regard to the environment.


Interview and views of Shri Arun Maira, Member Planning Commission on NDTV on 23 March 2010
7.16 minutes


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