Policy Measures for Improving Manufacturing Sector

The Government is continuously taking measures to improve the performance of the manufacturing sector of the country. Some such measures taken include announcement of National Manufacturing Policy (NMP), 2011, simplification and rationalization of the Foreign Direct Investment (FDI) Policy, implementation of Delhi Mumbai Industrial Corridor (DMIC) project, launching of the e-biz Mission Mode Project under the National e-Governance Plan, and creating a joint venture ˜Invest India™ in association with FICCI. Besides, incentives are given for helping industries in difficult areas through Plan Schemes of Transport Subsidy, special package of incentives for Special Category States, North-East Industrial & Investment Promotion Policy, 2007, and specific programmes like Industrial Infrastructure Upgradation Scheme, Indian Leather Development Programmes etc.

The Index of Industrial Production (IIP) reflects movements in production of manufacturing, mining and electricity. While the policy measures taken by the Government are facilitating in nature, the movements in the IIP are caused by inherent supply and demand factors that affect industrial production. During the last two years, the IIP (Base 2004-2005) increased from 170.3 in 2011-12 to 172.2 in 2012-13.

Some of the additional measures that have been considered necessary by the Government for facilitating increase in industrial production include creating a project monitoring cell for stalled infrastructural and industrial projects with high investment, and approving commencement of preparatory work on creating Chennai-Bengaluru Industrial Corridor (CBIC), Bengaluru-Mumbai Economic Corridor (BMEC) and AmritsarDelhi-Kolkata Industrial Corridor (ADKIC).

Tags: DelhiDelhi Mumbai Industrial Corridor ProjectFICCIforeign direct investmentGovernmentIndex of Industrial ProductionIndiaNational e-Governance Plan

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