Final industrial policies
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Transcript of Final industrial policies
By,
Khalid Bin Rahiem
Madhusudhan
Kalhari
Mohammed Saqib
• Industrial policy means Rules, Regulations , Principles, Policies and Procedures laid down by government for regulating, development, and controlling industrial undertakings in the country.
• It prescribes the respective roles of the Public, Private, Joint, and Co-operative sectors for the development of Industries.
• It also indicates the role of the large, medium and small scale sector.
• It incorporates fiscal and monetary policies, tariff policy, labour policy, and the Government attitude towards foreign capital, and role to be played by multinational corporations in the development of the industrial sector.
Industrial policy statements have been announced from 1948 onwards.
A number of objectives have been projected by the government of India while making industrial policy declarations.
Some of the important objectives can be identified as follows: Achieving a socialistic pattern of society.
Preventing undue concentration of economic power.
Achieving industrial development.
Reducing disparities in regional development.
Providing opportunities for gainful
employment.
Achieving a self- sustained economy.
Achieving faster economic growth.
Alleviating poverty.
Protecting and dev eloping a healthy small -
scale sector.
Updating technology and modernization of
industry.
Liberalization and Globalization of economy.
Industrial Policy
1948 & 1956
Khalid
The Government of India announced its first
industrial policy resolution on 6 April,1948.
The Policy resolution laid stress on the role
of the state in development of Industry.
The industrial activities were divided into
four broad areas:
1 Items under central Government control-
Manufacture of arms and ammunition, the
production and control of atomic energy,
ownership and management of railway transport,
etc.
2 Items under the state Government control-
Coal , Iron and steel, Aircraft manufacture,
shipbuilding, Manufacturing of Telephone,
Telegraph and wireless apparatus, excluding
radio receiving sets, mineral oils, etc.
3 Items of basic importance (planed & regulated
by central Government,)- Salt, Automobiles
and Tractors, Electric Engineering, other
heavy machines ,Machine tools , Heavy
Chemicals, Fertilizers and pharmaceuticals ,
Power, Cotton and Woolen textiles, and
Cement, Sugar, Paper and Newsprint, etc.
Items for Private Sector-
The rest of the Industrial field will be
open to Private Enterprises.
It also Emphasized on securing a
continuous increase in production and its
equitable distribution.
Importance was given to Small Scale and
cottage Industries.
Industrial policy Resolution (30 April , 1956) was
also regarded as the “ Economic Constitution of
India”.
Major Objectives of Industrial Policy Resolution
(30 April ,1956) are as follows:
Improvement in living standard and working
conditions for the mass of people.
To reduce disparities in income and wealth.
To prevent private monopolies and concentration
of Economic power.
Development of Transport facilities.
Undertake state trading on an increasing
scale.
Planned and rapid development.
Expand public sector.
Disparities in levels of development
between different regions should be
progressively reduced.
Industrial Policy
1973, 1977 & 1980
Madhusudhan
It provided for a closer interaction between the agricultural and industrial sectors. Accorded the highest priority to the generation and transmission of power.
An exhaustive analysis of industrial products was made to identify products which are capable of being produced in the small scale sector.
The list of industries exclusively reserved for the small scale sector was expanded from 180 items to more than 500 items.
Within the small scale sector, a tiny sector was also defined with investment in machinery and equipment upto Rs.1 lakh and situated in towns with a population of less than 50,000 according to1971 census figures, and in villages.
Special legislation to protect cottage and household industries was also proposed to be introduced.
The Government would promote the development of a system of linkages between nucleus large plants and the satellite ancillaries
To boost the development of small scale industries, the investment limit in the case of tiny units was enhanced to Rs.2 lakh, of a small scale units to Rs.20 lakh and of ancillaries to Rs.25lakh.
A scheme for building buffer stocks of essential raw materials for the Small Scale Industries was introduced for operation through the Small Industries Development Corporations in the States and the National Small Industries Corporation in the Centre.
