Did you know that a manufacturing unit needs to comply with nearly 70 laws and regulations and file as many as 100 returns a year? I'm not exaggerating; in fact I didn't come up with those numbers; the government did- in an acknowledgement of how a complex regulatory environment along with inadequate infrastructure and the unavailability of skilled manpower have constrained the growth of manufacturing in India. And so days before we entered the New Year, the government announced a new, ambitious policy – the National Manufacturing Policy- at the heart of which lies the establishment of national investment and manufacturing zones or NIMZs
An NIMZ is a
- Green field industrial township
- Of at least 5000 hectares in size
- To be managed by a SPV headed by a government official
- To be self-governing and autonomous
- To enjoy certain relaxations in labour and environmental regulations
- Entitled to a few fiscal incentives
Industry has given the NIMZ proposal a warm welcome. Anand Mahindra tweeted describing it as an 'initiative with vision and strategic intent'. ITC's YC Deveshwar called it 'one of the most significant developments since the economic reforms of 1991'. He said the creation of national investment and manufacturing zones 'will power a new paradigm of competitive growth in the country'. CII President B Muthuraman said 'NIMZs have better and far more progressives polices than SEZs'.
The intent is noble - to raise the contribution of manufacturing from the current 15% of GDP to 25% and create 100 million jobs. The reception has been warm. Now it's all about the implementation. And that's where we often get stuck, don't we? Well to find out if industry's expectations will be fulfilled, CNBC TV18's Menaka Doshi speaks to a guest who has deep expert knowledge of such policies – VK Jairath, Former Chief Industries Secretary, Maharashtra and Abhaya Agarwal, Head of the PPP Business at E&Y
New Year, New Manufacturing Policy! - CNBC-TV18 -
An NIMZ is a
- Green field industrial township
- Of at least 5000 hectares in size
- To be managed by a SPV headed by a government official
- To be self-governing and autonomous
- To enjoy certain relaxations in labour and environmental regulations
- Entitled to a few fiscal incentives
Industry has given the NIMZ proposal a warm welcome. Anand Mahindra tweeted describing it as an 'initiative with vision and strategic intent'. ITC's YC Deveshwar called it 'one of the most significant developments since the economic reforms of 1991'. He said the creation of national investment and manufacturing zones 'will power a new paradigm of competitive growth in the country'. CII President B Muthuraman said 'NIMZs have better and far more progressives polices than SEZs'.
The intent is noble - to raise the contribution of manufacturing from the current 15% of GDP to 25% and create 100 million jobs. The reception has been warm. Now it's all about the implementation. And that's where we often get stuck, don't we? Well to find out if industry's expectations will be fulfilled, CNBC TV18's Menaka Doshi speaks to a guest who has deep expert knowledge of such policies – VK Jairath, Former Chief Industries Secretary, Maharashtra and Abhaya Agarwal, Head of the PPP Business at E&Y
New Year, New Manufacturing Policy! - CNBC-TV18 -
