Anand Sharma in Colombo on Saturday. (PTI)
Colombo, Aug. 4 (PTI): Against the backdrop of a sharp drop 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 per cent of GDP by 2020.
Commerce minister Anand Sharma said the notification for setting up the National Manufacturing and Investment Zones (NMIZ) was 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 a sharp decline in manufacturing growth to 0.3 per cent during the January-March quarter from 7.3 per cent in the corresponding period of 2010-11.
Sharma said there were 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 per cent by 2020 from the present 16 per cent.
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 such as 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.
India today said it expected exports, which have witnessed contraction for two consecutive months, to turn around by September-end.
“We are monitoring the situation. I think with the steps which have been taken and with the announcements, there will be some revival in exports and turnaround this autumn,” Sharma said.