Current Affairs-Indian Economic Survey-2012-13:Government’s Key Initiatives to Boost Manufacturing

Government’s Key Initiatives to Boost Manufacturing

The Government has taken several initiatives to uplift overall business sentiment, boost investment, strengthen industry and in particular the manufacturing sector in the country. The Twelfth Five Year Plan document lays down broad strategies for spurring industrial growth. It recommends sector specific measures covering micro, small, medium and large industries in the formal as well as informal sector. Some of major initiatives that can change the manufacturing landscape of the country are the National Manufacturing Policy (NMP), implementation of the Delhi Mumbai Industrial Corridor (DMIC) Project and reforms to promote foreign direct investment (FDI) and an-e-Biz project. 

The National Manufacturing Policy was approved by the Government in October, 2011. The major objectives of the policy are enhancing the share of manufacturing in gross domestic product (GDP) to 25 per cent and creating an additional 100 million jobs over a decade or so. The NMP provides for promotion of clusters and aggregation, especially through the creation of National Investment and Manufacturing Zones (NIMZs). Out of twelve NIMZs so far announced, eight are along the DMIC. Besides, four other NIMZs have been given in-principle approval (i) Nagpur in Maharashtra, (ii) Tumkur in Karnataka, (iii) Chittoor district in Andhra Pradesh and (iv) Medak district in Andhra Pradesh. 

Industrial development initiatives under DMIC project presently cover eight industrial cities that are proposed to be developed along the railway corridor. The Master Planning for the investment regions and industrial areas taken up initially are to be developed as new cities in Gujarat, Madhya Pradesh, Haryana, Rajasthan and Maharashtra have been completed and master planning in Uattar Pradesh has started. 

In the policy reform process, the FDI policy is being progressively liberalized on an ongoing basis in order to allow FDI in more industries under the automatic route. Some recent changes in FDI policy, besides consolidation of the policy into a single document include FDI in multi-brand retail trading up to 51 per cent, subject to specified conditions; increasing FDI limit to 100per cent in single-brand retail trading; FDI up to 49 per cent in civil aviation and power exchanges; FDI up to 49 per cent in broadcasting sector under the automatic route and FDI above 49 per cent and up to 74 per cent under the govt route both for teleports and mobile TV. 

The govt has announced the setting up of ‘Invest India’ a joint-venture company between the Department of Industrial Policy and Promotion and FICCI, as a not-for-profit, single window facilitator for prospective overseas investors and to act as a structured mechanism to attract investment. The objectives of setting up of the e-Biz portal are to provide a number of services to business users, covering the entire life cycle of their operation. The project aims at enhancing India’s business competitiveness through a service oriented, event-driven G2B interaction.