FM Arun Jaitley Signals Labour, Infra Reforms To Increase Manufacturing

NEW DELHI: The government plans to address labour issues, infrastructure deficit and high cost of capital soon to meet the "uphill tasks" of raising share of manufacturing in gross domestic product (GDP) from 15 to 25 per cent, Finance Minister Arun Jaitley said in the national capital on Wednesday.

"I still find in merchandise products, our cost of capital, or labour regime, our infrastructure, the improvements which are required in our trade facilitation - these still have to be assisted in order to bring down the prices of our manufactured products," Jaitley said.

"And as part of 'Make in India' campaign these are special areas which we will have to address and address very soon. We are in the process of doing so," the Finance Minister said.

The country is endeavouring to become a global manufacturing hub, Jaitley said at an event organised by the Ministry of Commerce.

Noting that the real job creation is in the manufacturing sector, the minister said, "That's why one of our national challenges is that 15 per cent odd share of manufacturing today has to be increased to 25 per cent. But that's an uphill task and therefore that leaves us essentially with the services sector whose growth is a low hanging fruit in India."