The Government of India has announced a National Manufacturing Policy with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. The Investment/”>National Investment & Manufacturing Zones (NIMZs) are an important instrumentality of the manufacturing policy.
The NIMZs are envisaged as integrated industrial townships with state of the art Infrastructure-2/”>INFRASTRUCTURE; land use on the basis of zoning; clean and energy efficient technology; necessary social infrastructure; Skill development facilities etc. to provide a productive Environment for persons transitioning from the primary to the secondary and tertiary sectors.
The policy is based on the principle of industrial Growth in PARTNERSHIP with the States. The Central Government will create the enabling policy frame work, provide incentives for Infrastructure Development on a Public Private Partnership (PPP) basis through appropriate financing instruments, and State Governments will be encouraged to adopt the instrumentalities provided in the policy.
Application & Approval
A two-stage application procedure has been put in place. In the first stage, the State will make an application for in-principle approval to the Department of Industrial Policy and Promotion (DIPP), the nodal department. The application will be examined on the basis of the format and submitted for in-principle approval to the Commerce & Industry Minister. The said in-principle approval will be communicated to the State Government.
Techno-economic Feasibility Report cum Development Plan
A techno-economic assessment will be carried out by the State Government to assess the economic and technical viability of the identified land area for a NIMZ. Such an assessment will be presented by the State Government along with the application for final approval.
Agreement of Implementation
The State Government concerned will enter into an Agreement of Implementation (AOI) with the DIPP indicating the specific commitments of each implementing agency along with timelines. A draft AOI will be presented by the State along with the application for final approval. On receipt of final approval, the NIMZ will be declared by the State Government as an industrial Township under ARTICLE 243Q(1)(c) of the Constitution.
Simultaneously, the State Government will constitute a Special Purpose Vehicle (SPV) to discharge the functions specified in the policy. The CEO of the SPV shall be a senior government official appointed on a full-time basis. The SPV will include an official conversant with the work relating to pollution control/ environmental protection. There shall be a provision for suitable representation of a nominee of the Government of India (DIPP), and of the allottees and subsequently of the industrial units on the Board of the SPV.
Land allotment
Proposals for establishment of individual units / other entities in the NIMZ will be considered for land allotment and other clearances by the SPV and/or such authority to which the relevant powers are delegated. Such allotment shall be on leasehold basis.
The SPV will ensure that land in the NIMZ allotted for the permissible purpose as per the master plan will be used within the specified period of time for the specified purpose which would be indicated in the land allotment letter itself. In case the said land is not used within the specified period for the specified purpose, it shall revert back to the SPV.
Role of Central Government
The Central Government will improve/provide external physical infrastructure linkages to the NIMZs including Rail, Road (National Highways), Ports, Airports, and Telecom, in a time bound manner. This infrastructure will be created/upgraded through Public Private Partnerships to the extent possible. Viability Gap Funding through existing schemes will be provided. Wherever necessary, requisite budgetary provisions for creation of these linkages will also be made.
For the internal infrastructure in a NIMZ, the government will provide:
Viability Gap Funding (VGF): Under the Ministry of Finance ‘Scheme for Support to Public Private Partnerships in Infrastructure’ in the form of capital grant at the stage of project construction will be given as per the VGF guidelines. The total Viability Gap Funding under this scheme shall not exceed twenty percent of the total project cost. Additionally, the State Government or its agencies may also provide funding out of their budget as may be feasible.
Long term soft loans from multilateral financial institutions: Soft loans from multilateral institutions will be explored for funding infrastructure development in NIMZ. Assistance would be provided for negotiating non-sovereign multilateral loans by providing back-toback support, if necessary.
