India to set up three more manufacturing investment zones
Colombo: Against the backdrop of sharp decline in manufacturing growth, India will be setting up three more mega industrial and investment zones as part of its endeavour to push the contribution of the sector up to 25 percent of GDP by 2020.
Commerce and Industry Minister Anand Sharma said the notification for setting up the National Manufacturing and Investment Zones (NMIZ) is expected to be issued by this month end.
"We are seriously considering three National Manufacturing and Investment Zones (NMIZ) of which one will be in Andhra Pradesh and two in Karnataka," said Sharma who is on a three-day visit here.
The decision, by which the total number of NMIZ will go up to 12, comes against the backdrop of sharp decline in manufacturing growth to 0.3 percent during the January-March quarter from 7.3 percent in the corresponding period of 2010-11.
Sharma said there are four proposals pending with the government, including that from Kerala but they are seeking special dispensation in land area requirement of a minimum 5,000 hectares.
The government has been taking several steps to increase the share of the manufacturing sector in the GDP to at least 25 percent by 2020 from the present 16 percent.
In this regard, a new National Manufacturing Policy (NMP) was announced recently, which provides for NMIZs. NMIZs will be mega industrial zones with world class supporting infrastructure.
The government is offering a host of incentives like exemption from capital gains tax and a liberalised labour and environment norms to promote these zones. The NMP proposes to create 100 million jobs by 2020.