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Learning from or repeating the past? Industrial zones in India (Part II)

On Tuesday, we looked at the disappointing performance of 2005’s SEZ Act when measured against the Government of India’s stated goals.

Will NIMZs be better for India's industry? ( Credit: Rajesh_India, Flickr Creative Commons)But the Indian government has an ambitious new plan to spur industrial growth, create 100 million jobs and increase manufacturing’s share in the GDP from 16 percent to 25 percent within the decade.  If ratified, the National Investment and Manufacturing Zones (NIMZs) will offer simplified regulation and better infrastructure to attract businesses. In this second installment of the series on India’s industrial zones, we assess its prospects.

The India Paradox: Promoting Competitive Industries in a High-Growth Country

Ivan Rossignol's picture

India’s economic growth rate in the past decade has been nothing short of spectacular.  With its GDP growth around 7 to 9 percent per year, India is the second-fastest-growing large economy in the world.  However, the country’s manufacturing sector accounts for a dismal 17 percent of its employment opportunities, as compared to 60 percent in agriculture and 23 percent in services.[1]This summer, the World Bank’s Indian Visiting Scholars Program* invited two leading academics from Harvard University to visit India and to articulate potential pathways to sustain the country’s growth trajectory. These 2 scholars are Ricardo Hausmann, Professor of Economic Development at the John F. Kennedy School of Government and Director of Harvard’s Center of International Development and Dani Rodrik, Professor of International Political Economy at the Kennedy School. While there, they interacted with the private sector and key policymakers, including senior officials of the Department of Industrial Policy and Promotion, the Planning Commission, and the Ministry of Finance.