Industrial and Licensing Policy

INDUSTRIAL AND LICENSING POLICYINDUSTRIAL AND LICENSING POLICY

What is Industrial Licensing?What is Industrial Licensing? Industrial policy means rules, regulations, principles, policies and Industrial policy means rules, regulations, principles, policies and

procedures laid down by government for regulating, developing procedures laid down by government for regulating, developing and controlling industrial undertakings in the country.and controlling industrial undertakings in the country.

It prescribes the respective roles of the public, private, joint and It prescribes the respective roles of the public, private, joint and

co-operative sectors for the developmentco-operative sectors for the development of industries.of industries.

Incorporates fiscal and monetary policies, tariff policy, labour Incorporates fiscal and monetary policies, tariff policy, labour policy and government attitude towards foreign capital, and role to policy and government attitude towards foreign capital, and role to be played by multinational corporations in the development of the be played by multinational corporations in the development of the industrial sector.industrial sector.

Government of India has formulated policies for industrial growth Government of India has formulated policies for industrial growth and development.and development.

History of Industrial LicensingHistory of Industrial Licensing

Pre- IndependencePre- Independence

1. East India company

2. First World War

3. Second world war

East India companyEast India company The Britishers came to India in the year 1600 as The Britishers came to India in the year 1600 as

traders of the East India company. During the traders of the East India company. During the British rule in India, government policy towards British rule in India, government policy towards industry and business was indifferent. The first industry and business was indifferent. The first century of British rule saw the decline of nearly century of British rule saw the decline of nearly all indigenous industries for many reasons – all indigenous industries for many reasons – technological, economic and political.technological, economic and political.

Modern industrial enterprises in India developed Modern industrial enterprises in India developed after 1850.Its earliest manifestations came in after 1850.Its earliest manifestations came in the wake of the construction of railways, which the wake of the construction of railways, which made it essential to have modern workshops for made it essential to have modern workshops for repair and maintenance of the rolling stock.repair and maintenance of the rolling stock.

First World WarFirst World War The outbreak of the First World War brought an end to the policy of The outbreak of the First World War brought an end to the policy of

hostility between British Bengal Chamber of Commerce and the hostility between British Bengal Chamber of Commerce and the government and forced on the government a more progressive policy government and forced on the government a more progressive policy that included selective encouragement of some industries and that included selective encouragement of some industries and protective tariff. protective tariff.

In 1916 the famous Indian Industrial Commission was set up to In 1916 the famous Indian Industrial Commission was set up to examine and report the possibilities of further industrial development examine and report the possibilities of further industrial development in India, and submit recommendations for a permanent policy of in India, and submit recommendations for a permanent policy of industrial stimulation.industrial stimulation.

Its proposals were based upon the fundamental principles that in the Its proposals were based upon the fundamental principles that in the future the government must play an active part in the industrial future the government must play an active part in the industrial development of the country. development of the country.

Second World WarSecond World War This was the time when major watershed in the development This was the time when major watershed in the development

of government business relations in India. India became the of government business relations in India. India became the main base of the Allied War efforts in the Far Eastern and main base of the Allied War efforts in the Far Eastern and Middle Eastern fronts its industrial development received a Middle Eastern fronts its industrial development received a tremendous boost from the substantial orders for locally tremendous boost from the substantial orders for locally manufactured goods and through setting up of a large number manufactured goods and through setting up of a large number of new industrial units in fields hitherto in conceivable.of new industrial units in fields hitherto in conceivable.

During the two brief years that intervened between the end of During the two brief years that intervened between the end of the war(1945) and independence(1947), government efforts the war(1945) and independence(1947), government efforts were mostly directed at dealing with shortages that developed were mostly directed at dealing with shortages that developed in large numbers of items both consumers goods and essential in large numbers of items both consumers goods and essential war materials.war materials.

PostPost IndependenceIndependence

Government's Role

Pandit Jawaharlal Nehru laid the foundation of modern India The goal Pandit Jawaharlal Nehru laid the foundation of modern India The goal and objectives set out for the nation by Pandit Nehru on the eve of and objectives set out for the nation by Pandit Nehru on the eve of independence were :independence were :

Rapid agriculture and industrial development of the countryRapid agriculture and industrial development of the country

Rapid expansion of opportunities for gainful employmentRapid expansion of opportunities for gainful employment

Progressive reduction of social and economic disparitiesProgressive reduction of social and economic disparities

Removal of poverty and attainment of self –relianceRemoval of poverty and attainment of self –reliance

ObjectivesObjectives of Industrial Policiesof Industrial Policies

Achieving a socialistic pattern of society.Achieving a socialistic pattern of society. Achieving industrial growth.Achieving industrial growth. Achieving economic growth.Achieving economic growth. Developing heavy and capital goods industry.Developing heavy and capital goods industry. Providing opportunities for gainful employment .Providing opportunities for gainful employment . Alleviating poverty.Alleviating poverty. Achieving a self-sustained economy .Achieving a self-sustained economy . Protecting and developing a healthy small-scale sector. Protecting and developing a healthy small-scale sector. Updating technology and modernization.Updating technology and modernization. Liberalization and globalization of economy.Liberalization and globalization of economy.

