New industrial policy will lift sector’s share of GDP to 20 per cent: Suresh Prabhu 

NEW DELHI: India’s new industrial policy will drive manufacturing to account for $1 trillion of the country’s economy by 2025-26, said Union Minister for Commerce & Industry and Civil Aviation Suresh Prabhu on Thursday.

The policy, which is likely to be unveiled soon, will bring in newer sectors into the economy to create jobs and develop infrastructure such as industrial parks, he said.

“Through implementing the policy, we want to increase India’s share of Gross Domestic Product (GDP) from manufacturing to 20 per cent to (a total GDP of) $5 trillion by 2025-2026. Currently, it is at a growth rate of 16 per cent,” said Prabhu at an event in Chennai.

“We are very sure that we will achieve $1 trillion of GDP coming from manufacturing, $3 trillion from services and the rest from other activities. This is the potential profile of India’s GDP in the near future,” he added.

The Centre, through its new industrial policy, also aims to partner with the state governments and lay emphasis in the growth of industrial development in districts.

The Union minister said that the policy’s thrust would be on bringing 2-3 per cent growth in the GDP of each district. The Centre is also in the process of laying certain parameters for ease of doing business and industrial development in districts.

“To make this happen, we have decided to select six districts in five states and to develop these districts and increase their GDP by 3 per cent. Once we succeed, it will take a few more months, we shall use this as an all-India parameter,” said Prabhu.

Centre will also set up a few offices globally to promote exports, while collaborating with the states to improve infrastructure, ease of doing business.