Narendra Modi, in his maiden Independence Day speech as Prime Minister (PM), announced to the world that he'd turn India into a manufacturing and export powerhouse, coupled with employment generation for the country's teeming youth. And, invited foreign investors to come.

"Come, make in India. Be it plastics or cars or satellites or agricultural products, come make in India…We need to encourage the manufacturing sector. We need to channelise the strength of the youth through manufacturing. Manufactured goods should have zero defect as also zero effect on the environment," the PM said from the sprawling Red Fort here on Friday.

He was speaking, he added, as the country's "pradhan sewak" (first servant) and not the "pradhan mantri" (prime minister).

Expressing concern on the country's rising import bill, Modi on Friday urged Indian entrepreneurs to make everything required for the country so that it does not rely on import. "We should strive to be a nation that doesn't import but exports. I urge the youth to reduce dependence on imported products," he said.

Ever since the new government under the National Democratic Alliance came to power in May this year, it has stressed on making India a global manufacturing hub.

According to some officials, the PM's speech was a clear indication of more reforms to come in the near future.

"Although this government has halted the FDI (foreign direct investment) policy in multibrand retail, it will throw open several other key sectors for more foreign inflows, with a clear focus on manufacturing and employment generation," said an official, who refused to be identified.

According to another, the government is expected to propel manufacturing with an incentive package for special economic zones.

The share of the manufacturing sector in gross domestic product has remained 16 per cent; the goal of the National Manufacturing Policy is to achieve 25 per cent by 2020. The NMP was announced in November 2011.

The government has granted in-principle approval to a total of 16 National Investment and Manufacturing Zones. Of these, eight are located outside the Delhi-Mumbai Industrial Corridor region.

Recently, the government also liberalised foreign investment rules for the construction and maintenance segments of the railway and in the defence sector. Last month, the Cabinet gave its nod for setting up industrial parks in China across segments.

From the national accounts statistics, the annual growth rate (at 2004-05 prices) of the manufacturing sector in 1991-92 was a negative 2.4 per cent, after which it remained positive for successive years before becoming marginally negative at (-) 0.7 per cent in 2013-14.

Exports started on a positive note this financial year, reaching $107.8 billion in April-July, the first four months, against $99.3 bn in the same period last year. The government will soon be announcing a new Foreign Trade Policy for a period of five years from 2014.

src:sify.com