Government to roll out manufacturing policy soon

The government will shortly roll out its national manufacturing policy, which seeks to create National Manufacturing and Investment Zones, or NMIZs, to raise the share of the activity in the country's GDP, a finance ministry official said.

A panel headed by Prime Minister Manmohan Singh had granted an in-principle nod to the policy in June. The final policy is likely to come loaded with tax sops, including capital gains exemption for small and medium enterprises for their investments in these zones.

Spread over 2,000 hectares, or about 8 sq km, these zones would be in line with the model adopted by China to lift the share of manufacturing to 25% from 16% at present.