Five Year PlanningFive Year Planning First Five Year Plan First Five Year Plan (1951-52 to 1956-57)(1951-52 to 1956-57) Second Five Year Plan (1951-57 to 1961-62)Second Five Year Plan (1951-57 to 1961-62) Third Five Year Plan Third Five Year Plan (1961-62 to 1965-66)(1961-62 to 1965-66) Fourth Five Year Plan Fourth Five Year Plan (1969-70 to 1973-74)(1969-70 to 1973-74) Fifth Five Year Plan Fifth Five Year Plan (1974-75 to 1978-79)(1974-75 to 1978-79) Sixth Five Year Plan Sixth Five Year Plan (1978-79 to 1982-83)(1978-79 to 1982-83) Seventh Five Year Plan Seventh Five Year Plan (1985-86 to 1989-90)(1985-86 to 1989-90) Eight Five Year Plan Eight Five Year Plan (1992-93 to 1996-97)(1992-93 to 1996-97) Ninth Five Year Plan Ninth Five Year Plan (1997-98 to 2001-02)(1997-98 to 2001-02) Tenth Five Year Plan Tenth Five Year Plan (2001-02 to 2005-06)(2001-02 to 2005-06)

First Five Year Plan First Five Year Plan (1951-52 to 1956-57)(1951-52 to 1956-57)

Prioritized agriculture, irrigation and power Prioritized agriculture, irrigation and power projects in order to reduce the country’s projects in order to reduce the country’s dependence on food grain imports, solve the dependence on food grain imports, solve the food crisis and ease raw material problem, food crisis and ease raw material problem, particularly in jute and cotton.particularly in jute and cotton.

Almost 45% of the resources was allocated to Almost 45% of the resources was allocated to agriculture, while industry got a paltry 4.9%agriculture, while industry got a paltry 4.9%

Second Five Year Plan Second Five Year Plan (1956-57 to 1961-62)(1956-57 to 1961-62)

Agriculture was given a complementary role and emphasis Agriculture was given a complementary role and emphasis was on industrial sector, especially heavy goods industry.was on industrial sector, especially heavy goods industry.

Agricultural programs were aimed at meeting raw material Agricultural programs were aimed at meeting raw material requirements of industry besides meeting the food needs of requirements of industry besides meeting the food needs of the increasing population.the increasing population.

Industrial sector was perceived as the leading sector which Industrial sector was perceived as the leading sector which could enable the economy to grow at a rapid pace.could enable the economy to grow at a rapid pace.

Third Five Year Plan Third Five Year Plan (1961-62 to 1965-66)(1961-62 to 1965-66)

Agricultural production was once again given top Agricultural production was once again given top priority as it was found that growth in agricultural priority as it was found that growth in agricultural production was the limiting factor in economic production was the limiting factor in economic growth.growth.

Allocation to power sector was enhanced Allocation to power sector was enhanced considerably to 14.6% of the total outlay, as power considerably to 14.6% of the total outlay, as power generation was considered an important factor in generation was considered an important factor in ensuring rapid growth of the industrial sector which ensuring rapid growth of the industrial sector which could lead to self sustaining economic growth.could lead to self sustaining economic growth.

Fourth Five Year PlanFourth Five Year Plan (1969-70 to 1973-74) (1969-70 to 1973-74)

Emphasis shifted towards providing necessary Emphasis shifted towards providing necessary consumption benefits to the less privileged and consumption benefits to the less privileged and weaker sections of the society through weaker sections of the society through employment and education.employment and education.

The plan also aimed at accelerating the The plan also aimed at accelerating the momentum of economic development and momentum of economic development and improving stability of food grain production. improving stability of food grain production.

Fifth Five Year PlanFifth Five Year Plan (1974-75 to 1978-79) (1974-75 to 1978-79)

Concentrated on reigning inflation faced during the Concentrated on reigning inflation faced during the Fourth Plan and achieving stability in the economic Fourth Plan and achieving stability in the economic situation.situation.

Aimed at improving the quality of life of especially Aimed at improving the quality of life of especially the downtrodden section of economy.the downtrodden section of economy.

Several new economic and non-economic such as Several new economic and non-economic such as nutritional requirementsnutritional requirements, , health and family health and family planningplanning, were incorporated in the planning process., were incorporated in the planning process.

