National Investment and Manufacturing Zones

National Investment and Manufacturing Zones

National Investment and Manufacturing Zones


  • NIMZ stands for National Investment and Manufacturing Zones. These are special areas in India that aim to attract investments and promote manufacturing. They provide good infrastructure and support for businesses.
  • The National Investment and Manufacturing Zones Authority (NIMZA) is the regulatory body for NIMZs.
  • NIMZs are different from Special Economic Zones (SEZs), which have their own goals and benefits. NIMZs are regulated by specific organizations that plan and manage them.
  • They are industrial townships developed by the Government of India.
  • NIMZs are designed to provide a conducive environment for businesses to operate. This includes world-class infrastructure, skilled labor, and access to markets.
  • The National Investment and Manufacturing Zone in India is governed by the National Investment and Manufacturing Zones Act 2000. 
  • The Ministry of Commerce and Industry is the nodal ministry for NIMZs.

 Focus Areas of NIMZ 

  • To provide a conducive environment for businesses to operate.
  • To attract investment from domestic and foreign companies.
  • To create jobs and boost economic growth.

How does NIMZ Work?

  • NIMZs are developed by GoI in partnership with state governments and private sector firms.
    • The government provides land, infrastructure, and other facilities. 
    • The private sector companies invest in the development of the zone. 
  • They offer various incentives and facilitations to attract investments.
    • This includes tax benefits, simplified regulatory procedures, and access to a skilled workforce.
  • NIMZs provide a comprehensive ecosystem that promotes economic development in the designated regions.
  • The NIMZs are envisaged as integrated industrial townships with state-of-the-art infrastructure, land use based on zoning, clean and energy-efficient technology, necessary social infrastructure, skill development facilities, etc. to promote world-class manufacturing activities.
  • At least 30% of the total land area proposed for the NIMZ will be utilized for the location of manufacturing units.
  • The land for these zones will preferably be waste infertile not suitable for cultivation, not in the vicinity of any ecologically fragile area, and with reasonable access to basic resources.
  • On receipt of final approval, the NIMZ will be declared by the State Government as an industrial township under Article 243Q(1)(c) of the Constitution.
  • The central government provides external physical infrastructure linkages to the NIMZs including rail, road, ports, airports, and telecom, in a time-bound manner and also provides viability gap funding wherever required.
  • The State Government will constitute a Special Purpose Vehicle (SPV) to discharge the functions specified in the policy.
  • The SPV will prepare a strategy for the development of the zone and an action plan for self-regulation to serve the purpose of the policy.
  • The Department for Promotion of Industry and Internal Trade (former DIPP) is the nodal agency for NIMZ.

Difference between SEZ (Special Economic Zones) and NIMZ

Legislative BackingUnder the National Manufacturing Policy (NMP) in 2011Under the Special Economic Zones Act, 2005
Minimum Area5000 hectares10-1000 hectares (depending on the sector)
Maximum AreaNot Specified5000 hectares
Income tax exemption To small and medium enterprises100% for the first 5 years,
50% for the next five years
Environmental Impact AssessmentProvided by the state governmentBy the project developer
National Investment and Manufacturing Zones

Related Links:

Design Linked Incentive (DLI) SchemeNational Logistics Policy
Semicon India ProgrammeStartup India Scheme