News: Investment regions listed to spur growth

(TT 21/07/2006) New Delhi - The government has drawn up a proposal to create investment regions in the country specialising in textiles, infotech, auto components, pharmaceuticals, chemicals and petrochemicals and food processing.

These industries are part of the thrust sectors that have the potential to create jobs immediately and boost economic growth.

Prime Minister Manmohan Singh today asked the commerce and industry ministry to prepare a policy proposal for the cabinet to consider, using inputs from the Investment Commission and the National Manufacturing Competitiveness Council reports.

Industry captains, including Ratan Tata, Azim Premji, Rahul Bajaj, Jamshyd Godrej, Sunil Kant Munjal and Kiran Mazumdar-Shaw, were present at the Prime Minister’s trade and industry council meeting that discussed ways to generate more jobs and raise the economic growth rate. Singh also asked these reports to be sent to the chief ministers of all states for feedback.

Commerce minister Kamal Nath said with the two reports by the National Manufacturing Competitive Council and the Ratan Tata-headed Investment Commission as the basis, the ministry would draw up the national manufacturing initiative for cabinet approval.

He said the government had drawn up a proposal to develop seven or eight investment regions in the country. While the Centre would provide infrastructure such as road, rail and port connectivity, the state governments and private sector firms would have to make the required investments.

Nath said, “Since we do not have the requisite resources to provide world-class infrastructure in the entire country, we need to concentrate our efforts on a few areas which have the potential for growth. Some brownfield and greenfield projects could be developed in different parts of the country with world-class infrastructure being provided by the Centre and the state governments concerned.”

He said, “These investment regions have the potential to take the growth rate to 12 per cent from 8 per cent and could attract domestic and foreign investment up to Rs 100,000 crore.”

The Prime Minister also asked industry to take a more serious look at investment and trade opportunities in south Asia, Southeast Asia, West Asia and central Asia.