National Manufacturing Competitiveness Council

1. National Manufacturing Competitiveness Council NMCC National Manufacturing Competitiveness Council Government of India

2. 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 .

3. 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

4. Members of the NMCC

5. 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.

6. 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 sub-sectors 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;

7. 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.’

8. Members of the HLCM

9. 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

10. Members of the Empowered Sub-Committee(ESC) of the HLCM

11. 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.

12. 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

13. 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.

14. 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 time-to-time.

15. 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-2008-09

16. Reports contd. • Interim Report-III – Expenditure related proposals • Interim Report-IV – Tax Proposals

17. 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

18. 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

19. 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

20. 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

21. 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 India-Adoption of Global Practice Milk & Diary Products Industries” • Measuring the Logistics Cost for Major manufacturing Exports and assessing its impact on their competitiveness

22. Action taken on completed Studies

23. 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

24. Schemes/Strategies • 10 year National Strategy for Manufacturing. • 5 year programme for National Manufacturing Competitiveness. • Special emphasis for small and medium enterprise development

25. 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

26. PM Group’s Recommendations Contd…

27. Contd…..