The new manufacturing policy approved by the Cabinet on Monday aims to create hundred million jobs in next 10 years.

The policy paves the way for building industrial zones and beefing up manufacturing with world class infrastructure and softer labour laws.

Briefing reporters about the new policy in New Delhi on Tuesday, Commerce Minister Anand Sharma said that government is keen to lift the share of manufacturing sector in the GDP to 25 percent in the next decade. It is at 16 percent now.

India pushed the creation of manufacturing industrial zones with an eye to revamp the sector and give a fillip to the export sector. India, the Asia’s third largest economy will also be able to compete with China.

The government had set up a Group of Ministers headed by Agriculture Minister Sharad Pawar to iron out inter ministerial differences on some of the issues.

In yet another important decision, the Cabinet decided to implement the wage board recommendations for journalists and non journalists providing a quantum jump in their salaries. The recommendations will be implemented with some modifications.

Making an announcement in New Delhi , Information and Broadcasting Minister Ambika Soni said that the recommendations will be applicable from 1st July 2010. She said however, transport and house rent allowance will be paid from the date of the notification.

She said, Cabinet also decided to enhance the limit of one percent interest subsidy on housing loans. This will be applicable on loans upto 15 lakh rupees.

The Information and Broadcasting Minister said that government also decided to raise its quota in the International Monetary Fund, IMF from 2.44 to 2.75 percent.

She said that it was also decided to extend broadband facility to all Gram Panchayats. The decision to be implemented in two years’ time fulfils an election promise made by the UPA.

Wheat MSP hiked by Rs 115/qtl, pulses by up to Rs 700

The govt on Tuesday announced a hike of Rs 115 per quintal in minimum support price (MSP) of wheat to farmers at Rs 1,285 per quintal for the ongoing rabi (winter) season, to offset the impact of higher input cost.

The decision to raise MSP of wheat and other rabi crops was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) in New Delhi on Tuesday.

MSP for wheat had stood at Rs 1,170 per quintal in the 2011-12 marketing year (April-June).

The CCEA also approved increase in the MSP of pulses by up to Rs 700 per quintal to boost production as the country is dependent on imports to meet domestic demands.

The government has raised the MSP of for both gram and masur at Rs 2,800 per quintal, a jump of Rs 700 and Rs 550 a quintal, respectively, for the 2012-13 marketing season.

The support price for mustard seed and safflower has been increased to Rs 2,500 per quintal each, up by Rs 650 and Rs 700 per quintal, respectively.

The hike in MSP is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

The sowing of rabi crops such as wheat commenced this month. These crops are to be harvested in April, 2012.