Transcript National Manufacturing Competitiveness Council

National Manufacturing Competitiveness
Council
NMCC
National Manufacturing Competitiveness Council
Government of India
Set Up
• Set up, on 6th October, 2004, by UPA
Government as a high level Autonomous Body
similar to Administrative Reforms Commission,
National
Farmers
Commission,
National
Knowledge
Commission
and
National
Commission on Enterprise in the Unorganized
sector.
• Serves as a Policy Forum for credible and
coherent policy initiatives in the manufacturing
sector.
• Helps to energise and sustain manufacturing
sector .
Composition
• Chairman – Dr. V. Krishnamurthy, Eminent
Expert in Manufacturing, of the Rank of
Cabinet Minister
• Mr. V. Govindarajan, Member Secretary
• 25 members from Government, Industry and
Academia
Members of the NMCC
I
Dr. V. Krishnamurthy, Chairman
(b)
Economists
II
Mr. V. Govindarajan, Member Secretary
14
Dr. Bibek Debroy
III
Ex-Officio Members
15
Dr. IsherJudge Ahluwalia , Director & Chief Executive, ICRIER
(a)
Government of India
(c)
Representatives of various industrial sectors
3
Member-Industry, Planning Commission.
16
Mr. Ratan Tata, Chairman, Tata Sons
5
Secretary/ Finance
17
Mr. Venu Srinivasan, CMD, TVS Motor
4
Secretary/ Dept. of Industrial Policy & Planning
18
Mr. Mukul Kasliwal, Chairman, S Kumars Group
6
Secretary/ Heavy Industries & Public
Enterprises
19
Mr. AM Naik, CMD, L&T
7
Secretary/ Small Scale Industries
20
Mr. YC Deveshwar, CMD, ITC
8
Director General, Council of Scientific and
Industrial Research
21
Mr. Jamshyd N. Godrej, MD, Godrej & Boyce Mfg.Co.
(b)
Apex Industrial Organizations
22
Mr. Baba N. Kalyani, CMD, Bharat Forge Ltd.
9
President-FICCI
23
Mr. Suresh Neotia, CMD, Gujrat Ambuja Cements Ltd.
10
President-CII
24
Mr. Habil Khorakiwala, CMD, Wockhardt
11
President-ASSOCHAM
25
Dr. Surinder Kapur, CMD, Sona Koya Steering Systems Ltd.
IV
Professional & Expert Members
26
Ms. Uma Reddy, Chief Executive, Hitech Magnetics
(a)
Management & Technical Institutions
12
Dr. Shekhar Chaudhuri, Director, IIM, Kolkata
13
Prof. M S Ananth, Director, IIT, Chennai
Functions
• Advises the Government on initiatives for
enhancing competitiveness of the industry.
• Advises the Ministry of Commerce and Ministry
of Finance on Budget formulation.
• Functions as Secretariat to the High Level
Committee on Manufacturing chaired by the
Prime Minister
• Functions as the main Secretariat of the
Empowered Sub-Committee of the HLCM under
the Chairmanship of Chairman, NMCC to
facilitate functioning of HLCM.
Responsibilities of the HLCM
•
Suggest and review implementation of the National Manufacturing Initiative as
may be adopted by government for achieving a sustained growth of 12% in
manufacturing.
•
Create a policy framework for encouragement and necessary reforms of the
manufacturing sector covering all the aspects of manufacturing
competitiveness.
•
Address macro-economic issues impinging on the growth and competitiveness
of the manufacturing sector.
•
Ensuring coordination of the policy functions of the various Ministries which
deal with manufacturing sub-sectors directly or support growth and
competitiveness of manufacturing indirectly to achieve the objective of a 12%
growth
•
Review the implementation of the time-bound action plans of various subsectors in the manufacturing sector for achieving the desired growth rates;
•
Encourage break through idea/thrusts in the manufacturing sector taking an
economy-wide integrated view;
•
Review for coordinating effectively the cluster approach being followed by
different Ministries such as Textiles, Industrial policy & Promotion, Rural &
Village Industry, Food Processing, Urban Development etc.;
•
To monitor the National Manufacturing Competitiveness Programme (NMCP) as
may be designed to improve the firm level competitiveness of Indian firms
including the SMEs;
•
Promote evaluation/monitoring/research reports/studies as required; and
•
To give advice on any other issues relating to manufacturing.
•
Ensure robust growth of manufacturing sector through appropriate
interventions such as investments in innovation and technology, skill building,
right market framework and regulatory environment etc;
•
To facilitate making India a manufacturing hub for areas having potential for
global competitiveness for the world market, such as textiles, automobiles,
leather, food processing, steel, metals, chemical and petroleum products, etc.’
Members of the HLCM
a)
Prime Minister
b)
Finance Minister
Member
c)
Commerce & Industry Minister
Member
d)
Minister of the Sub-Sector concerned (where applicable)
Member
e)
Deputy Chairman, Planning Commission
Member
f)
