The Indian government is working on a framework to encourage the domestic as well as foreign manufacturers to set up vocational centres to train youth for jobs in the manufacturing sector, Commerce & Industry Minister Anand Sharma said.

Speaking at the annual World Economic Forum (WEF) at Davos, Mr. Sharma said that creation of jobs in the manufacturing sector remained a big challenge for the country in the 21st century.

Speaking on the topic, he said, "We are working on encouraging the manufacturers, whether Indian or foreign, for setting up vocational training centres. We do need reforms but right education and creation of jobs is a must too."

He added that the government was doubling the investment in research & development (R&D) space.

He also said that India managed to establish a strong place in manufacturing space but it still had a long way to become equal to nations like Germany. He stressed that providing a boost to manufacturing sector was the main option available to the country to generate additional jobs.

Mr. Sharma also urged domestic as well as foreign manufacturers to train more and more people and generate new job opportunities.

Meanwhile, Tesco has sought clarification on the government's new foreign direct investment (FDI) policy, in a move that provides a strong hint that the British retailer giant is eager to enter Indian retail sector.