Task force to draw blueprint to boost manufacturing sector

Task force to draw blueprint to boost manufacturing sector

Panel comprises industry leaders, heads of trade bodies

Task force to draw blueprint to boost manufacturing sector

The State government has constituted a high-level task force to suggest measures for improving the contribution of manufacturing sector to at least 25 per cent of the Gross State Domestic Product (GSDP) in the coming years. 

The move comes in the wake of the State’s manufacturing sector clocking a below national average share of 14.26 per cent of the GDP (as per the Economic Survey of Karnataka 2012-13) compared to the All India figures of 15.6 per cent for the same fiscal.

The task force is headed by former managing director of Bosch V K Viswanathan and has representatives from spectrum of industries and industrial associations.  Incidentally, this is the first task force to be constituted by the Congress government after coming to power.

The government’s move comes close on the heels of the Centre announcing a ‘National Manufacturing Policy’ with the objective of enhancing the  sectoral share of manufacturing in GDP to 25 per cent besides creating 100 million jobs among others in the next 10 years.

According to the Economic Survey of Karnataka 2012-13, the sectoral contribution of the registered manufacturing sector is 10.79 per cent, while that of the unregistered manufacturing sectors 3.47 per cent of the GSDP.

This is considered below par for a State considered to be one of the forward economies in the country. For instance, the share of manufacturing sector in the GSDP of Gujarat is 40 per cent.

“There is lot of scope for improvement. The task force has already started working informally. The first meeting of the panel will be held next week. The task force will cover the entire range of industries from the micro, small and medium industries to the largescale ones. The panel will come out with a blueprint on the measures for improving the manufacturing sector in each of these segments,” Industries and Commerce principal secretary M N Vidyashankar told Deccan Herald.

Vidyashankar said the task force will also come out with the region-specific recommendations with a thrust on focus areas.


Other members include Vikram Kirloskar of Toyota; Philip Divri, managing director, Volvo; F R Singvi, managing director, Sansera India Pvt Ltd; Nirmala Shapoorkar, unit head, Nestle India, Nanjangud, Mysore district; Rajendra Hinduja of Gokaldas Exports, Ajay Nanavati, chairman, 3M Ltd, Mohandas Pai of Manipal Group, Narendra Pani of National Institute of Advanced Studies, besides the presidents of Confederation of Indian Industry (CII), Federation of Karnataka Chamber of Commerce and Industry (FKCCI), Bangalore Chamber of Industry and Commerce (BCIC) and director of Central Manufacturing and Technology Institute, Bangalore. The Commissioner for Industrial Development will be the member secretary of the task force. The State has 10,722 registered factories and 8.61 lakh unorganised manufacturing enterprises employing more than 25 lakh people.

FKCCI president K Shiva Shanmugam, who is also a member of the task force, felt the State government should set up industrial estates in tier-II cities including Hubli, Belgaum and Davangere, give land on lease for micro, small and medium enterprises and provide subsidies on bank loans availed by entrepreneurs to give a fillip to the manufacturing sector in the state.