Sixth Five Year Plan Sixth Five Year Plan (1978-79 to 1982-83)(1978-79 to 1982-83)

Formulated by the Janata Government, sought to Formulated by the Janata Government, sought to achieve higher production targets with the achieve higher production targets with the concomitant increase in employment opportunities concomitant increase in employment opportunities for the poorest section of the society.for the poorest section of the society.

Emphasis on irrigation and power and the shift in Emphasis on irrigation and power and the shift in approach was laudable, the government lacked approach was laudable, the government lacked political will to forge ahead.political will to forge ahead.

Seventh Five Year Plan Seventh Five Year Plan (1985-86 to 1989-90)(1985-86 to 1989-90)

Food grain production grew by 3.2% despite Food grain production grew by 3.2% despite severe drought conditions during the first three severe drought conditions during the first three years of the Plan.years of the Plan.

Policies aimed at rapid growth in food grain Policies aimed at rapid growth in food grain production, higher employment levels etc, and production, higher employment levels etc, and several special programs like several special programs like Jawahar Rozgar Jawahar Rozgar YojanaYojana were introduced. were introduced.

Eight Five Year Plan Eight Five Year Plan (1992-93 to 1996-97)(1992-93 to 1996-97)

Launched immediately after the severe balance of Launched immediately after the severe balance of payment crisis, accentuated by the Gulf War in 1990.payment crisis, accentuated by the Gulf War in 1990.

Several structural adjustments policies such as a Several structural adjustments policies such as a substantial devaluation in the value of rupeesubstantial devaluation in the value of rupee, , dismantling of licensing requirementsdismantling of licensing requirements, , reducing reducing trade barrierstrade barriers, , reforms in the financial sectorreforms in the financial sector and and tax systemstax systems were introduced in order to put the were introduced in order to put the country on higher growth path and remedy the country on higher growth path and remedy the precarious balance of payments situation. precarious balance of payments situation.

Ninth Five Year Plan Ninth Five Year Plan (1997-98 to 2001-02)(1997-98 to 2001-02)

Key task was to improve the living conditions of the Key task was to improve the living conditions of the poop and provide them with adequate employment poop and provide them with adequate employment opportunities.opportunities.

It made serious efforts raise the level of agricultural It made serious efforts raise the level of agricultural and rural incomes and target programs at small, and rural incomes and target programs at small, marginal farmers and landless laborers.marginal farmers and landless laborers.

Also aimed to check the growth of population.Also aimed to check the growth of population.

Tenth Five Year Plan Tenth Five Year Plan (2001-02 to 2005-06)(2001-02 to 2005-06)

Formulated keeping in line with the Prime Formulated keeping in line with the Prime Minister’s vision of doubling per capita income in Minister’s vision of doubling per capita income in the country and creating 100 million employment the country and creating 100 million employment opportunities in the next 10 years.opportunities in the next 10 years.

INDUSTRIAL POLICY INDUSTRIAL POLICY OF INDIAOF INDIAINDUSTRIAL POLICY RESOLUTION , 1948

INDUSTRIAL POLICY RESOLUTION , 1956

INDUSTRIAL POLICY RESOLUTION , 1973

INDUSTRIAL POLICY RESOLUTION ,1977

INDUSTRIAL POLICY RESOLUTION ,1980

INDUSTRIAL POLICY INDUSTRIAL POLICY RESOLUTION, 1948RESOLUTION, 1948

Industrial policy Resolution of 1948,government recognized the need for a mixed economy and reserved national monopolies only for atomic energy, and rail & road industries. while many industries held by private firm could continue, the government had the exclusive right to initiate project in six other industries –coal, iron, and steel, aircraft manufacturing, shipbuilding, telephone, and minerals. Yet it could seek the aid of the private sector if necessary. Moreover, the government could regulate and license 18 other industries of national importance.


The main thrust of the (1948) industries policy was The main thrust of the (1948) industries policy was to lay the foundation of a mixed economy in which to lay the foundation of a mixed economy in which both private and public enterprises could march hand both private and public enterprises could march hand in hand to accelerate the process of industrial in hand to accelerate the process of industrial development.development.

Contid….


The role of government was, enlarged The role of government was, enlarged tremendously under the new industrial policy tremendously under the new industrial policy

announced in April, 1956.announced in April, 1956. This policy expanded the area Of operation of public This policy expanded the area Of operation of public

sector by bringing in 17 Industries under the sector by bringing in 17 Industries under the exclusive monopoly of this Sector and adding exclusive monopoly of this Sector and adding another 12 industries to the Domain of public sector. another 12 industries to the Domain of public sector.

