3.3

A number of towns in specific geographical locations have emerged as dynamic industrial locations handsomely contributing to India’s exports. These "Industrial Clusters" rooted in history symbolise the bursting forth of the free market spirit and are essentially collective response to common problems of competitiveness. Some have become globally renowned manufacturing bases. It is necessary to grant recognition to these industrial cluster items with a view to maximize their export profiles and help in upgrading them to move up in the higher value markets.

A number of such industrial cluster towns are exporting a substantial portion of their products, which are world class. For example, Tirupur is exporting 80% of its production of hosiery. A beginning has been made to consider industrial cluster towns such as Tirupur for hosiery, woollen blanket in Panipat, woollen knitwear in Ludhiana to be eligible for the following benefits:-

Common service providers in these areas shall be entitled for facility of EPCG scheme. The recognised associations of units will be able to access the funds under the Market Access Initiative scheme in Paragraph 3.2 for creating focused technological services. Further such areas will receive priority for assistance for identified critical infrastructure gaps from the scheme on Central Assistance to States mentioned in paragraph 3.1. The units in these notified areas would be eligible for availing all the EXIM policy schemes as per their choice and the provisions of those schemes shall stand relaxed to the extent provided in this paragraph in respect of such units.

Existing industrial clusters need upgradation of services and simplification of procedures. To achieve that purpose, it is proposed to bring about synergy and convergence of various schemes for development of cluster to improve the competitiveness of the units located there.

Selected towns producing goods of Rs. 1000 crore or more will be notified as Towns of Exports Excellence on the basis of potential for growth in exports. Proposal for strengthening infrastructure, simplifying rules & procedures and developing production infrastructure relating to design, R&D packaging , logistic support as well as to provide awareness and information about international marketing will be considered under the scheme.

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