National Manufacturing Policy, National Investment and Manufacturing Zones (NIMZ)

• Creation of NIMZs as mega investment regions equipped with world-class infrastructure has been proposed as a major policy instrument.
•  The National Investment and Manufacturing Zones (NIMZ) proposed under the National Manufacturing Policy will be managed by a special purpose vehicle, headed by a government official and having experts, including those on environment. The industrial townships will be self-governing and autonomous bodies. Single window clearance will be provided to improve the regulatory environment. A job loss policy/sinking fund will be introduced to protect the interest of labour in the event of a unit's closure within the zone.
• The policy was based on the principle of industrial growth in partnership with states. The central government will create the enabling policy framework, provide incentives for infrastructure development on a private-public partnership basis through appropriate financing instruments while state governments will identify suitable land and be equity holders in the NIMZs.
• Share of manufacturing in the country's gross domestic product has stagnated at about 16% since 1980 while the share in comparable economies in Asia such as China, South Korea, Indonesia and Malaysia stands at 25% to 34%.
• The first phase of the NIMZ will be set up along the Delhi-Mumbai Industrial Corridor and is expected to come on stream in the next few years. The DMIC project covers six states including Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Maharashtra and Gujarat, which account for 43% of the country's GDP, 50% of industrial production and exports and 40% of total workforce. The government estimates that the project will offer employment to over three million people.