Rationalization and SIMPLIFICATION of central level business regulations
The advisory pertaining to central level environmental regulations issued by the Ministry of Environment & Forests is at Annexure–III. In respect of labour regulations, subject to the setting up of a suitable mechanism in concurrence with the Ministry of Labour & EMPLOYMENT for central level labour laws, the Central Government shall delegate the powers of inspection and enforcement to the CEO of the SPV. The Central Government will conduct periodic audit of the enforcement mechanism put in place to ensure compliance of all Labour Welfare provisions.
Job Loss Policy
The Central Government will put in place a scheme for a job loss policy to enable units to pay suitable worker compensation in the eventuality of business losses / closures, through insurance. The compensation under this instrument would be equivalent to 20 days’ Average pay for every completed year of continuous service or any part thereof in excess of six months. The SPV will facilitate, the companies that opt for it, to buy the policy at the stage of land allotment, at a premium, determined by the SPV on the basis of competitive bidding.
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The Manufacturing Policy of India is a comprehensive policy document that was released by the Government of India in 2014. The policy aims to promote manufacturing in India and make it a global manufacturing hub. The policy has several key features, including:
- Focus on Make in India: The policy focuses on promoting manufacturing in India, with the goal of making India a global manufacturing hub.
- Incentives for domestic manufacturing: The policy provides incentives for domestic manufacturing, such as tax breaks and subsidies.
- Investment in infrastructure: The policy invests in infrastructure, such as roads, ports, and power Plants, to support manufacturing.
- Skill development: The policy focuses on skill development to ensure that there is a skilled workforce available for manufacturing.
- Research and development: The policy invests in research and development to promote innovation in manufacturing.
The Manufacturing Policy of India has had a significant impact on the Indian economy. The policy has helped to increase manufacturing output, create jobs, and attract foreign investment. The policy has also helped to improve the quality of Indian products and make them more competitive in the global market.
However, the Manufacturing Policy of India also faces some challenges. One challenge is that the policy is not well-coordinated with other government policies. This can lead to confusion and uncertainty for businesses. Another challenge is that the policy is not adequately funded. This can limit the impact of the policy.
Despite these challenges, the Manufacturing Policy of India is a positive step for the Indian economy. The policy has the potential to transform India into a global manufacturing hub. The government should continue to implement the policy and address the challenges that it faces.
The way forward for the Manufacturing Policy of India is to continue to implement the policy and address the challenges that it faces. The government should also focus on improving the quality of Indian products and making them more competitive in the global market. The government should also invest in research and development to promote innovation in manufacturing.
The manufacturing policy of India is a set of government policies and initiatives aimed at promoting the growth of the Manufacturing Sector in India. The policy was first announced in 2014, and has been revised several times since then. The latest revision was announced in 2020.
The policy aims to make India a global manufacturing hub by 2025. To achieve this, the government has announced a number of measures, including:
- Providing incentives to companies that set up manufacturing plants in India.
- Investing in infrastructure, such as roads, ports, and power plants.
- Promoting research and development in the manufacturing sector.
- Training workers in the skills needed for manufacturing jobs.
The manufacturing policy has been successful in attracting investment from foreign companies. A number of major multinational companies have announced plans to set up manufacturing plants in India in recent years. The policy has also helped to create jobs in the manufacturing sector.
However, the policy has also faced some challenges. One challenge is that the Indian manufacturing sector is still relatively small compared to the manufacturing sectors of other countries, such as China and the United States. Another challenge is that the Indian manufacturing sector is still relatively labor-intensive, and there is a need to increase the level of automation in the sector.
Despite these challenges, the manufacturing policy of India is a positive step towards making India a global manufacturing hub. The policy has the potential to create jobs, boost economic growth, and improve India’s competitiveness in the global economy.
Here are some frequently asked questions about the manufacturing policy of India:
- What is the manufacturing policy of India?
The manufacturing policy of India is a set of government policies and initiatives aimed at promoting the growth of the manufacturing sector in India. The policy was first announced in 2014, and has been revised several times since then. The latest revision was announced in 2020.
- What are the objectives of the manufacturing policy of India?
