Monday, May 3, 2010

Infrastructure Investment Bottlenecks
  

The 11th Five year Plan envisages an increase in investment in infrastructure from the level of 5% of Gross Domestic Products (GDP) witnessed during the 10th Plan to about 9% of the GDP by 2011-12 ( terminal year of 11th Plan). 



The Industrial Policy of the Government is guided by the Industrial Policy, 1991. As per this policy, under the liberalized economic environment, investment decisions are taken by entrepreneurs based on techno-economic considerations which in turn depend on the initiatives of the State Governments in creating a conducive environment by way of providing infrastructure facilities and other incentives. Central Government supplements the efforts of the State Governments by way of various schemes and policies, to the extent possible.



The major decisions taken in the recently held conference of the State Industry Ministers on 17th November, 2009 were as follows:



i) To hold State Industry Ministers Conference annually.

ii) To constitute a High Level Committee of State Industry Ministers to make policy recommendations to increase industrial investments.

iii) To hold a special session with the North-East States to address the issues and challenges of industrial development in that region.

iv) To launch a new scheme for setting up industrial parks for labour intensive manufacturing sectors such as gems and jewellery, toys, sports goods, glass and glass products, ceramics, bicycles and invalid carriages, and electronic hardware.

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