The centre will set up a high-level committee of state ministers to make policy recommendations for increasing the share of manufacturing in the country's national income to 25 per cent.
Announcing this at the first conference of state industry ministers in New Delhi, commerce and industry minister Anand Sharma said while Indian industry had made great strides, there was need for further accelerating its growth and enhancing productivity.
While India is one of the most attractive investment destinations for global investors, he said, Indian industry is yet to become globally competitive. He emphasised the role of states in taking industrial development to the next level.
He said the state industry ministers' conference would henceforth be held annually and that he would hold a special session with the North East states to address the issues and challenges of industrial development in that region.
He said his ministry was targeting an annual FDI inflow of $50 billion by 2012 and $100 billion by 2017.
Sharma also announced the launch of a new scheme for setting up industrial parks for labour-intensive manufacturing sectors such as gems and jewellery, toys, sports goods, glass and glass products, ceramics, bicycles and invalid carriages, and electronic hardware.
Minister of state for commerce and industry Jyotiraditya Scindia stressed the need to encourage industrial growth by creating an investor-friendly policy regime. For achieving the goal of accelerated industrial growth, he said, the state governments and the central government should work closely.