The classification of The classification of industries policy 1956 is discussed below: industries policy 1956 is discussed below:

Classification of IndustriesClassification of Industries

The industrial policy of 1956 adopted the The industrial policy of 1956 adopted the Following classification of industries into Following classification of industries into Three categories,Three categories,

(1). Schedule A industries(1). Schedule A industries(2). Schedule B industries(2). Schedule B industries(3). Schedule C industries(3). Schedule C industries

SCHEDULE ‘A’ SCHEDULE ‘A’ INDUSTRIESINDUSTRIES

This category included 17 industries. TheThis category included 17 industries. The

Future development of these industries Future development of these industries

Was to be the exclusive responsibility of Was to be the exclusive responsibility of

The state. These industries include arms The state. These industries include arms

And ammunition, atomic energy, railways,And ammunition, atomic energy, railways,

Aircraft building, ship building, iron and Aircraft building, ship building, iron and

Steel, coal, heavy electricals, etc.Steel, coal, heavy electricals, etc.

SCHEDULE ‘B’ SCHEDULE ‘B’ INDUSTRIESINDUSTRIES

There were 12 industries placed in schedule B. There were 12 industries placed in schedule B. In regard to the developed of these In regard to the developed of these

Industries, the state was generally to takeIndustries, the state was generally to take

Initiative in setting up new undertaking.Initiative in setting up new undertaking.

However, the private was also expect to However, the private was also expect to

Supplement the effort of the state in this Supplement the effort of the state in this

Category of industries Some industries in Category of industries Some industries in

SCHEDULE ‘C’ SCHEDULE ‘C’ INDUSTRIESINDUSTRIES

All the remaining industries fell in the schedule C, the All the remaining industries fell in the schedule C, the future development of which was left to the initiative of thefuture development of which was left to the initiative of theinitiative of the private sector. The state, however, was toinitiative of the private sector. The state, however, was toprovide necessary assistance to private sector for provide necessary assistance to private sector for development of industries.development of industries. It is thus clear that the public sector was assigned a It is thus clear that the public sector was assigned a Dominant role in industrial development with 29 industriesDominant role in industrial development with 29 industriesSector under it.The public sector was given a commandingSector under it.The public sector was given a commandingPosition in the industrial sector. With this, the government Position in the industrial sector. With this, the government Assumed the role of the major partner’s in the country’sAssumed the role of the major partner’s in the country’sIndustrialisation process. The scope of private sector inIndustrialisation process. The scope of private sector inIndustrial programmes was thus not only limited to a fewIndustrial programmes was thus not only limited to a fewSpheres, but was also rigidly controlled by the licensingSpheres, but was also rigidly controlled by the licensing

CONT….CONT….

System which was a part of government’s System which was a part of government’s industrial policy.industrial policy.

This industrial policy of1956, with minor This industrial policy of1956, with minor modifications in 1977 and 1980, continued tomodifications in 1977 and 1980, continued to

govern India’s industrial development till Julygovern India’s industrial development till July

1991 when the new Industrial policy was 1991 when the new Industrial policy was

announced. announced.

INDUSTRIAL POLICY, 1973INDUSTRIAL POLICY, 1973

1.1. It was decided that compulsory export obligations, It was decided that compulsory export obligations, merely for ensuring the foreign exchange balance of merely for ensuring the foreign exchange balance of the project, would no longer be insisted upon while the project, would no longer be insisted upon while approving new industrial capacity.approving new industrial capacity.

2.2. In the areas of price control of agricultural and In the areas of price control of agricultural and Industrial products, the prices would be regulated to Industrial products, the prices would be regulated to ensure an adequate return to the investor. ensure an adequate return to the investor.


3.3. Within the small scale sector, a tiny sector was also Within the small scale sector, a tiny sector was also defined with investment in machinery and defined with investment in machinery and equipment up to Rs.1 lakh and situated in towns equipment up to Rs.1 lakh and situated in towns with a population of less than 50,000 according to with a population of less than 50,000 according to 1971 census figures, and in villages. 1971 census figures, and in villages.

4.4. Special legislation to protect cottage and household Special legislation to protect cottage and household industries was also proposed to be introduced.industries was also proposed to be introduced.


5.Accorded the highest priority to the generation and 5.Accorded the highest priority to the generation and transmission of power.transmission of power.

6.An exhaustive analysis of industrial products was 6.An exhaustive analysis of industrial products was made to identify products which are capable of being made to identify products which are capable of being produced in the small scale sector. produced in the small scale sector.

7.The list of industries exclusively reserved for the small 7.The list of industries exclusively reserved for the small scale sector was expanded from 180 items to more scale sector was expanded from 180 items to more than 500 items.than 500 items.

