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India's manufacturing sector must undergo shift for ambitious goals: report

Source: Xinhua| 2018-11-19 21:02:42|Editor: xuxin
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NEW DELHI, Nov. 19 (Xinhua) -- India's environment of manufacturing competitiveness and services has to undergo a basic paradigm shift if the country aimed at becoming a 5-trillion-U.S. dollar economy by 2025, said a business expert who headed a committee set up to study the existing special economy zone (SEZ) policy in the country.

Submitting a report prepared on the country's existing SEZ policy with the commerce and industry ministry, Baba Kalyani said on Monday that the success seen by services sector like information technology (IT) and IT-enabled services (ITeS) has to be promoted in other services sector like health care, financial services, legal, repair and design services.

The Kalyani-led committee was constituted by the Ministry of Commerce and Industry, with the objectives of evaluating the SEZ policy and making it World Trade Organization compatible and recommending measures for maximizing utilization of vacant land in SEZs.

The Indian government has set an ambitious target of creating 100 million jobs and achieving 25 percent of the gross domestic product (GDP) from the manufacturing sector by 2022, as part of its flagship Make in India program.

Also, the government plans to increase manufacturing value to 1.2 trillion U.S. dollars by 2025.

In order to make these ambitious plans to propel India into a growth trajectory, the country requires evaluation of existing policy frameworks to catalyze manufacturing sector growth, and simultaneously the policy needs to be compiled with the relevant WTO regulations, said an official statement released on Monday.

Reacting to the report submitted to his ministry, Commerce and Industry Minister Suresh Prabhu said the suggestions of the committee were very constructive and that his ministry will immediately begin formal consultations with the Finance Ministry and other ministries to implement the recommendations.

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