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Now an index to gauge manufacturing competitiveness

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  • In An effort to maintain manufacturing sector’s contribution to gross domestic product (GDP) at 15.5 per cent, the government is planning to set up a Manufacturing Competitiveness Index. An expert cell to review intellectual property issues is also in the offing.

    The National Manufacturing Competitiveness Council has made these recommendations to the Union ministry of commerce and industry. ‘Estimates of investments in the manufacturing sector have shown remarkable increase from Rs 2 lakh crore in June 2004 to Rs 12.7 lakh crore in the quarter ended March 2007,’ the report states, adding that exports as of April-May this year have increased 20.37 per cent as compared to the same period last year.

    The Council has also charted its future agenda. “Support to manufacturers for issues such as patent realisation will depend on a case-to-case basis, depending on the recommendation of an expert cell,” said Surinder Kapoor, member of the Council.

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    The expert cell is to be under an Apex Level Working Group, which implies that for the first time in the country, intellectual property issues will be studied individually under a centralised group, an objective which begun with India’s ratification of the WTO in 1995.

    ‘Assistance to manufacturers will be on the basis of parameters including its future benefit and commercial aspects,’ the report says, while also suggesting creating awareness drives and ‘greater participation of state governments, patent offices and industry associations.’

    The Council is also carrying out Manufacturing Competitiveness Index studies to ‘assess the competitive strengths of specific industries or regions, to form policy guidelines.’ ‘For augmenting competitiveness at the states’ level, it is important to evolve an MCI exploring various aspects to revitalise their industrial sector,’ says the report.

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