INDUSTRIAL POLICYINDUSTRIAL POLICYRESOLUTION, 1977RESOLUTION, 1977

In December 1977, the central government In December 1977, the central government Announced a new industrial policy by way of a Announced a new industrial policy by way of a Statement in the Parliament. The industrial policy, Statement in the Parliament. The industrial policy, despite some desirable elements, resulted in certain despite some desirable elements, resulted in certain distortion viz.,” Unemployment increased rural-urban distortion viz.,” Unemployment increased rural-urban disparities widened .”and real investment stagnated. disparities widened .”and real investment stagnated. On an average, the growth of industrial sector was On an average, the growth of industrial sector was not more than three to four percent per annum. The not more than three to four percent per annum. The incidence of industrial sickness also become wide incidence of industrial sickness also become wide spread.spread.

INDUSTRIAL POLICYINDUSTRIAL POLICYRESOLUTION, 1977 RESOLUTION, 1977 Contd……Contd……

The trust of the industrial police statement of The trust of the industrial police statement of December 1977 was on effective promotion of the December 1977 was on effective promotion of the cottage and small industries widely dispread in rural cottage and small industries widely dispread in rural areas and small towns. Emphasized that the areas and small towns. Emphasized that the whatever can be produced by small and cottage whatever can be produced by small and cottage industries must only be so produced. The focus industries must only be so produced. The focus point of development of small scale industries were point of development of small scale industries were taken away from the big cities to districts. taken away from the big cities to districts.

INDUSTRIAL POLICYINDUSTRIAL POLICYRESOLUTION, 1977 RESOLUTION, 1977 Contd……Contd……

The concept of district industries Centers was The concept of district industries Centers was introduced for the first time.introduced for the first time. Each district would Each district would have such a district center which would extend all have such a district center which would extend all the support and services required by the small the support and services required by the small entrepreneurs. These included economic entrepreneurs. These included economic investigations of the districts, supply of the investigations of the districts, supply of the machinery and equipments, raw material and other machinery and equipments, raw material and other resources, arrangement for credit facilities, call for resources, arrangement for credit facilities, call for quality control, research.quality control, research.

INDUSTRIAL POLICY INDUSTRIAL POLICY RESOLUTION, RESOLUTION, 19771977 Contd……Contd……

1.1. Within the small scale sector, a tiny sector was also defined with Within the small scale sector, a tiny sector was also defined with investment in machinery and equipment up to Rs.1 lakh and situated in investment in machinery and equipment up to Rs.1 lakh and situated in towns with a population of less than 50,000 according to 1971 census towns with a population of less than 50,000 according to 1971 census figures, and in villages. figures, and in villages.

2.2. Special legislation to protect cottage and household industries was also Special legislation to protect cottage and household industries was also proposed to be introduced.proposed to be introduced.

3.3. It was also decided that compulsory export obligations, merely for It was also decided that compulsory export obligations, merely for ensuring the foreign exchange balance of the project, would no longer be ensuring the foreign exchange balance of the project, would no longer be insisted upon while approving new industrial capacity.insisted upon while approving new industrial capacity.

4.4. In the areas of price control of agricultural and Industrial products, the In the areas of price control of agricultural and Industrial products, the prices would be regulated to ensure an adequate return to the investor. prices would be regulated to ensure an adequate return to the investor.

INDUSTRIES POLICY INDUSTRIES POLICY RESOLUTION, 1980RESOLUTION, 1980

The industrial policy statement of 1980 focused on The industrial policy statement of 1980 focused on the need for promoting competition in the domestic the need for promoting competition in the domestic market, technologies up gradation modernization. market, technologies up gradation modernization. The policy laid the foundation for an increasingly The policy laid the foundation for an increasingly competitive export base and for encourage foreign competitive export base and for encourage foreign investment in hi-tech areas. The policy, therefore investment in hi-tech areas. The policy, therefore suggested the following measures: suggested the following measures:

INDUSTRIES POLICY INDUSTRIES POLICY RESOLUTION, 1980 RESOLUTION, 1980 Contd……Contd……

Effective operational management of the public Effective operational management of the public sector.sector.

Integrating industrial development in the private Integrating industrial development in the private sector.sector.

Regularization of unauthorized access capacity Regularization of unauthorized access capacity installed in the private sector.installed in the private sector.

Encouragement of merger and acquisition of sick Encouragement of merger and acquisition of sick units.units.

INDUSTRIES POLICY INDUSTRIES POLICY RESOLUTION, 1980 RESOLUTION, 1980 Contd……Contd……

The industrial policy 1980 was guided merely by The industrial policy 1980 was guided merely by considerations of growth. It liberalized licensing for considerations of growth. It liberalized licensing for large and big business but by blurring the distinction large and big business but by blurring the distinction between small scale and large scale industries. It between small scale and large scale industries. It sought to promote the latter at the cost of the sought to promote the latter at the cost of the farmer. Broadly speaking, the industrial policy chose farmer. Broadly speaking, the industrial policy chose a more capital intensive path of the development a more capital intensive path of the development and thus, it underplayed the employment objective.and thus, it underplayed the employment objective.

