The Centre on Thursday told the states to spare more land for developing manufacturing zones across the country, since the manufacturing sector has immense potential to create jobs and spur growth.
In a meeting with the state chief secretaries and principal industry secretaries, Commerce and Industry Minister Anand Sharma also emphasised on the need for land to set up industrial corridors such as the Bengaluru-Chennai Corridor and the Eastern Corridor.
Chennai is home to export-oriented manufacturing operations of multi-national companies like Hyundai Motors and Nokia and development of industrial corridors there is expected to boost manufacturing and export.
The manufacturing sector has been worst hit in the recent months and became virtually stagnant in the first three months of the fiscal year as against the growth of over 7 per cent in the corresponding period last year.
Besides, slowdown in the sector is spreading to other high growth areas of the economy, like the service sector. According to government data, trade, hotels, transport and communication sectors have also slowed down this year, as a natural corollary to the sluggishness in the manufacturing sector. Land acquisition, forest and environment clearances have been the major issues coming in the way of new industries being set up in India.
Sharma emphasised on creation of land banks in the country and said states must spare more land for manufacturing units. The Centre is planning to devote at least 30 per cent of the total land to such zones.
