Indian manufacturing mega-parks to create 100 million jobs

The Indian government has passed a manufacturing policy that it claims will generate 100 million jobs over the next 10 years.

The policy, announced by Indian Trade Minister Anand Sharma, will make way for seven new industrial ‘zones’ or mega-manufacturing parks.

These parks will reportedly make way for lower taxes and faster permits for manufacturers setting-up there, and will also make it easier for businesses to comply with national labour laws.

These zones will measure a minimum 12,355 acres each, with the locations for the zones to be chosen by state governments, who will have shares in the zone alongside private investors.

A Bloomberg report says the government has also committed to setting-up a fund to compensate workers if they are made redundant. 

“The idea is to raise the share of manufacturing to 25 percent by 2022 and create jobs,” Sharma said, according to Bloomberg.

“The government recognises that the manufacturing sector has a multiplier effect in creation of two to three additional jobs in allied sectors.”

The government has also approved 15 new manufacturing mega-parks for food processing, with each park housing 30 to 40 separate plants, according to Food Production Daily.

These food processing areas are designed to boost efficiency and output, and slash the amount of waste currently output by India’s food processing sector.

India’s manufacturing output as a whole has been rising alongside China’s for decades, with the former country struggling to keep up over the last few years. 

The new Indian manufacturing policy will aim to hike the country’s manufacturing shares in the overall economy from the current 16% to 25% by 2022. Rival countries including China, Thailand and Malaysia enjoy a 25% minimum manufacturing share. 

Image: regulatorycompliancesa.org

 

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