A day after Home Minister P. Chidambaram asked industry to help bridge the trust deficit in Naxal-hit areas, the Confederation of Indian Industry (CII) says it has identified five districts in Andhra Pradesh, Maharashtra and Bihar for building social infrastructure.
“We are currently studying the situation in Naxal-hit districts of Vizag, Khammam in Andhra Pradesh, Gadchiroli in Maharashtra, Jehanabad and Jamui in Bihar to identify areas where the industry can invest in developmental work,” said the new CII President, Hari S. Bhartia, on Thursday.
Bhartia said CII is studying the situation in these areas to explore areas of investment.
Chidambaram had said the industry must contribute in creating an alternative machinery for delivery of goods and services in Naxal-hit areas.
Unveiling CII’s agenda for the current fiscal, Bhartia said the manufacturing sector needs to register an average 11-12 per cent growth if the nation has to achieve a GDP growth rate of 10 per cent.
“The manufacturing sector is key to ensure employability,” he said, adding that 1 per cent growth in the sector would create 20-30 million jobs. The agriculture sector needs to grow at a sustained 4 per cent, and services needs to remain robust, he added.
CII has forecast that India’s GDP will grow at around 8.5 per cent in 2010-11. Bhartia said though the recovery in the European market has been slow, it will not have any major impact on the Indian economy.
“But we have to be cautious,” he said.
Bhartia also said the Reserve Bank of India (RBI) would need to play an important role in ensuring the rupee does not appreciate further which would impact the export sector.