NITI Aayog-Led Team To Devise National Master Plan For Development Of Manufacturing ClustersAn Indian factory (MANPREET ROMANA/AFP/GettyImages)

The government has formed a committee under NITI Aayog CEO Amitabh Kant to devise a National Master Plan for a major revamp of India’s manufacturing strategy. The plan, being handled by the Department of Industrial Policy and Promotion (DIPP), will target to increase the share of manufacturing in the country’s economy from 18 per cent to 25 by 2025.

The master plan will involve identification of infrastructure support facilities, forward and backward linkages, provide incentives on electricity tariff, flexible labour laws, open access to power supply among other things. It will also review major infrastructure projects such as Sagarmala and the upcoming industrial corridor to find out if these developments are in line with the overall strategy.

One of the most important targets of the team will be to formulate a single window system for over 20 clearances that a developer requires from the state and central government before setting up a manufacturing plant.

The government will put on hold new developments in this field till the team assesses the capacity utilisation of already existing clusters. The government wants to make sure that development of new clusters is demand led.

"Creation of manufacturing zones should be in response to a demand… We can save lakhs of crores (of rupees) if we stop taking up unnecessary projects and first utilise existing capacity," The Economic Times quoted a government official as saying.

This master plan will help in the efficient planning of new clusters and aligning projects that are in the pipeline with the overall manufacturing strategy of the country.

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