INDUSTRIAL POLICY INDUSTRIAL POLICY 19911991

The new industrial policy was announced on 24The new industrial policy was announced on 24thth July 1991 by Mr. July 1991 by Mr. P.V. Narasimha Rao which was a kind of revolution due to the drastic P.V. Narasimha Rao which was a kind of revolution due to the drastic changes in the previous policies which opened up our economy from changes in the previous policies which opened up our economy from its closed/secured stateits closed/secured state

The main changes made in industrial policy 1991 included following :The main changes made in industrial policy 1991 included following :

Industrial licensing policyIndustrial licensing policy Foreign investment policiesForeign investment policies Foreign technology policiesForeign technology policies Public sector policiesPublic sector policies EXIMEXIM

FEATURESFEATURESThe features of the New Industrial Policy are:The features of the New Industrial Policy are:

Self RelianceSelf Reliance

Grater emphasis placed on developing our ability to pay for Grater emphasis placed on developing our ability to pay for imports from our own foreign exchange earningimports from our own foreign exchange earning

Government is committed to the development of indigenous Government is committed to the development of indigenous capabilities in technology and manufacturing as well as up capabilities in technology and manufacturing as well as up gradation of living standards.gradation of living standards.

To encourage entrepreneurshipTo encourage entrepreneurship

To bring new technologyTo bring new technology

Dismantling regulatory systemDismantling regulatory system

Reformation of PSUReformation of PSU

Manufacturing activity to be thrown open to private competitionManufacturing activity to be thrown open to private competition

Now lets discuss the following in Now lets discuss the following in

brief :brief :

A.A. Industrial LicensingIndustrial Licensing

B.B. Foreign InvestmentForeign Investment

C.C. Foreign Technology AgreementsForeign Technology Agreements

D.D. Public Sector PolicyPublic Sector Policy

E.E. MRTPMRTP

A. INDUSTRIAL LICENSING A. INDUSTRIAL LICENSING POLICY POLICY Automatic clearance if (where imported capital good is Automatic clearance if (where imported capital good is

required)required)

i)i) In case for-ex availability is assured through foreign In case for-ex availability is assured through foreign equityequity

ii)ii) If CIF (corporate investment funding) value of If CIF (corporate investment funding) value of imported capital good required is less than 25% of imported capital good required is less than 25% of total value up to maximum value of Rs 2 croretotal value up to maximum value of Rs 2 crore

If population of cities is less then 1 million then no If population of cities is less then 1 million then no government is required (25 KM)government is required (25 KM)

Phase manufacturing program will not be applicable Phase manufacturing program will not be applicable to new projects.to new projects.

Existing unit will be provided a new broad banding Existing unit will be provided a new broad banding facility to enable them to produce any article without facility to enable them to produce any article without any additional investment.any additional investment.

All existing registration scheme will be abolished All existing registration scheme will be abolished (Delicensed registration Exempted Industries (Delicensed registration Exempted Industries Registration, DGTD)Registration, DGTD)

Entrepreneur will henceforth only be required to file Entrepreneur will henceforth only be required to file an information on new projects and substantial an information on new projects and substantial expansion.expansion.

B. FOREIGN INVESTMENT B. FOREIGN INVESTMENT

Approval will be given for FDI up to 51% in high priority Approval will be given for FDI up to 51% in high priority industry. There shall be no bottleneck of any kind in this industry. There shall be no bottleneck of any kind in this process. process.

A special empower board would be constituted to A special empower board would be constituted to negotiate with large international firm and approve FDI in negotiate with large international firm and approve FDI in selected areaselected area

The import of component ,raw material and intermediate The import of component ,raw material and intermediate good, and payment of know-how fee and royalties will be good, and payment of know-how fee and royalties will be governed by the general policy applicable to other governed by the general policy applicable to other domestic units.domestic units.

C. FOREIGN TECHNOLOGY C. FOREIGN TECHNOLOGY AGREEMENTSAGREEMENTS

Automatic permission in high priority industry up to Automatic permission in high priority industry up to lump sum payment of Rs1 million( 5% royalty on lump sum payment of Rs1 million( 5% royalty on domestic sale & 8% royalty sale on export sale)domestic sale & 8% royalty sale on export sale)

No permission on hiring foreign technicianNo permission on hiring foreign technician Testing of indigenously developed technologies Testing of indigenously developed technologies

allowedallowed In respect of industries other than those in In respect of industries other than those in

automatic permission will be given subject to the automatic permission will be given subject to the same guidelines as above if no foreign exchange is same guidelines as above if no foreign exchange is required for any payment.required for any payment.

D. PUBLIC SECTORD. PUBLIC SECTOR Private sector to be allowed in PSU reserved areaPrivate sector to be allowed in PSU reserved area To encourage wider participation a large part of To encourage wider participation a large part of

government share holding in the public sector would be government share holding in the public sector would be offered to mutual fund, FI’s, general public & worker.offered to mutual fund, FI’s, general public & worker.