Industrial processes and technologies aimed at optimum utilisation of energy or the exploitation of alternative sources of energy would be given special assistance, including finance on concessional terms.
Correction of regional imbalances;
Maximum production and achieving higher productivity; Higher employment generation;
Strengthening of the agricultural base through agro based industries;
Promotion of export-oriented industries;
Promotion of economic federalism through equitable spread of investment and dispersal of returns;
Consumer protection against high prices and bad quality.
Industrial Policy
1985,1991
Kalhari
• The year 1985 has witnessed a wide array
of industrial policy initiatives.
• In March 1985 , the government
announced the de-licensing of 25 broad
categories of industries.
• In June 1985 de-licensing was extended.
• In December 1985 de-licensing was
extended to MRTP and FERA companies.
25 July 1991 The new economic policy was
introduced has gone through several changes
in areas.
Main Features
1. Liberalization
2. Privatization
3. Globalization
Liberalization refers to the relaxation of the
previous government restriction usually in
area of social and economic policies. When
government liberalized trade, it means it has
removed the tariff, subsidies and other
restrictions on the flow of goods and services
between the countries.
Abolishing licensing requirement in most of the industries except a short list,
Freedom in deciding the scale of business activities i.e., no restrictions on expansion or contraction of business activities,
Removal of restrictions on the movement of goods and services,
Freedom in fixing the prices of goods and services,
Reduction in tax rates and lifting of unnecessary controls over the economy,
Simplifying procedures for imports and exports, and
Making it easier to attract foreign capital and technology to India.
Privatization means transfer of ownership
and/or management of an enterprise from
the public sector to the private sector. It also
means the withdrawal of the state from an
industry or sector partially or fully.
Privatization is opening up of an industry
that has been reserved for public sector to
the private sector.
The new set of economic reforms aimed at giving greater role to the private sector in the nation building process and a reduced role to the public sector.
To achieve this, the government redefined the role of the public sector in the New Industrial Policy of 1991.
The purpose of the same, according to the government, was mainly to improve financial discipline and facilitate modernization.
It was also observed that private capital and managerial capabilities could be effectively utilized to improve the performance of the PSUs.
The government has also made attempts to improve the efficiency of PSUs by giving them autonomy in taking managerial decisions.
Globalization implies integration of the
economy of the country with the rest of the
world economy and opening up of the
economy for foreign direct investment by
liberalizing the rules and regulations and by
creating favorable socio-economic and
political climate for global business.
Globalization is the outcome of the policies of liberalization and privatization already initiated by the Government.
Globalization is generally understood to mean integration of the economy of the country with the world economy. It is a complex phenomenon to understand and apply into practice.
It is an outcome of the set of various policies that are aimed at transforming the world towards greater interdependence and integration.
It involves creation of networks and activities transcending economic, social and geographical boundaries.
Globalization involves an increased level of interaction and interdependence among the various nations of the global economy.
Physical geographical gap or political boundaries no longer remain barriers for a business enterprise to serve a customer in a distant geographical market across the globe.
Development and utilization of capabilities in technology and manufacturing as well as its
up gradation to world standard.
Development of the capital market and increasing competitiveness.
Promoting workers participation in management.
Developing industries in backward areas.
All sector industries were encouraged to grow.
Industrial Policy
2014
Mohammed Saqib
To Ease Business
Facilitating industrial growth
Enhancing manufacturing and service sectors
through private sector participation.
To achieve inclusive industrial infrastructure
development in the state
To promote environmentally sustainable
industrial growth and balanced regional
development
Creation of quality infrastructure with comprehensive facilities
Human recourse development through capacity building and skill up gradation.
Facilitation mechanism and procedural reforms
Promotions of MSMEs
Special thrust for encouraging SC/ST entrepreneurs.
Encouragement to women entrepreneurs.
Encouragement to Minorities, Backward Classes physically challenged persons Ex- Servicemen entrepreneurs.
Launched by Prime Minister Modi on 25th September 2014.
