By Kartik Goyal, Bloomberg
NEW DELHI: An Indian Cabinet panel on 8 March approved a policy to boost investment in the country’s oil, chemicals and petrochemicals sector, Finance Minister Palaniappan Chidambaram said.
The panel, headed by Prime Minister Manmohan Singh, decided to set up “investment regions” for the oil and chemicals businesses, aimed at making the country a hub for domestic and international markets.
There won’t be more than five such zones, Chidambaram said.
“Such integrated chemical regions are propelling the growth of this segment of industry in various parts of the world,” Chidambaram said. They would boost manufacturing, augment exports and generate employment.
India is seeking to emulate China’s success at building up its manufacturing sector by setting aside special economic zones to encourage investment. Companies are given tax and other incentives to set up facilities in the zones.