Board of PSU will be given greater power.Board of PSU will be given greater power. PSU enterprise which are chronically sick and which are PSU enterprise which are chronically sick and which are

unlikely to be turned around will, for the formulation of unlikely to be turned around will, for the formulation of revival/rehabilitation scheme, be referred to the Board of revival/rehabilitation scheme, be referred to the Board of Industrial and Financial Reconstruction (BIFR)or other Industrial and Financial Reconstruction (BIFR)or other similar high level institutions created for the purpose.similar high level institutions created for the purpose.

E. MRTP ACTE. MRTP ACT

The MRTP Act will be amended to remove the threshold The MRTP Act will be amended to remove the threshold limits of assets in respect of MRTP companies and limits of assets in respect of MRTP companies and dominant undertaking. i.e., no prior approval required for dominant undertaking. i.e., no prior approval required for establishment of new undertaking expansion, merger, establishment of new undertaking expansion, merger, amalgamation and takeover and appointment of director amalgamation and takeover and appointment of director under certain circumstances.under certain circumstances.

Emphasis will be placed on controlling and regulating Emphasis will be placed on controlling and regulating monopolistic, restrictive, and unfair trade practice.monopolistic, restrictive, and unfair trade practice.

MRTP act is restructured by eliminating the legal MRTP act is restructured by eliminating the legal requirements.requirements.

THREE STUDIES SHAPE THREE STUDIES SHAPE THE MRTP ACTTHE MRTP ACT

HAZARI COMMITTEE REPORT ON INDUSTRIAL LICENSING HAZARI COMMITTEE REPORT ON INDUSTRIAL LICENSING PROCEDURE, 1955 PROCEDURE, 1955

MAHALANOBIS COMMITTEE REPORT ON DISTRIBUTION MAHALANOBIS COMMITTEE REPORT ON DISTRIBUTION AND LEVELS OF INCOME, 1964AND LEVELS OF INCOME, 1964

MONOPOLIES INQUIRY COMMISSION REPORT OF DAS MONOPOLIES INQUIRY COMMISSION REPORT OF DAS GUPTA, 1965GUPTA, 1965

INDUSTRIAL LICENSINGINDUSTRIAL LICENSING POLICYPOLICY

Industrial LicensingIndustrial Licensing License is a written permission issued by the Central License is a written permission issued by the Central

Government to an industrial undertaking stating such details as Government to an industrial undertaking stating such details as the location, the articles to be manufactured, production the location, the articles to be manufactured, production capacity, change in product and other relevant particulars.capacity, change in product and other relevant particulars.

In India, an industrial license is normally issued after approved In India, an industrial license is normally issued after approved application and if further clearances like foreign collaboration, application and if further clearances like foreign collaboration, capital goods imports and further conditions are fulfilled.capital goods imports and further conditions are fulfilled.

A license is initially valid for two years and production as per A license is initially valid for two years and production as per the licensed capacity must start within the specified period. the licensed capacity must start within the specified period.

Objectives of Industrial LicensingObjectives of Industrial Licensing The basic objectives of industrial licensing are as follows:The basic objectives of industrial licensing are as follows: Planned industrial development through appropriate Regulations and Planned industrial development through appropriate Regulations and

controls.controls.

Directing industrial investment in accordance with plan Priorities.Directing industrial investment in accordance with plan Priorities.

Ensuring government control over industrial activities In IndiaEnsuring government control over industrial activities In India

Regulating the industrial capacity as per targets set for Planned Regulating the industrial capacity as per targets set for Planned economy.economy.

Preventing concentration of industrial and economic Power and Preventing concentration of industrial and economic Power and monopoly.monopoly.

Objectives continues….Objectives continues…. Checking unbalanced growth of industrial establishments and ensuring Checking unbalanced growth of industrial establishments and ensuring

economic size of industrial units.economic size of industrial units.

Balanced industrial growth through regulation of proper location of Balanced industrial growth through regulation of proper location of industrial units.industrial units.

Utilizing appropriate technology .Utilizing appropriate technology .

Protecting of small scale industries against undue competition of large Protecting of small scale industries against undue competition of large scale industries .scale industries .

Broadening the industrial base in India through new entrepreneurship Broadening the industrial base in India through new entrepreneurship development and ensuring industrial dispersion.development and ensuring industrial dispersion.

Utilizing full capacity of large scale industries .Utilizing full capacity of large scale industries .

Industrial Licensing PolicyIndustrial Licensing Policy The industrial licensing policy was laid down to be The industrial licensing policy was laid down to be

complementary to the industrial policy resolution as complementary to the industrial policy resolution as announced by the Government of India.announced by the Government of India.

