The Union Cabinet on Tuesday approved a much-awaited National Manufacturing Policy that sets the ground for India to compete with China on a number of counts by creating its own matching versions of mega industrial cities that would aim to spin 100 million jobs over the next 15 years.

Industrial leaders cheered the policy under which a special purpose vehicle (SPV) would be created under the Companies Act for each industrial city node, tasked with dual responsibilities of development authority and municipal administration.

"This is a very important step. It will create a fantastic ecosystem for the industry that would create millions of jobs. If we want the economy to grow at 9% to 10% on a sustained basis, it is imperative that the share of manufacturing in our GDP grows from the current levels to about 25%,” Hari S Bhartia, co-chairman and managing director, Jubilant Life Sciences Ltd and former president of Confederation of Indian Industry (CII), told Hindustan Times.

The policy, which has been in the works for the last two years, is aimed augmenting the share of manufacturing in India’s GDP from about 17% to 25% in the next 15 years.

Commerce and industry minister Anand Sharma, who has piloted the policy, said: “The land for these zones will preferably be waste infertile land not suitable for cultivation.”