A major national initiative designed to facilitate
Investment
foster innovation
enhance skill development
protect intellectual property
build best-in-class manufacturing infrastructure
There has never been a better time to make in India….!!!!
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Minority Investors
Paying Taxes
Trading across Borders
Enforcing Contracts
Resolving Insolvence
Where India Stands..?Ease of Doing Business
In 2015 – 164
In 2016 – 155
Getting Electricity
In 2015 – 99
In 2016 – 70
Protecting Interest of minority investors
2016-9
Rankings out of 189 countries The Ease of Doing Business (EODB) index is a ranking system established by the World Bank Group
Types of investors
Individual: FVCI (Foreign Venture Capital Investors)
Pension/Provident Fund
Financial Institutions
Company: Foreign Trust
Sovereign Wealth Funds
NRIs (Non Resident Indians)/ PIOs (Persons of Indian Origin)
Foreign Institutional Investors: Private Equity Funds
Partnership / Proprietorship Firm
Others
49% FDI under automatic route permitted in Insurance and Pension sectors
Foreign investment up to 49% in defence sector permitted under automatic route
FDI limit of 100% to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959
FDI up to 100% under automatic route permitted in Teleports
100% FDI under automatic route permitted in Brownfield Airport projects
In order to provide clarity to the e-commerce sector, the Government has issued guidelines for foreign investment in the sector 100%
etc.,
India
Adani Group
Aditya Birla Group
Amul
Apollo Hospitals
Finolex Cables Limited
JSW
MRF Limited
Patanjali
Reliance Industries
Tata Group
TVS motors
UK
Aviva
GE Healthcare
GlaxoSmithKline
USA
Uber Technologies Inc.
Salesforce
Pepsi
McD
Kellogg
Others
ABV Group(UAE)
Aegon N.V.(Netherlands)
Airbus(France)
Apus Group(china)
BMW(Germany)
Cinepolis(Mexico)
D-Link(Taiwan)
Givaudan(Swiss)
Concept was introduced, But focused in 2016 policy
GDP growth rate
Industrial Policy
2016
Mohammed Saqib
• What if your idea is not just an idea?
• What if it sees light?
• What if it’s really born?
• What if you can get someone to believe in it?
• And help you nurture it?
• What if you can set a clear path for it?
• What if it can actually travel?
• What if it grows and blooms?
• What if the whole world embraces it?
• What if your idea is not just an idea?
Start up India
Stand up India
Digital India
Make in India
women entrepreneurship
Enhance FDI
National manufacturing policy
(NMP)
Provide employment to both skilled and
unskilled workforce
To promote ease of doing Business to
create business friendly environment
To provide pro-active support to micro,
small and medium enterprises
Ensure effective implementation of the
policies
To become a global hub for manufacturing
One of the fastest growing economies in the world
India is likely to grow at consistently higher rates (>7%) and retain its position as one of the fastest growing economies till 2020(Source: IMF)
India accounted for 1.7% of global merchandise exports in 2014, compared to 0.8% in early 2000(source: WTO trade stats 2015)
Exports have increased at a Compound Annual Growth Rate of 11.6% in FY 2010 to USD 310 billion in FY 2015 (Source: EXIM bank, WTO trade stats 2015)
In recent years, India has emerged as one of the most attractive destinations for EODB (World Bank)
India ranks amongst the top 10 FDI destinations globally - surpassing USD 50 billion in FY 2015-16(Source: Ministry of Commerce)
Launch of IPR policy
Significant changes in FDI
Industrial infrastructure
KOREA PLUS
Public financial management system
Prime Minister Narendra Modi launched the ‘Stand up India’ scheme on 5 April 2016 as part of the government's efforts to support entrepreneurship among women and SC & ST communities
The scheme offers bank loans of between 10 lakh and 1 crore for SC and ST and women setting up new enterprises outside of the farm sector
Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth
generate large scale employment opportunities.