Chairman, Economic Advisory council
Member
g)
Principal Secretary to PM
Member
h)
Chairman, NMCC
Permanent Invitees
a)
Member Secretary, NMCC
b)
Finance Secretary
c)
Secretary, Department of Commerce
d)
Secretary, Department of IPP
e)
Secretary, Ministry of HI&PE
f)
Secretary, Ministry of MSME
g)
Secretary, Economic Advisory Council
Chairman
Member/Convener
Responsibilities of The Empowered
Sub-Committee
• Formulate/review/approve policy papers and proposals
for submission to the HLCM
• Monitor the follow up on implementation of the decisions
of the HLCM and
• Undertake such other actions as may be necessary in
furtherance of the objectives of the HLCM
Members of the Empowered SubCommittee(ESC) of the HLCM
Chairman
(i)
Dr. V. Krishnamurthy, Chairman, NMCC
(ii)
Minister of State for Industry
Member
(iii)
Shri Anwarul Hoda, Member (Industry)
Planning Commission
Member
Permanent Invitees
(i)
Finance Secretary
(ii)
Secretary, Department of Expenditure
(iii)
Secretary, Department of Commerce
(iv)
Adviser to the Finance Minister,
(v)
PMO Representative
Future Course of Action
• The PM’s Group have given a very detailed
recommendations covering 16 main actions
points which are further sub divided into
numerous sub action points covering Policy for
Manufacturing, Fiscal Measures, Taxation, R&D
and Technology, Investment, Regulations, Raw
Materials, PSUs, Skills and Labour Issues,
various Sectors of Industries etc. PMO is
working out the modalities of implementation.
Functions continued
• NMCC is also represented in the following
Councils/Committees chaired by the Hon’ble
Prime Minister
 PM’s Council on Trade & Industry
 PM’s Trade & Economic Relations Committee
 PM’s Energy Coordination Committee
 PM’s High Level Advisory Group on Climate
Change
 PM’s National Council on Skill Development
Coordinating Role
• Council coordinates with various Apex agencies
like
Planning
Commission,
Investment
Commission etc.
• Provides Forum for interaction between various
stakeholders of specific sub-sectors through
meetings (about 250 meetings held so far).
• Interacts with line Ministries for infrastructure
enablement.
Other High Level Advices
• Advises Prime Minister through HLCM as well as
through monthly Reports of the progress of the
activities undertaken.
• Advises individual Ministries for sectoral policies
as well as plan allocations for the Five Year
Plans.
• Monitors developments in the sectors identified
by HLCM and advises interventions from timeto-time.
Reports
• NMCC’s own Reports:
National Strategy for Manufacturing
Report of the PM’s Group on Measures for
Ensuring Sustained Growth of the Indian
Manufacturing Sector which includes:
 Interim Report-I – issues relating to export
 Interim Report-II -Policy measures for
consideration at the time of the Budget-200809
Reports contd.
 Interim Report-III – Expenditure related
proposals
 Interim Report-IV – Tax Proposals
Reports continued
• Some Study Reports on specific subjects
 Recommendations to the Government on
Solar Energy Mission
 Report on need for a comprehensive Foreign
Economic Policy for India
 Report on “Current Global Financial Crisis
and its Impact on India-measures for
ensuring growth of the real sector of the
economy” steps suggested by NMCC on 20th
November, 2008
Studies commissioned on special
subjects
• Completed Studies
Study on Solar Photovoltaic Industry
Report on identification of Clusters in
and around Meerut City
Study
on
Labour
Intensity
&
Employment
Potential
of
Indian
Manufacturing
Studies commissioned on special subjects contd.
• Study on Determinants of Competitiveness of
Indian Auto Industry
• Assistance in policy making for enhancing
competitiveness of the Indian Manufacturing
Industry
• Productivity improvement by usage of ICT in the
PSEs
• Competitiveness of Indian Manufacturing –
Findings of the 2001 National Manufacturing
Survey
Studies commissioned on special subjects contd.
• On Going Studies
 Productivity and Competitiveness of Indian
Manufacturing Sector
 A study on “Firm Level Competitiveness
(strategies & roadmap development) in
Leather & Footwear and Agro & Food
Processing Sector
 A study to assess the ‘Comparative
Advantage to Various Consumer Goods
Produced in the country vis-à-vis the
Chinese counterparts
Studies commissioned on special subjects contd.
 Deriving Manufacturing Competitiveness
Index of States and Sectors
 A study on “Competitiveness through Quality
for Food Processing Industry in IndiaAdoption of Global Practice Milk & Diary
Products Industries”
 Measuring the Logistics Cost for Major
manufacturing Exports and assessing its
impact on their competitiveness
Action taken on completed Studies