The objectives of the manufacturing policy of India are to:
- Make India a global manufacturing hub by 2025.
- Attract investment from foreign companies.
- Create jobs in the manufacturing sector.
Increase the level of automation in the manufacturing sector.
What are the measures that the government has announced to achieve the objectives of the manufacturing policy?
The government has announced a number of measures to achieve the objectives of the manufacturing policy, including:
- Providing incentives to companies that set up manufacturing plants in India.
- Investing in infrastructure, such as roads, ports, and power plants.
- Promoting research and development in the manufacturing sector.
Training workers in the skills needed for manufacturing jobs.
What has been the impact of the manufacturing policy of India?
The manufacturing policy has been successful in attracting investment from foreign companies. A number of major multinational companies have announced plans to set up manufacturing plants in India in recent years. The policy has also helped to create jobs in the manufacturing sector.
However, the policy has also faced some challenges. One challenge is that the Indian manufacturing sector is still relatively small compared to the manufacturing sectors of other countries, such as China and the United States. Another challenge is that the Indian manufacturing sector is still relatively labor-intensive, and there is a need to increase the level of automation in the sector.
- What are the future prospects for the manufacturing policy of India?
The future prospects for the manufacturing policy of India are positive. The policy has the potential to create jobs, boost economic growth, and improve India’s competitiveness in the global economy. However, the policy also faces some challenges, such as the need to increase the level of automation in the manufacturing sector.
The National Manufacturing Policy (NMP) of India was announced in:
(A) 2011
(B) 2014
(C) 2017
(D) 2020The NMP aims to achieve a manufacturing sector growth rate of:
(A) 12%
(B) 15%
(C) 18%
(D) 20%The NMP identifies 12 champion sectors for focus. These sectors are:
(A) Automobiles, chemicals, electronics, pharmaceuticals, textiles, Food Processing, leather, gems and jewellery, furniture, tourism, Biotechnology, and aerospace
(B) Automobiles, chemicals, electronics, pharmaceuticals, textiles, food processing, leather, gems and jewellery, furniture, tourism, biotechnology, and information technology
(C) Automobiles, chemicals, electronics, pharmaceuticals, textiles, food processing, leather, gems and jewellery, furniture, tourism, biotechnology, and RENEWABLE ENERGY
(D) Automobiles, chemicals, electronics, pharmaceuticals, textiles, food processing, leather, gems and jewellery, furniture, tourism, biotechnology, and Nuclear EnergyThe NMP proposes to achieve its objectives through a number of measures, including:
(A) Providing fiscal incentives, such as tax breaks and subsidies
(B) Investing in infrastructure, such as roads, ports, and airports
(C) Facilitating access to finance
(D) Promoting research and developmentThe NMP has been welcomed by industry and the government. However, some critics have argued that it is too ambitious and that it will be difficult to achieve its objectives. Others have argued that it does not do enough to address the challenges facing the manufacturing sector, such as the high cost of doing business in India.
The NMP is a significant policy initiative that has the potential to transform the manufacturing sector in India. However, it remains to be seen whether it will be successful in achieving its objectives.
The NMP has been in place for over five years now. It is time to take stock of its progress and assess whether it has been successful in achieving its objectives.
There is no doubt that the NMP has had some positive impacts. The manufacturing sector has grown at a faster rate since the NMP was announced. The government has also made significant investments in infrastructure, which has helped to improve the competitiveness of the manufacturing sector.
However, there are also some concerns about the NMP. Some critics argue that it has not done enough to address the challenges facing the manufacturing sector, such as the high cost of doing business in India. Others argue that the NMP has been too slow to implement and that it has not been effective in attracting foreign investment.
Overall, the NMP has had some positive impacts on the manufacturing sector in India. However, there are also some concerns about the NMP. It is important to continue to monitor the progress of the NMP and to make necessary adjustments to ensure that it is successful in achieving its objectives.