Innovation & design
Startup India campaign is based on an action
plan aimed at promoting bank financing for
start-up ventures to boost entrepreneurship
and encourage start ups with jobs creation
Rural India's version of Startup India was
named the Deen Dayal Upadhyay Swaniyojan
Yojana
Single Window Clearance even with the help of a mobile application
10,000 crore fund of funds
80% reduction in patent registration fee
90-day exit window
Freedom from mystifying inspections for 3 years
Freedom from Capital Gain Tax for 3 years
Freedom from tax in profits for 3 years
Eliminating red tape
Self-certification compliance
Innovation hub under Atal Innovation Mission
Starting with 5 lakh schools to target 10 lakh children for innovation programme
new schemes to provide IPR protection to start-ups and new firms
encourage entrepreneurship.
Stand India across the world as a start-up hub.[7]
Compliance Regime based on Self-Certification
Objective-To reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low
Startup India Hub
Objective-To create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding
Rolling-out of Mobile App and Portal
Objective-To serve as the single platform for Startups for interacting with Government and Regulatory Institutions for all business needs and information exchange among various stakeholders
Legal Support and Fast-tracking Patent Examination at Lower Costs
Objective-To promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs by providing access to high quality Intellectual Property services and resources, including fast-track examination of patent applications and rebate in fees.
Relaxed Norms of Public Procurement for Startups
Objective-To provide an equal platform to Startups (in the manufacturing sector) vis-à-vis the experienced entrepreneurs/ companies in public procurement
Faster Exit for Startups
Objective-To make it easier for Startups to wind up operations
Providing Funding Support through a Fund
of Funds with a Corpus of INR 10,000 crore
for development and growth of innovation
driven enterprises
To catalyse enterpreneurship by providing
credit to innovators accross all sections of
society
Tax Exemption on Capital Gains
Tax Exemption to Startups for 3 years
Tax Exemption on Investments above Fair
Market Value
Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform
Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent Utilization (SETU) Program
Harnessing Private Sector Expertise for Incubator Setup
Building Innovation Centres at National Institutes
Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras
Promoting Startups in the Biotechnology Sector
Launching of Innovation Focused Programs for Students
Annual Incubator Grand Challenge
PROPHET MUHAMMAD(Sallallaahu alaihi wasallam) says
“Cleanliness is Half of your Faith”
Target 2016 – 20 citiesContracts
India signed contract with USA to build Ajmer, Allahabad and Visakhapatnam in the presence of Union Urban Development Minister M Venkaiah Naidu
Germany to develop Kochi, Coimbatore, Bhubaneswar as smart cities
Singapore to develop Amaravati
Spain to build Delhi
Japan helping India develop its smart cities by investing US $ 4.5 billion in the 1st phase of DMIC project
Announced On 1ST July 2015
Focused on Digital Infrastructure to every citizen, Digital services & governance on demand and Digital empowerment of citizens
Initiatives
My govt platform
Jeevan praman
E-greetings portal
Digital locker system
E-Sign
E-Hospital
National scholarships portal
eBooks platforms
“Cities in the past were built on riverbanks
They are now built along highways
But in the future, they will be built based on availability of optical fiber networks and next-generation infrastructure”
India’s Vision “Digital India,” has set an ambitious plan to build 100 smart cities across the country
Future
Japan International Cooperation Agency(JICA) has also taken up master planning for three “Smart Cities” — Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka
1. Smart governance
2. Smart energy
3. Smart Environment
4. Smart transportation
5. Smart IT & Communications:
6. Smart Buildings
7. Smart Health Hospitals
8. Smart Education
Mahatma Gandhi was asked in 1946 to describe the independent India he
wished to see. He said he wanted "not a pyramid but an oceanic circle" of
complete equality. -
The Delhi-Mumbai Industrial Corridor
The Chennai-Bangalore Industrial Corridor
The Bangalore-Mumbai Economic Corridor
Adjusting zoning codes to reduce business
cost
Helping to facilitate walkable business
districts
Simplifying local regulations for starting
new business
Dedicate resources to economic gardening