Indian Government To Set Up Five Manufacturing Investment Regions In Effort To Spur Growth

The Indian Government is planning to set up five manufacturing investment regions (MIRs) to continue to improve growth in the manufacturing sector.

Commerce and Industry Minister Kamal Nath said that foreign direct investment inflows into the manufacturing sector had risen by 75 percent to more than $2 billion during the last year.

“The initiative on Manufacturing Investment Regions is being coordinated by Department of Industrial Policy & Promotion. The Manufacturing Investment Regions are proposed to cover around 100 square kms being larger than Special Economic Zones,” Nath said. “The units located within these regions would get the benefit of world-class infrastructure but no specific fiscal initiatives.”

According to Nath, to achieve the government's target of 8-10 percent GDP growth, 12 percent growth in the manufacturing sector - covering all industrial activities except power, water supply and mining - would be required.

The latest data showed that manufacturing activity in India grew by 10.4 percent in April and 12.2 percent in May.