Karnataka has pitched for two more national investment and manufacturing zones (NIMZs), one each at Gulbarga and Kolar, besides the one approved at Tumkur, according to Additional Chief Secretary, Department of Industries & Commerce, M.N.Vidyashankar.
The special zones will house manufacturing clusters as part of a national initiative to rev up the sector, Mr. Vidyashankar said at the Karnataka Manufacturing Summit organised by the State arm of the Associated Chambers of Commerce & Industry here on Friday.
The one coming up on 12,500 acres of land at Tumkur will predominantly host component makers for automobile, aerospace and allied sectors. This is among the nine NIMZs identified across the country to start with under the National Manufacturing Policy of October 2011.
Among others, the policy aims to raise the manufacturing industry's share in the GDP from the current 16 per cent to 25 per cent of the GDP by 2022.
Listing out Karnataka’s own measures in the direction, Mr. Vidyashankar said the State was drafting the next five-year industrial policy, starting 2014. It would have strong inputs from the task force on manufacturing.
Stopping a slide
Agriculture Minister Krishna Byre Gowda observed that the manufacturing sector was showing an alarming slide towards sub-15 per cent in the past two years, even as supporting measures were being put in place. He wondered how India can become an economic super power when its growth engine was foundering. In comparison, China’s sector was shining with a 34 per cent share of its GDP and 13 per cent of world manufacturing.
Within Karnataka, too, there are sharp regional imbalances and skewed growth, with 35 per cent of manufacturing concentrated around Bangalore and much of the rest at 0.5 per cent.
A proposal was to scatter certain low-end sectors like garments and domestic local language BPOs away from Bangalore.
Vinod Nowal, Chairman of ASSOCHAM’s southern regional task force on industry, said industry needed strong facilitation from the government.
ASSOCHAM and Yes Bank are conducting a survey on Karnataka’s industrial scene; and preliminary results show a dismal feedback back from industry, said Vikram Parekh, Assistant Vice-President of Yes Bank. Karnataka scores only in skilled manpower and good communication, he said.
