Industrial policy also referred as IP can defined as the set of actions and plans declared by the government along with the suitable strategies and efforts to achieve the mentioned plans, thus, making the development of the various sectors of economy. Therefore Industrial policy can be considered as an important indicator of the economic development of the country.
Industrial policy also denotes the economic development of the country as it sets the guidelines and encourages the upcoming entrepreneurs for establishing new industries in the country. It also welcome the investors from other nations to establish their set ups in the country by offering them the relaxations at various levels.
At present the Industrial, Investment and Infrastructure Policy of Maharashtra 2006, is enforced by the government of Maharashtra in the state and is valid upto March 2011.
Maharashtra occupies a position of prominence in India. It has 10% of the country’s geographical area (0.3 Million Sq. Kms) and 10% of country’s coast line (720 Kms). 43% of its population lives in urban areas as against the country’s 28%. It contributes over 13 % ofNational GDP and its Per Capita Income is 39% higher than the country’s Per Capita Income. Its 96.88 million people (9.4 % of country’s population) produce over 19% of the country’s National Output. Maharashtra has been in the forefront of economic development and is often called the economic powerhouse of the country. With its proactive policies, theState continues to occupy the dominant position amongst the industrially advanced States in India.
Maharashtra has been in the forefront in sustaining industrial growth and in creating environment conducive to industrial development. Investment-friendly industrial policies, excellent infrastructure and a strong and productive human resource base have made it a favoured destination for the manufacturing, export, distribution and financial service sectors. It has achieved 7.1 % average growth in the last decade. The State’s economy has shown increasing signs of maturity. Its Services Sector contributes 61% and its Industry Base contributes 26% of the GSDP. The State contributes 40% of the National Fiscal receipts. Furthermore, it has the largest share of public funds for the development of industrial and social infrastructure.
The State offers excellent infrastructure - road length of 246,000 kms and railway lines of 5,987 kms. Endowed with a coastline of 720 Kms, Maharashtra has several natural ports. The two principal ports, the Jawaharlal Nehru Port, and the Mumbai Port are located in Mumbai and together handle the largest proportion of the country's foreign trade. It has three international airports and domestic airports at all major cities. Additional international airports have been planned at Navi Mumbai and Pune. Most major international destinations are linked to Mumbai by direct flights. Maharashtra has the highest power generating capacity of 15,210 MW, reliable, cost effective telecom connectivity, abundant water availability and over 250 industrial parks spread over 52,000 hectares.
The State’s well diversified and highly productive human resource with positive work culture, excellent educational facilities, quality infrastructure thriving partnership with enterprising entrepreneurs, backed by continuity and consistency in Government policies on investments have made Maharashtra “First Choice Destination” of the Domestic as well as Foreign Investors. The State has attracted highest FDI in Country (22%) between 1991and March 2006 with 3893 proposals having committed investment of Rs 56628 crore.
In addition 13366 IEMs have been filed between 1991 and June 2006 for industrial investment of Rs 3,03,749 crore. Of these, 6012 projects with capital outlay of Rs 93294 crore are operational and have employed approximately 5.89 lakh people. Maharashtra’s forward looking IT policy has been well received in the IT sector. 25% of the top 500 software companies in India are based in Maharashtra. 10 of the top 20 Software and Services Exporters in India have operations in the State.
Maharashtra has 30 Public IT Parks and 177 Private IT Parks, which provide employment to 30% of the country’s IT, professionals. Maharashtra accounts for 32% of Internet subscribers, 35% ofnational PC market and peripherals. Maharashtra contributes over 20% of the totalsoftware exports from India.
Maharashtra also occupies the leading position in respect of institutional finance with a multitude of scheduled commercial banks, co-operative banks and non-bank financial institutions (NBFCs) and has the head quarters of the Reserve Bank of India and almost all the Public and Private Sector Banks and Financial Institutions. Maharashtra stands first in the country in respect of both aggregate bank deposits and gross bank credit.
Mumbai occupies a unique place, not only in Maharashtra but the entire country as the financial and commercial capital. Mumbai houses the two largest stock exchanges of the country and 70% of all stock market transactions take place here. This city alone contributes over 33% of the country’s Income Tax and accounts for over 5% of the country’s GDP. Globalization has brought increased business opportunities to Mumbai from foreign companies, which want to reap the benefits of India's large talented and highly knowledgeable workforce and to access its capital, commodity and financial markets. This trend supports Mumbai's emergence as a Regional Financial Hub on the global map.
The State has entered into the next phase of economic reforms, with emphasis on structural changes in addition to fiscal incentives for the promotion of industry and balanced regional growth. This has coincided with increasing global competition and rapid technological changes, which pose new challenges for industry. The Industrial, Investment, Infrastructure Policy 2006 therefore aims at ensuring sustainable industrial growth through innovative initiatives for development of key potential sectors and further improving the conducive industrial climate in the State, for providing the global competitive edge to the State’s industry.
Policy Objective:“To achieve higher and sustainable economic growth with emphasis on balanced regional development and employment generation through greater private and public investment in industrial and infrastructure development.”
Policy Targets:• Target Industrial Sector growth rate of 10% by 2010
• Target Service Sector growth rate of 12% by 2010 and
• Additional Employment Generation of 20 lakh by 2010
Policy Validity: 31st March 2011
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