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