New National Manufacturing Policy

Facing criticism over lack of decision making on economic issues, the United Progressive Alliance (UPA) Government has approved its ambitious National Manufacturing Policy (NMP) that seeks to create a massive 100 million additional jobs in the manufacturing sector by 2025 as well as create large sized industrial zones with easier compliance and labor laws.
Enhancing Share of Manufacturing in GDP
The NMP seeks to enhance the share of manufacturing in the Gross Domestic Product (GDP) to 25 per cent within a decade and create 100 million jobs in manufacturing as part of the inclusive growth agenda of the UPA,
The new policy, cleared by the cabinet, seeks to boost the stagnating manufacturing sector to contribute at least 25 per cent of the national GDP by 2025. The policy has been discussed for almost a year but was stuck due to objections from the environment and labor ministries.
The share of manufacturing in India's GDP has stagnated at 15 to 16 per cent since 1980 while the share in comparable economies in Asia like China, South Korea, Indonesia and Malaysia is much higher at 25 to 34 per cent. Also, the manufacturing sector has a multiplier effect in creation of two to three additional jobs in the allied sectors.
The policy seeks to empower rural youth by imparting necessary skill sets to make them employable. Sustainable development and technological value addition in manufacturing have received special focus.
The policy envisages specific interventions broadly in the areas of industrial infrastructure development and improvement of the business environment through rationalization and simplification of business regulations. In addition, development of appropriate technologies, especially green technologies for sustainable development, and skill development of the younger population are envisaged.
National Investment and Manufacturing Zones
The policy will be a partnership between the central and state governments. The former will create the policy framework, provide incentives for infrastructure development on a public private partnership basis through appropriate financing instruments, while state governments will identify the suitable land and be equity holders in the National Investment and Manufacturing Zones (NIMZs).
Large scale China style industrial zones will be set up in the form of national investment and manufacturing zones — green field integrated industrial townships with a land area of at least 5,000 hectares. Industrial townships are proposed to be self governing and autonomous bodies and managed by a special purpose vehicle.
Seven regions under the Delhi Mumbai industrial corridor have been identified as NIMZ in the states of Gujarat, Maharashtra, Haryana, Rajasthan, Madhya Pradesh and Uttar Pradesh.
While the NIMZs have been identified, the proposals apply throughout the country wherever industry is able to organize itself into clusters. The first phase of the NIMZ will be established along the Delhi Mumbai industrial corridor which will see early results in the next few years.
Improving Business Regulatory Environment
A defining feature of the policy has been the endeavor to improve the business regulatory environment by providing single window clearances. In order to protect the interests of labor in the eventuality of a closure of a unit, a suitable mechanism has been devised using innovative job loss policy and sinking fund to insure workers against such loss.
Green manufacturing has received a special attention. Also, small and medium enterprises will be given access to this patent pool up to a maximum of Rs 20 lakh for acquiring patented technologies.

Sohrabuddin Fake Encounter Case

The Gujarat Chief Minister Narendra Modi received yet another jolt when the Supreme Court directed the Gujarat Government to pay compensation to the next of kin of Sohrabuddin, who was killed in a fake encounter. The Court further stated that payment of compensation could not be delayed any further, and asked why the State Government is using delaying tactics in paying compensation when it has already admitted that it was a fake encounter.

Satisfying Gujarat Government's Attitude
The comment by the apex court clearly indicates that it is not satisfied with the State Government's attitude. The decision about the amount of compensation has been left to the State Government. This was done at the request of the Gujarat Government counsel, but the court ordered that the apex court should be informed of the amount the State Government decides to give to Sohrabuddin's brother.

It is clear that the apex court does not desire to intervene in the State's administrative affairs, but going by the attitude and inclination of the Modi Government, the court desires to keep an eye on the case.

It is worth mentioning that the Gujarat Government had admitted in November 2005 that Sohrabuddin was killed in a fake encounter by the Gujarat Police. Several senior officers were arrested; yet the State Government paid no compensation to the next of kin of Sohrabuddin. Not only was Sohrabuddin killed, his wife Kauser Bi was also murdered, and her dead body was consigned to flames by the state police. Yet, the State Government paid no compensation in any of the cases.

Victims of Communal Riots
The truth is that the State Government continues to avoid payment to victims of communal riots that broke out in the state in wake of the Godhara incident, leading to genocide of Muslims. No one, in fact, knows what happened to the large amount of compensation that was provided by the Union Government for providing relief to riot victims. Muslims in Gujarat continue to complain that they are yet to get any compensation. In this connection, the apex court has admonished the State Government on several occasions. It may, perhaps, be because of this that the apex court also desires to keep an eye on it.

The Supreme Court has also given an indication that it is only happy with the investigation being conducted by Geeta Johri, a DGP of Gujarat cadre, into the involvement of state police officers in the fake encounter. A party to the prosecution, Rubab Sheikh had raised queries on the investigation not being impartial.

As a matter of fact, since the case is being investigated by a police officer of the Gujarat cadre, questions have continued to fly ever since the investigation commenced. It can be easily understood that under the circumstances, the investigation can be influenced. At the same time, the state government may deprive the next of kin of Sohrabuddin of compensation and also attempt to save its police officers.

Hard Attitude Needed
The decision to hand over the investigation to the Special Investigation Team is a welcome one, which may also give a ray of hope of getting justice to other Gujarat riots victims. Cases of fake encounters have alarmingly risen in our country in recent times.

In this regard, it has become necessary for the Government to adopt a hard attitude against such criminal activities of the police. But going by the attitude of the State Government to support its police officers, judiciary needs to adopt a hard stance in such cases. The direction given to the Gujarat Government in the Sohrabuddin fake encounter case is evidence of the hard stance adopted by judiciary in such cases.