India is planning to establish seven national manufacturing and investment zones (NMIZ) to promote manufacturing industries. The concept promises ease of compliance and quick access to infrastructure. Government officials hope to create 100 million jobs over the next decade and to help spur growth in Indian manufacturing sector.
Currently, manufacturing only contributes 15% to 16% of Indian GDP, compared to 34% in China, 28% in South Korea and 27% in Indonesia. The goal of the new policy is to raise the share in India to 25% by 2022.
It’s an open secret that India is less hospitable place for entrepreneurs compared to other major emerging markets. You need to jump lot of hoops to set up a private limited company. Ironically, you need to jump even lot more hoops to close a private limited company! Startups in India are not for soft hearted people.
Recently I read about series of problems faced by Vishwaprasad Alva who is the founder of Skanray, the company that makes X-ray machines. Concept like NMIZ would definitely be a godsend for entrepreneurs like Vishwaprasad Alva. You can read more about Alva’s struggle at http://online.wsj.com/article/SB10001424052970204479504576639233537716542.html. If you are an aspiring entrepreneur in India, I am sure you will be outraged when you read the Wall Street Journal article.
- $35 computer from India!
- Welcome 2012!