Need exports to grow at 25% for 15-16% mfg growth: DIPP

Kant says for India’s GDP to grow at a sustainable 8-9 percent, it is imperative that the manufacturing sector grows.

On the Reserve Bank’s interest rate stance, he says that RBI governor Raghuram Rajan is best equipped to take a call on interest rates.

Below is the transcript of Amitabh Kant’s interview with Rituparna Bhuyan on CNBC-TV18.Q: What were the top demands that these 18 sectors made as far as Make in India is concerned? A: There were 25 sectors, there were 18 concurrent sessions and presentations were made by 23 secretaries before the Prime Minister. These cut across various sectors, all the sectors had different concerns. What the secretaries presented before the Prime Minister and the Cabinet was what they have done in the last six months, what is their short-term plan that is for the next one year and what is their medium-term plan for the next three years. These are specific action plans cutting across ministries and this is the first time that the entire Cabinet, all the bureaucracy, the private sector have discussed, debated these action plans. These discussions were on for the last 10 days but yesterday they culminated in this workshop. A specific plan of action sector wise has been laid down and this is what will be implemented and monitored now. Q: Can you give us a sense of some of these action plans that have been drawn up and what the industry wanted, some top issues if you can just share with us and give us sense of what they wanted and what you are going to do? A: I think there were a wide range of issues. These were issues relating to infrastructure, these were issues relating to land, there were issues relating to tax in terms of inverted duty structures, there were issues relating to consistency and predictability of the tax policies. There were wide range of issues relating to ease of doing business and clearances on ground and there were two concurrent sessions on ease of doing business in which all the chief secretaries were present and they participated very actively. So, a very wide range of issues came from the private sector on what kind of problems they are facing at the ground level. There was a vast range of issues relating to the ministry of environment for instance and Secretary Environment responded to all these issues. He has carried out several structural changes, he has made some very far reaching changes and he is convinced that we need to ensure that manufacturing is given a major impetus but manufacturing in a very sustainable manner is provided full thrust and these were the issues broadly that were discussed. However, more than that I think each sector has laid down a clear plan of action from capital goods sector to textiles, to leather to gems and jewellery. A lot of focus has been laid on labour intensive sectors –textiles, leather, gems and jewellery and I think the intention really on our side is that while we need to drive manufacturing we also need to drive labour intensive manufacturing in the Indian context.Q: We have been seeing so many plans within the government but hardly any of them either get implemented or they have impact. What is the difference when it comes to Make in India, the kind of action plans that have been drawn up, how is it different, will they be monitored, will they be implemented in the way it was discussed yesterday? A: Have you ever seen an exercise in India where all the secretaries sit together, where there is this level of convergence and integration? Have you ever seen an exercise where all these plans are presented before the entire cabinet in front of the entire Vigyan Bhavan? I think what has happened yesterday is that as the Finance Minister said is that the country needs a shared vision, a shared vision for manufacturing. Manufacturing is not easy; we made India a very complex, very difficult place to do business. We need to make this a very easy place to do business. Manufacturing once it starts growing, this is the only sector which can enable India to grow at high rates of growth of 9-10 percent per annum on a sustained basis over a long period. No country in the world, post World War II has ever grown without manufacturing. If manufacturing on sustained basis is needed then everyone – the government, the judiciary, the tribunals, the bureaucracy, the private sector, all of us have to have a shared vision of driving India’s growth on a very determined basis to drive manufacturing.