The Survey has called for specific measures including resolution of land availability issues and focus on high value-added industries to enhance the contribution of the manufacturing sector in India's GDP.
India is set to create its own versions of China-style mega industrial cities peppered across the country equipped with production units, public utilities, residential areas, schools and hospitals.
Last year, the government cleared a national manufacturing policy (NMP) paving the way for setting up of large townships.
"For the NMP to successfully meet the objective of 25% share for the manufacturing sector in GDP, certain specific measures are required," the Survey said. It added that there was a need to resolve the issue of availability of land for industrial and infrastructure use.
"NIMZs are a key tool for facilitating the growth of manufacturing sector, which cannot take off in the absence of a standardised approach to land acquisition," it said.
Each of these towns or national investment and manufacturing zones (NIMZs) would be spread across 5,000 hectares or 12,500 acres on an average. Some these will subsume special economic zones (SEZs), the existing dedicated export oriented duty free enclaves.
The policy, which has been in the works for the last two years, is aimed augmenting manufacturing's share in India's GDP from about 17% to 25% in the next 15 years.
The policy will allow for simplification of business regulations, simple and expeditious exit mechanism for closure of sick units, financial and institutional mechanisms for technology development among others.