Thaindian News

New Delhi, Oct 25 (IANS) The cabinet Tuesday approved the National Manufacturing Policy that aims to create 100 million jobs by 2022 and develop mega industrial zones with world-class infrastructure and flexible labour and environment regulations.

The Cabinet Committee on Economic Affairs headed by Prime Minister Manmohan Singh approved the policy that also aims to increase the share of manufacturing in the economy to 25 percent from the current around 16 percent.

According to the policy, the government would help establish ‘national manufacturing investment zones’ with world-class infrastructure and investment friendly regulations to boost manufacturing activities.

“China has done it, Germany has done it, Japan has done it and now India has decided to do it,” Commerce and Industry Minister Anand Sharma told reporters after the cabinet meeting here.

The minister said with “over 220 million people estimated to join the work force in the next decade, the manufacturing sector will have to create gainful employment for at least half this number”.

The policy envisages specific interventions broadly in the areas of industrial infrastructure development, improvement of the business environment through rationalisation and simplification of business regulations, development of appropriate technologies especially green technologies for sustainable development and skill development of the younger population.

Reacting to the government’s decision, Secretary General of the Federation of Indian Chambers of Commerce and Industry Rajiv Kumar said the new policy would provide the much needed fillip to the manufacturing sector in the country.

“We welcome the proposal to create large national investment and manufacturing zones to achieve economies of scale and global competitiveness. As the emphasis is on self-regulation in these zones, this would significantly bring down the compliance burden on the manufacturing units,” said Kumar.

He said the new policy would address the major constraints related to finance, skills, technology and regulations in the manufacturing zones without hurting the units outside it.

“India has taken a historic step today that would revolutionise manufacturing sector in the country,” said Chandrajit Banerjee, director general of the Confederation of Indian Industry.

Banerjee said the decision would boost overall business confidence in the country.

“Timing of the approval is also important and assumes greater significance given the domestic business environment and current global uncertainties. The announcement of the policy at this critical time would generate momentum resulting in long term positive impact on the growth aspirations,” he said.