To sustain an economic growth rate of 9%, the manufacturing sector must grow at a rate of 10-12% annually, Commerce and

Industry Minister Anand Sharma said today. "It is indeed a matter of serious concern that manufacturing has grown at only 0.9% this fiscal", he said addressing the Indian Institute of Management here. India has made its presence felt globally, yet even now it cannot boast of one global brand of manufactured goods even when countries like South Korea, Taiwan, China have plenty of them, Sharma said. In order to address this challenge, Sharma said the government has consciously given a concerted thrust to manufacturing and the National Manufacturing Policy unveiled in October 2011 was perhaps one of the biggest policy roll outs of recent times. This policy seeks to raise the share of manufacturing to GDP from 1625% within a decade and create 100 million productive jobs, he said. Indian manufacturing has grown in strength over the years but has largely been confined to industries which are labour intensive such as textiles, leather, gems and jewellery, Sharma said. The German leadership of global manufacturing has been driven by a huge push on investments in technology and this is an area where Indian enterprise would need to reinvent themselves and carve a niche in the global market place, Sharma said. "We have the human resource which can enable this transformation," he said. Sharma said latest projections indicate that this year, the global growth will be weak at 3.5%, almost at the same level as last year. "What is even more worrisome is the slowdown in growth of developing economies, which grew at 5.1% last year, registering perhaps the slowest growth in the last decade," he said. Manufacturing Sector Manufacturing is the use of machines,toolsand labour to produce goods for use or sale.The term may refer to a range of human activity, fromhandicrafttohigh tech,but is mostcommonly applied

toindustrialproduction, in whichraw materialsare transformedintofinished goodson a large scale. Such finished goods may be used for manufacturingother, more complex products, such asaircraft,household appliancesorautomobiles,orsold towholesalers,who in turn sell them toretailers,who then sell them to end users the"consumers".Manufacturing takes turns under all types of economic systems.In a free market economy,manufacturing is usually directed toward themass productionof productsfor saletoconsumersat a profit. In acollectivist economy,manufacturing is more frequentlydirected by the state to supply a centrally planned economy. In free market economies,manufacturing occurs under some degree of governmentregulation.Modern manufacturingincludes all intermediate processes required for the production and integration of aproduct's components. Some industries, such assemiconductorandsteelmanufacturersuse the term fabrication instead Steel Industry Steel, the recycled material is one of the top products in the manufacturing sector of theworld.The Asian countries have their respective dominance in the production of the steel all overthe world. India being one among the fastest growingeconomiesof the world has beenconsidered as one of the potential global steel hub internationally. Over the years,particularly after the adoption of the liberalization policies all over the world, the Worldsteel industry is growing very fast.SteelIndustryis a booming industry in the whole world. The increasing demand for it wasmainly generated by the development projects that have been going on along the world,especially the infrastructural works andreal-estateprojects that has been on the boomaround the developing countries. Steel Industry was till recently dominated by the UnitedStates of America but this scenario is changing with a rapid pace with the Indiansteel companieson an acquisition spree. TATA Steel Tata Steel formerly known as TISCO and

Tata Iron and Steel Company Limited is the world'sseventh largest steel company, with an annual crude steel capacity of 31 million tonnes. It isthe largest private sector steel company in India in terms of domestic production. Ranked258th onFortune Global 500,it is based inJamshedpur,Jharkhand,India. It is part of TataGroupof companies. Tata Steel is also India's secondlargest and second-most profitablecompany in private sector with consolidated revenues of 132 ,110 crore(US$29.72billion) and net profit of over 12,350 crore(US$2.78 billion) during the year ended March31, 2008.Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions; the companyhas become amultinationalwith operations in various countries. The Jamshedpur plantcontains the DCS supplied byHoneywell.The registered office of Tata Steel is inMumbai. The company was also recognized as the world's best steel producer by World SteelDynamics in 2005. The company is listed onBombay Stock ExchangeandNational StockExchange of India,and employs about 82,700 people (as of 2007). HR Practices in TATA Steel At Tata Steel, there is a continuous effort of staying in touch with employees to ensure thatthere is the right culture to engage them in consistent performance improvement. There arewell-established and effective arrangements at each business location for transparentcommunication and consultation with Works Councils and Trade Union representatives.Further, the Company has always registered steady quality improvement and productivity enhancement through dedicated efforts of the Companys Performance Improvement teams, focused on technical best practice transfer and the value of knowledge networks.Towards the well-being of employees Tata Steel has put into practice many initiatives,events and programmes that have helped to create not only an enduring loyalty amongstemployees but also enabled them to have a more fulfilled life Special Benefits provided for Employees

Medical facilities :

Free medical facilities for employees and their family, whichcontinues even after retirement.

