We have an advantage of being a young country- with over 60 percent of population in the working age group of 15-59 years. This also has its socio-economic manifestations in the form of over-dependence of a large section of the population on agriculture for its livelihood, disguised unemployment and urban unemployment. For a country with the largest young population in the world, this creates a challenge of significant magnitude. Therefore, we need to engage the unutilized work and unproductive workforce in the manufacturing sector, so as to achieve the target of 10 percent GDP growth. So, India is aiming manufacturing sector to be the bulwark of employment creation initiative.
Manufacturing sector is a wealth-producing sector of an economy and it has multiplier effect on creation of jobs. The development of manufacturing sector is also critical for providing value addition to our natural and agricultural resources, meeting our strategic requirements and developing new technologies to achieve sustainable and inclusive growth. In order to address these imperatives, the Department of Industrial Policy and Promotion has proposed to formulate a National Manufacturing Policy.
The objectives and main features of the proposed National Manufacturing Policy are to Increase sectoral share of manufacturing in GDP to 25% by the year 2022; to double the current employment level in the sector; to increase the level of domestic value addition; to enhance global competitiveness of the sector; and to make the country an international manufacturing hub. To achieve these objectives, the policy aims to create world class industrial infrastructure, a conducive business environment, an ecosystem for technological innovation– especially in the domain of green manufacturing, institutions for industry relevant skill up gradation, and mechanisms for easy access to finance for entrepreneurs.
The policy instruments proposed are Setting up of “National Manufacturing and Investment Zones”; Rationalization and simplification of business regulations; Creation of a simple and expeditious exit mechanism for closure of sick units; Financial and institutional structures for development of technology, including green technology; Industrial training and skill up gradation measures; and Incentives for equity participation/venture capital in manufacturing units and related activities.
The establishment of National Manufacturing and Investment Zones (NMIZs) will be a major cornerstone of the industrialization strategy. They will be developed as integrated industrial townships with state-of-the-art infrastructure and land use on zoning basis. NMIZ would be large areas of at least 2000 hectares in size, to be developed and managed by Special Purpose Vehicles (SPVs), with the requisite eco-system. Each SPV will undertake measures for the development, growth, operation and management of the NMIZ. Accelerated growth of manufacturing industries will be augmented within the NMIZs and outside through appropriate policy support. The Government has decided to set up the first National Manufacturing and Investment Zone in Rajasthan along the Delhi-Mumbai Industrial Corridor (DMIC) Project in order to give a major boost to manufacturing sector. The Government intends to develop NMIZ which would not only provide the required infrastructure but also enabling environment to give impetus to the manufacturing activities in the country.
A discussion paper on National Manufacturing Policy (NMP) was placed on the Department of Industrial Policy & Promotion website on March 31, 2010 to elicit stakeholders’ views. After wide ranging consultations with all stakeholders, including industry bodies, and technical experts and consultants, a draft NMP has been prepared and the same has been circulated for inter-ministerial consultations. While updating on the draft, Union Minister for Commerce & Industry, Shri Anand Sharma, said that, “We may set up a committee of secretaries. The new policy will have special emphasis to make India the workshop of the world, especially in the emerging green industries such as solar power”. (PIB Features)
National Manufacturing and Investment Zones (NMIZs) a major cornerstone of industrialization strategy
Sameer Pushp - 2011-01-11 18:06
Today, India is one of the fastest growing economies in the world and is aiming at a sustained GDP growth of 9-10 percent per annum. This necessitates the growth of the manufacturing sector at 13 to 14 per cent per annum over a long period. However, the contribution of the Manufacturing Sector to India’s GDP has remained around just 16% over the last two decades. The situation of the manufacturing sector in India is a cause of concern especially when seen in the context of transformation registered in this sector by other Asian countries. This relatively low contribution indicates that India has not been able to fully leverage the opportunities provided by the dynamics of the global world economy.