A high level committee chaired by prime minister Manmohan Singh yesterday approved the draft National Manufacturing Policy that aims at increasing the share of manufacturing in GDP to 25 per cent by 2025 from the current 16 per cent.
The policy envisages creation of mega industrial zones with world class infrastructure facilities.
The policy would come up to the cabinet in a month after environment and labour concerns are resolved through inter-ministerial discussions.
The draft was prepared by the Department of Industrial Policy and Promotion in consultation with the Planning Commission and National Manufacturing Competitiveness Council.
In a release issued by his office, the prime minister said, the proposed policy measures would reduce the compliance burden on industry.
"This will send a positive message to the investing community," the release said.