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Blueprint to Industrialise North India
Context:
In an effort to address the lack of industrialisation in North India, the central government is drafting a comprehensive blueprint to boost manufacturing in the region.
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- The initiative, spearheaded by the Prime Minister’s Office (PMO), aims to bridge the economic disparity between northern and southern states by fostering industrial development and infrastructure growth.
Focus on Northern States
- The Ministry of Micro, Small, and Medium Enterprises (MSME), along with other relevant departments, will conduct a detailed study on the industrial landscape of northern states to inform policymaking.
- This follows the Department for Promotion of Industry and Internal Trade (DPIIT) approving a ₹10,037 crore program called the Uttar Poorva Transformative Industrialisation Scheme, 2024 (Unnati-2024), which is set to run for the next decade.
- The government is focusing on regions and products with high domestic and international demand but limited production capacity.
- Incentives are being considered to establish industrial hubs across northern states, including Uttar Pradesh, Bihar, Rajasthan, Punjab, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, and others.
Leveraging Regional Potential
- Kanpur, once known as the “Manchester of the East” for its thriving textile and leather industries, and Jammu & Kashmir, with its rich tradition of handicrafts, handlooms, and horticulture, are seen as prime candidates for industrial development.
- Similarly, eastern states like Odisha and Jharkhand hold significant potential, given their abundant natural resources and historical industrial significance.
- There is immense scope for industrialisation in these regions. The industrial growth of one state often fuels economic benefits across the country.
- For instance, Jharkhand’s mineral-driven growth has positively impacted multiple states.
Addressing Regional Disparities
- The government’s region-specific focus comes amid rising concerns among southern states, which have long argued for a more equitable share of Central tax revenue.
- States like Karnataka, Tamil Nadu, and Kerala have voiced dissatisfaction over allocations, citing their larger contributions to the country’s GDP.
- This move to promote industrial growth in northern states is seen as a step toward balancing economic development across the country.
- However, experts stress that the success of such initiatives depends on keeping raw material costs low and ensuring efficient delivery of finished goods to markets.
- Industrial hubs will thrive only if businesses remain competitive by minimising production and logistics costs.
Cyclical Growth and Workforce Dynamics
- Historically, industrial growth has been cyclical, often relying on workforce migration across regions.
- Growth in some southern states was driven by labor from the North. Similarly, Bhilai’s industrial success was the result of nationwide labor mobilisation and targeted investment.
The government’s industrialisation push for North India is poised to unlock untapped potential in the region. If executed effectively, it could pave the way for a more balanced and inclusive economic landscape for the nation.