Housing facilities: Subsidised electricity, water and housing facilities to allemployees.

Higher studies : Monetary incentives to employees acquiring higher qualifications ina related field along with study leave, scholarships etc. when necessary.

Holiday Homes: Tata Steel has five holiday homes for benefit of employees duringvacation. Tata Steel Officers Beach Club : All officers of Tata Steel are eligible to be membersof the Beach Club that offers holidays in elite hospitality chains.

Family Benefit Scheme: In the tragic case of a fatality in the Works, a monthlypension equal to the amount of the last drawn salary of the deceased is given tothe legal heir until the time the deceased would have attained the age of 60.

Developing People Valuing its people as a great asset, Tata Steel is committed to their development,both in order to benefit the individual and to benefit the Company throughincreased knowledge and skills. In order to leverage maximum potential of humanresource to achieve business objectives the Company recognises that enrichment of people will help retain a motivated workforce in a competitive environment.

Skills Development - Non-officers

Skill training is a process that begins at the time of an employee joining the companyand continues throughout his or her career. Employees work in clusters of multi-skilled workers and move across and within clusters on improving their skills levels.The Technical Training Institute imparts vocational and basic skills training; thedepartments impart on-the-job training.In order to promote selfdirected learning, the Company has introduced e-learningwhereby employees can access electronic courses from their departmental eLearning centres.

Skills Development Officers Tata Steel Management Development Centre conducts a number of managerial andfunctional competency based programmes for officers and supervisors. Theobjectives of these programmes are:

To build individual capability by enhancing managerial and functional competencieswhich are critical to operations, service and support functions.

To build a leadership pipeline in the organisation to prepare the people to meet thechallenges of growth, globalisation and change.

Equal Opportunities Practices

Tata Steel is an equal opportunity employer and does not discriminate on the basisof race, caste, religion, colour, ancestry, marital status, sex, age or nationality. TheComp anys Affirmative Action Policy promotes equal access to its employment and opportunities and all decisions are merit based. Respect for equal opportunities asset out in the Tata Code of Conduct is followed. The HR Policy and Affirmative Action Policy are monitored by the Ethics Counsellor and supported by an effectivegrievance redressal mechanism.Tata Steel encourages female employees to advance their career with initiativesdedicated towards personal development and professional advancement. TheWomen

Empowerment Cell examines and addresses the issues and concerns of female employees and ensures that they do not miss out on any growth opportunity.

Freedom of association and collective bargaining

Tata Steel respects the employees right to exercise fre edom of association andcollective bargaining and provides appropriate support for this. There is anestablished system of joint working and collective bargaining, which ensures thatevery employee is able to exercise this right without any fear. Pioneering theconcept in India, a system of Joint Consultation has been in place in Tata Steel formore than 50 years. Recommendations

Safe, Healthy and Happy Workplace

Creating a safe, healthy and happy workplace will ensure that your employees feelhomely and stay with your organization for a very long time. Capture their pulsethrough employee surveys.

Open Book Management Style

Sharing information about contracts, sales, new clients, management objectives,company policies, employee personal data etc. ensures that the employees are asenthusiastic about the business as the management. Through this open book processyou can gradually create a culture of participative management and ignite thecreative endeavor of your work force.. It involves making people an interested partyto your strategic decisions, thus aligning them to your business objectives. Be asopen as you can. It helps in building trust & motivates employees. Employee self service portal, Manager on-line etc. are the tools available today to the managementto practice this style.

Performance linked Bonuses

Paying out bonuses or having any kind of variable compensation plan can be both anincentive and disillusionment, based on how it is administered and communicated.Bonus must be designed in such a way that people understand that there is nopayout unless the company hits a certain level of profitability. Additional criteriacould be the team's success and the individual's performance. Never pay out bonuswithout measuring performance, unless it is a statutory obligation.

360 Degree Performance Management Feedback System

This system, which solicits feedback from seniors (including the boss), peers andsubordinates, has been increasingly embraced as the best of all available methodsfor collecting performance feedback. Gone are the days of working hard to impressonly one person, now the opinions of all matter, especially if you are in a leadershiprole (at any level). Every person in the team is responsible for giving relevant,positive and constructive feedback. Such systems also help in identifying leaders forhigher level positions in the organization. Senior managers could use this feedbackfor self development.

