The government needs to focus on ways to push the growth of manufacturing sector if it wants to maintain a sustained GDP growth of 9-10 per cent per year, a study by Assocham-EY said.

The report said that although implementation of the Goods and Services Tax (GST) has addressed several regulatory issues, state governments need to resolve issues like bureaucratic obstacles, obstructive regulations and policies to boost manufacturing sector.

“If India has to maintain a sustained GDP growth of 9-10 per cent per annum, it is crucial that the manufacturing sector grows steadily at 14-15 per cent per annum over the next three decades,” it said.

It suggested that States should focus on those industries where it has a competitive edge over others in terms of raw material availability, demand, logistics and skilled manpower.