Study on Solar Photovoltaic Industry

Reports posted on the NMCC website. Copy forwarded to stakeholders,
recommendations for implementation identified.

Report on identification of Clusters
in and around Meerut City
Study on Labour Intensity &
Employment Potential of Indian
Manufacturing
Study
on
Determinants
of
Competitiveness of Indian Auto
Industry
Assistance in policy making for
enhancing competitiveness of the
Indian Manufacturing Industry

The report posted on the NMCC website, circulated to Project Vikas
Group and MSME
Report posted on website, circulated to Council members and experts,
various Government Departments/State Govt./Planning Commission and
Industry Associations
Actionable points circulated to concerned Ministries/Departments.










Productivity improvement by usage 
of ICT in the PSEs
Competitiveness
of
Indian 
Manufacturing –Findings of the
2001 National Manufacturing Survey
Ministry of Textiles asked to decentralize TUFs delivery mechanism,
increase capital subsidy to weaving, knitting & processing segments and
take measures for exports of value added products.
DIPP asked to draft a model contract document CATP and consider
captive power plants for industrial clusters.
Ministry of Food Processing Industry asked to provide more outlay in the
11th Plan, take measures for implementing amended APMC Act and for
captive power plants.
DPE asked to take immediate steps for implementation.
The recommendations are being taken into consideration in the proposed
manufacturing Policy
Studies commissioned on special subjects contd.
 Study on enhancing competitiveness of
unregistered firms (Global Best Practices)
 Roadmap to enhance IT adoption and
penetration in India
Schemes/Strategies
• 10 year National Strategy for Manufacturing.
• 5 year programme for National Manufacturing
Competitiveness.
• Special emphasis for small and medium
enterprise development
NMCC Initiatives
• NMCP – National Manufacturing Competitiveness Prog.
• Visionary Leaders for Manufacturing Programme
(VLFM)
- Jointly conducted by Government, Academia and
Industry
- Four Opportunities ‘A,B,C & D’ for different level of
managers to develop different leadership skills.
• Project ‘Vikas’
- Joint initiative of the NMCC and Microsoft Corporation
- A National Manufacturing Portal with cluster level
Portals developed for 10 clusters
PM Group’s Recommendations
Action Points
Number of SubAction Points
1.
Recommendation-1: Manufacturing Policy
15
2.
Recommendation-2; Interest Rate & Exchange Rate Policies
01
3.
Recommendation-3: Indirect taxes & Domestic Value addition
08
4.
Recommendation-4: Trade Policies
04
5.
Recommendation-5: Technology Acquisition & Development
(a) Foreign Technology Collaborations
04
(b) Technology Development & FDI Policy
03
(c) Trade Policy & Technology Development
03
(d) Domestic Research & Development
08
6.
Recommendation-6: Innovation
05
7.
Recommendation-7: Regulations & Procedural Reforms
06
8.
Recommendation-8: Raw Materials – Acquisition of assets abroad
04
by Indian companies
Contd…
Contd…..
Action Points
Number of SubAction Points
9.
Recommendation-9: Skill Development
10.
Recommendation-10:
Industries
11.
Recommendation-11: Public Sector Undertakings
03
12.
Recommendation-12: Infrastructure and Special Economic Zones
12
13.
Recommendation-13: Labour Reforms
02
14.
Recommendation-14: Industry Verticals
Small
& Medium Scale
07
Manufacturing
07
(a) Employment Intensive Industries
02
(b) Aerospace
04
(c) Shipping
03
(d) Capital Goods Industry
07
(e) IT Hardware & Electronics
02
(f) Solar Energy
04
15.
Recommendation-15: Coordination with State Governments
02
16.
Recommendation-16: Continuing Mechanism
06