The Government of almost all States/
Union Territories (UTs) are making all possible efforts for creating ideal
conditions for investments in every sector of their respective economies.
They are also working in coordination with Central Government to sustain
the pace of development in the country. Accordingly, they have been framing
a well structured framework of policies for attracting significant investments
into the various States/ UTs. Some of such policy initiatives are:-
1. Under the Kerala's
Industrial policy, the aim of the Government is to achieve high and
sustainable economic growth through rapid industrialization and big leap
in commercial activities, without affecting ecology and environment. The
policy seeks to create large-scale employment opportunities for the people
of Kerala and convert Kerala into an investment friendly destination.
That is, it aims to convert Kerala into a favoured destination for manufacturing,
agro processing, health services, knowledge based industries and services.
It seeks to formulate schemes to attract foreign direct investments (FDIs),
including Non-Resident Indians (NRIs) and Non-Residents Keralites (NRKs)
to channalise their investible surpluses to the State and, thus, enabling
them to harness their expertise in the key areas of manufacturing and
services. It also includes setting up of exclusive Industrial Parks for
NRI investors.
2. The
Industrial Policy of Andhra Pradesh has announced to promote Andhra
Pradesh as an attractive destination for industrial investments and foreign
investments. FDI is considered as an important way of transmitting skills,
knowledge and technology to the State and it is an important driver of
industrial performance. Thus, investors are given highest priorities in
implementing the projects in the State. The policy further seeks to improve
infrastructure in the State by facilitating investment in industrial infrastructure
in private sector. In line with such objectives, an autonomous body 'AP
Invest' is created for needs assessment and road mapping of FDIs as well
as to give special care in providing timely clearances and assistance
for setting up of industrial units.
3. In the State of Uttar Pradesh (U.P.),
the Industrial
and Service Sector Investment Policy 2004 has been announced to achieve
all round development of the State by accelerating the pace of growth
in the fields of industry, trade, commerce and services. This include
strategies like: promotion of private partnership in industrial development;
balanced development of tiny, small and heavy sector; promotion of exports;
promotion of NRI and FDI investments; assurance for security of life and
property; recognition of the role of service sector; etc. The policy recognised
that there is an immense potential for attracting investment in the State
from NRIs. Also, entrepreneurial skills and capabilities of NRIs belong
to U.P. have earned worldwide recognition. The policy thus aims to create
attractive environment for investments by NRIs in the State; to make the
procedure of investment by NRIs simpler by introducing adequate changes
in rules and procedures; to conduct a dedicated survey of NRIs to provide
them required facilities; as well as to encourage and persuade NRIs belonging
to the State to make greater investments in varied fields like land development,
infrastructure, mining, service sector; etc. All these efforts aim to
give highest priority to the proposals of Overseas Indians.
4. With a view to promoting investment
and trade, the Government of Karnataka formulates and implements the policies
of the State with respect to industrial development. It is making all
efforts to attract foreign direct investment to the State through its
progressive policies and strategies. The federal policy guidelines of
the Government of India are also applicable to projects set up in the
State. The FDI proposals approved for the State are to be monitored at
the highest level to facilitate their speedy implementation.
There is the New
Industrial policy 2006-2011 of the State which aims to promote sustained
and growth oriented industrialization, with employment, for overall socio-economic
development of the State. The other objectives of the policy are to:-
- promote diversified industrial base
with strength in both old economy and new economy fields.
- facilitate reduction of regional
imbalance in the matter of economic opportunities, employment and growth.
- promote sustained industrial growth
by facilitating accelerated flow of investments, etc.
5. Earlier Industrial
Policy of Madhya Pradesh aimed at accelerating and strengthening industrial
development in the State by attracting more capital investment. The objectives
of the policy were to:-
- place Madhya Pradesh among the ranks
of the industrially developed States.
- ensure balanced regional development
by giving additional facilities in "No Industry" Development
Blocks.
- accelerate the pace of industrial
development in the State through greater utilisation of the State's
human and natural resources.
- create more direct and indirect
employment opportunities.
- create special opportunities for
the accelerated development of rural industries.
- create new opportunities for the
development of the small scale sector.
- create opportunities to attract new
investments in the large and medium sector.
- facilitate synergistic linkages between
small scale units and large and medium enterprises.
- encourage hi-technology based industries.
- encourage investment by Non-Resident
Indians.
- encourage private sector participation
in infrastructure development, etc.
While, the new policy called the Industrial
Promotion Policy 2004 envisages on creating an industry-friendly administration,
maximizing employment opportunities, tackling industrial sickness, as
well as bolstering private sector participation. The main thrust of the
policy is:-
- establishment of a Madhya Pradesh
Trade and Investment Facilitation Corporation.
- enacting an Industrial Facilitation
Act and to change rules of business with a view to make single window
system decisive and result oriented.
- developing infrastructure for enhancing
identified industrial clusters.
- reviving closed down/sick industrial
units by granting special packages.
6. In the State of Gujarat, there is
an Industrial
Policy which has been formulated to promote sustainable industrial
development in the State. The policy aims to achieve global competitiveness
for industries in Gujarat and make it one of the most competitive destination
for investment. The objectives of the policy are to:-
- create a conducive environment for
the investors.
- equip new entrepreneurs as well as
existing enterprises with the latest information in relevant fields.
- develop the best of infrastructure
facilities by infusing private sector investment.
- empower the industrial estates to
undertake developmental responsibilities.
- enhance the quality of life in the
State.
- strengthen the mature manufacturing
segments in the State.
- promote industries which are labour-intensive
in nature so as to create large-scale employment opportunities in the
State.
- provide assistance to small-scale
industries for healthy growth.
- strengthen existing industrial clusters
and promote new clusters.
- assist small and medium industries
in getting bank finance.
- equip the industries in Gujarat to
meet with the challenges of WTO regime.
- establish Gujarat as second to none
in terms of "quality" and "brand image"; of products,
on international platform;etc.
The State realizes the importance of
attracting investments from non-resident Indians (NRIs) as well as multinational
companies. This would help the State in improving the technological standards
in the industry through technology transfer, enhancing exports, introduction
of latest manufacturing practices, development of infrastructure and generation
of employment opportunities. At the same time, the Government of Gujarat
also appreciates the problems and concerns of the NRIs when they invest
in the State. For providing them additional comfort, it is also exploring
various options that would meet the aspirations of the NRIs and the needs
of the State. In order to bridge the gap between the self-actualisation
needs of NRIs and the development requirements of the State, it is considering
to set up an Non-Resident Investment Trust Bank after obtaining necessary
approvals from Government of India and Reserve Bank of India.
7. Industrial Policies of other States
incorporating several features for investment in the States:-
Legislative Framework
The Government of various States and
UTs are enacting several legislations for promotion of investment opportunities
in their industrial set up. The most important law being, the enactment
of Industries Facilitation Act in respective States/ UTs which aims to
promote industrial development and facilitate new investments by simplifying
the regulatory framework and by reducing the procedural requirements.
This Act mainly aims to provide for the measures for speedy implementation
of industrial projects and to ensure smooth functioning of the existing
industries in the State by providing single point clearances to the entrepreneurs.
It seeks to create a conducive environment for business in the economy
so as to attract investors the world over, including investments by overseas
Indians. Some of these Acts are:-
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