Highlighting the importance of manufacturing sector, Shri Sharma stated: “An economy of our size and scope cannot ignore the manufacturing sector. A modern manufacturing sector is essential for the development of our economy and, in particular, our technological base. The share of manufacturing in national income has shown only a marginal improvement from 15.8% in 1991 to 16% currently. This should be somewhere in the range of 25% to 35%. This requires manufacturing sector to keep growing in double digits in the next decade”,    The Minister added that manufacturing will be the engine of growth to absorb people who need to move out of agriculture in pursuit of higher incomes. Besides the employment imperative, the development of the manufacturing sector is critical from the point of view of ensuring that the growth model of India is sustainable. 
As regards the manufacturing policy, the Minister informed the Members: “We are working on launching a National Manufacturing Policy by the end of this year and we have already circulated a discussion paper, inviting comments from all stakeholders in this regard.  We also intend to establish National Manufacturing and Investment Zones (NMIZs) to push the manufacturing share in our GDP. The proposed National Manufacturing Policy for these NMIZs would act as the key enablers in driving the growth of the sector in India. Main objectives of NMIZs are:  (i) To promote investments in the manufacturing sector and make the country a hub for both domestic and international markets; (ii) To increase the sectoral share of manufacturing in GDP to 25% by 2022. (iii) To double the current employment level in the sector; and (iv) To enhance global competitiveness of the sector”.

Speaking on the impact of the global economic crisis, Shri Sharma said that the manufacturing industries were particularly affected as a result of the general slowdown in the second half of 2008-09 and added that the growth of industries with higher export intensity, such as textiles handicrafts, leather, gems & jewellery and auto components were particularly hit.  He further stated that to counter the adverse fall out of the global slowdown on the Indian economy, appropriate fiscal and monetary policies were initiated.  The total size of the fiscal stimulus package was estimated at 3.5% of GDP in 2008-09 and amounted to Rs.186,000 crore.    He said that the stimulus measures were aimed to moderate both the demand and supply side constraints facing the economy and in particular the industry. On demand side, Government reduced excise duty rates by 6% in two phases and the service tax by 2%.   “As a combined impact of various fiscal stimulus measures and the supporting monetary policy the industrial sector was able to reverse the declining trend in its growth since June 2009. Industrial growth continued to become strong and broad based and was particularly buoyant in emerging segments”, he added.

Mumbai: The number of carbon credits issued for emission reduction projects in India is set to triple over the next three years to 246 million by December 2012 from 72 million in November 2009, according to a CRISIL Research study. This will cement India's second position in the global carbon credits market (technically called Certified Emission Reduction units or CERs). The growth in CER issuance will be driven by capacity additions in the renewable energy sector and by the eligibility of more renewable energy projects to issue CERs. Consequently, the share of renewable energy projects in Indian CERs will increase to 31 per cent. CRISIL Research expects India's renewable energy capacity to increase to 20,000 MW by December 2012, from the current 15,542 MW.

According to Mr. Nagarajan Narasimhan, Director, CRISIL Research, "We expect the government's focus on renewable energy power projects to drive this growth. Distribution utilities already have to meet 5% of their power requirements from renewable sources, and this proportion will increase to 15% by 2020, leading to a growth in installed capacity. As more of these projects register with UN Framework Convention on Climate Change (UNFCCC), CER issuance volumes will increase."

The current share of renewable energy projects in CERs is just 19 per cent; only 284 of the 1846 renewable power projects in India are registered with UNFCCC. CRISIL Research believes that CER issuance, purely from registration of existing and new renewable energy projects,will increase to 76 million by December 2012, from 14 million in November 2009. Assuming a price of Euro 10 for one CER, additional issuances of CERs from renewable energy projects will be worth about Rs 40 billion by December 2012.