The A&N Islands are still
at the infant stage of industrial development and have been declared as
an Industrially Backward Region Category-'A' by the Government of India.
The pace of industrial growth in the A&N Islands has been slow mainly
due to the locational disadvantages and lack of infrastructural facilities.
There are 1172 small scale
industrial units in this UT as on 31.3.96. The type of Small Scale Industries
and its geographical distribution has been shown in Annexure -I. The growth
of the industries since 1978 has been shown in Annexure-II. The total employment
generated in the industries sector is around 11000. Besides, there are
five medium scale unit out of which four are registered with the Director
General of Technical Development (DGTD) is shown in Annexure -III. There
are no large scale industries in this UT. Three of the medium scale units
are engaged in veneer and plywood. One unit is engaged in wood sawing and
one unit in production of industrial gases viz., oxygen and nitrogen. These
include the Chatham saw mill in Government Sector.
Industrialisation is a "sine
qua non" of economic progress. No other activity in the modern world is
more closely linked with or more adequately reflects the status of a country's
development. The reforms process and new industrial policy initiated by
the Government of India in the year 1991 has seen a major shift towards
economic liberalisation covering all segments of the economy including
industries, finance, domestic and foreign trade and foreign investment.
The reforms include major policy changes such as delicensing of a large
number of Industries, opening of various sectors for private investment,
and automatic approval of foreign investment in a number of fields. These
new policy initiatives require the state government to play a major role
in catalysing foreign and domestic investment in diverse areas, facilitate
reforms process in the matters relating to States and U.T.'s for realising
the policy parameters.
The A&N Administration had formulated an Industrial Policy in the year 1988 which helped in creating investment in Small and Tiny Sector. However the Industrial growth was
very modest and slow in view of the absence of attractive package of incentives
and concessions to new industrial ventures. In view of these new developments
and changing economic scenario, the A&N Administration has pronounced
a new Industrial Policy-1996. The main policy resolutions of the new Industrial
Policy are :-
- To bring in line the Industrial Policy of the A&N Administration
with the new industrial policy of the Government of India.
- To evolve an integrated approach towards the industrial development of the Island. The policy seeks to have a balanced development of industries with special focus on the
Tiny, Cottage & SSI Sector giving emphasis on the economic and commercial exploitation of the natural resource of the Island in such a manner so as not to disturb the overall ecological balance of the region but at the same time ensure maximum value addition within the Islands. Industries in the large and medium sector set up for the development of infrastructure
and in major thrust areas would also been encouraged.
- To promote industries which use locally available raw material to produce high value added products.
- To enhance the existing infrastructural facilities to stimulate faster growth of industry.
- To promote industrial growth keeping in mind the interest of the local people in the matter of employment opportunities and gainful self employment.
Comparative Advantages and Disadvantages of the Territory:
The U.T. of A & N Islands has certain distinct advantages for development of industries as detailed below:-