Fair Evaluation System for Employees

Develop an evaluation system that clearly links individual performance to corporatebusiness goals and priorities. Each employee should have well defined reportingrelationships. Self rating as a part of evaluation process empowers employees.Evaluation becomes fairer if it is based on the records of periodic counselling &achievements of the employee, tracked over the year. For higher objectivity, besidesthe immediate boss, each employee should be screened by the next higher level(often called a Reviewer). Cross functional feedback, if obtained by the immediateboss from another manager (for whom this employee's work is also important), willadd to the fairness of the system. Relative ratings of all subordinates

reporting to thesame manager are another tool for fairness of evaluation. Normalization of evaluation is yet another dimension of improving fairness Knowledge Sharing

Adopt a systematic approach to ensure that knowledge management supportsstrategy. Store knowledge in databases to provide greater access to informationposted either by the company or the employees on the knowledge portals of thecompany. When an employee returns after attending any competencies or skillsdevelopment program, sharing essential knowledge with others could be mademandatory. Innovative ideas (implemented at the work place) are good to be postedon these knowledge sharing platforms. However, what to store & how to maintain aKnowledge base requires deep thinking to avoid clutter.

Highlight performers

Create profiles of top performers and make these visible though company intranet,display boards etc. It will encourage others to put in their best, thereby creating acompetitive environment within the company. If a systems approach is followed toshortlist high performers, you can surely avoid disgruntlements.

Open house discussions and feedback mechanism

Ideas rule the world. Great organizations recognize, nurture and execute great ideas.Employees are the biggest source of ideas. The only thing that can stop great ideasflooding your organization is the lack of an appropriate mechanism to capture ideas.Open house discussions, employee-management meets, suggestion boxes and ideascapture tools such as Critical Incidents diaries are the building blocks that can helpthe Managers to identify & develop talent.

Reward Ceremonies

Merely recognizing talent does not work, you need to couple it with ceremonieswhere recognition is broadcast. Looking at the Dollar Check is often less significantthan listening to the thunderous applause by colleagues in a public forum.

Delight Employees with the Unexpected

The last but not least way is to occasionally delight your employees with unexpectedthings that may come in the form of a reward, a gift or a well-done certificate.Reward not only the top performers but also a few others who are in need of motivation to exhibit their potential. Choices must be made about which manufacturing sectors will be more important for inclusive and sustainablegrowth in the next 25 years. Choices must also be madeabout the best ways to stimulate that growth.Improving the physical infrastructure for manufacturingmust be an essential element of the strategy. Here toopolicymakers must make choices. Should we have morerails and trains than roads and commercial vehicles fortransportation of goods?Should the focus of urban infrastructure be on publicrather than personal transportation, and if so what modes?Similarly in power generation, which technologies shouldbe promoted with a view to environmental sustainability?Such choices about infrastructure will, in turn, determinethe manufacturing industries required for building theinfrastructure.

y Thus the selection of manufacturing sectors that shouldget higher priority is not a trivial exercise because there arelinkages between industrial sectors and also linkages withoverall economic needs for inclusion and sustainability.In a world in which not only companies, but countries too,are rated on their competitiveness, and a world in which allmust strive to climb that scale, the only sustainable sourceof competitive advantage can be a or to learn, change, and improve faster than any potential competition. y Therefore a competitive ability lies in thecapability of the collaborative process between producersand policymakers to produce effective strategies andpolicies.

y India cannot copy the collaborative processes betweenpolicymakers and domestic producers used by Japan,Korea, or China, whose rapid industrial growth in thelast 50 years has contributed to the rise of Asia withinthe global economy. Those countries may have setaside labourrights and environmental concerns their pursuit of industrialgrowth. While opening industrial policy to the world,the question of which flag investors and managers of industrial enterprises fly will come up in matters of national strategy. The 21st century global corporationshire the best talent from everywhere, sell whereverthey can, buy from wherever it is best for theirbusiness, and invite investors from everywhere to whom they promise good returns. MICRO, SMALL & MEDIUM ENTERPRISES

C onsumer Goods:NEUTRA L IMPACT:y T he -board increase in central excise duty from8% to 10% is likely to result in overall increase in the pricesof consumer goods. T he increase in the central excise duty islikely to result in increased prices of cigarettes. However, therise in disposable income because of the relaxation in personal tax rates will boost demand for consumer goods. T he exemption of mobile phone accessories from special additional duty has been extended till March 31, 2011 whichis likely to result in stability of prices of the product. T hereduction in central excise duty on replaceable kits for household type water filters other than those based on ROtechnology is likely to result in a fall in prices of the product