Industrial licensing in India can be studied in the following Industrial licensing in India can be studied in the following stages:-stages:-

1.1. The Industries (Development & Regulation) Act, 1951The Industries (Development & Regulation) Act, 19512.2. Industrial Licensing Policy 1951-60Industrial Licensing Policy 1951-603.3. Industrial Licensing Policies for 1960-70Industrial Licensing Policies for 1960-704.4. Industrial Licensing policies 1970-77Industrial Licensing policies 1970-775.5. Industrial policy Statement 1980-90Industrial policy Statement 1980-906.6. Liberalization in industrial licensing 1991 and after. Liberalization in industrial licensing 1991 and after.

The Industries (Development & The Industries (Development & Regulation) Act, 1951Regulation) Act, 1951 This Act came into effect on May 8, 1952.This Act came into effect on May 8, 1952.

This Act has been described as “the single most important This Act has been described as “the single most important piece of economic development legislation”, in Indian legal piece of economic development legislation”, in Indian legal structure.structure.

It had three important It had three important objectivesobjectives. They are:. They are:

To implement the industrial policy,To implement the industrial policy, To ensure regulation and development of important industries,To ensure regulation and development of important industries, To ensure planning and future development of new To ensure planning and future development of new

undertaking. undertaking.

Main provisions of Act 1951Main provisions of Act 1951 Sec. 6Sec. 6 states that Development Councils are to be constituted in respect states that Development Councils are to be constituted in respect

of each scheduled industry or group of industry.of each scheduled industry or group of industry. All existing industrial undertakings in the industries listed in the First All existing industrial undertakings in the industries listed in the First

Schedule of this Act, should be registered with the government within Schedule of this Act, should be registered with the government within the prescribed period and issued with a certificate of registration.the prescribed period and issued with a certificate of registration.(sec.10)(sec.10)

sec. 11sec. 11 of the Act says that no new industrial undertakings of a major of the Act says that no new industrial undertakings of a major size can be started in the scheduled industry.size can be started in the scheduled industry.

Sec. 12Sec. 12 states that the Central government can revoke the registration states that the Central government can revoke the registration of license in case of any misrepresentation.of license in case of any misrepresentation.

Under Under sec.15sec.15 of the Act, the government can order an investigation into of the Act, the government can order an investigation into the working of an industrial undertaking.the working of an industrial undertaking.

Under Under sec. 16sec. 16 the government can issue directions to the management the government can issue directions to the management in respect of prices, production, quality, and other areas of its in respect of prices, production, quality, and other areas of its performance for the progress of industry and country’s economic devt. performance for the progress of industry and country’s economic devt.

Industrial Licensing policy 1951-60Industrial Licensing policy 1951-60

Industrial Licensing prior to 1960 aimed at achieving the Industrial Licensing prior to 1960 aimed at achieving the following among others:following among others:

Development of industries and encouraging industrial Development of industries and encouraging industrial activity in accordance with the plan prioritiesactivity in accordance with the plan priorities

Checking the concentration of economic powerChecking the concentration of economic power Reduction of regional disparitiesReduction of regional disparities Proper allocation of foreign exchangeProper allocation of foreign exchange Development, protection, and encouragement of small Development, protection, and encouragement of small

scale industries scale industries Modernization of technology and achievement of Modernization of technology and achievement of

industrial growth.industrial growth.

Policy 1951-60 continues…Policy 1951-60 continues… This policy in early 1960s came to be the object of criticism from This policy in early 1960s came to be the object of criticism from

two opposite angles:two opposite angles:

i) The left wing politicians and academicians criticized it as i) The left wing politicians and academicians criticized it as having unduly helped the growth of large business houses and having unduly helped the growth of large business houses and thus furthered the concentration of economic power to common thus furthered the concentration of economic power to common detriment. detriment.

ii) Leaders of private business and their academic criticized it as ii) Leaders of private business and their academic criticized it as stifling the industrial growth of the country and creating stifling the industrial growth of the country and creating unemployment and large production gaps.unemployment and large production gaps.

Industrial Licensing Policy 1960-70Industrial Licensing Policy 1960-70The industrial licensing policy came in for sharp criticism from variousThe industrial licensing policy came in for sharp criticism from various

committee and commission. The main criticism leveled against it were:committee and commission. The main criticism leveled against it were:

This policy had not been consistent with the industrial policy This policy had not been consistent with the industrial policy Resolution of 1956.i.e., no specific instruction had been given to the Resolution of 1956.i.e., no specific instruction had been given to the licensing authorities about keeping in view the general objective of licensing authorities about keeping in view the general objective of preventing concentration of economic power and monopolistic preventing concentration of economic power and monopolistic tendencies tendencies

Promotion of large industrial houses, andPromotion of large industrial houses, and Usage of some unethical practices followed by a section of large Usage of some unethical practices followed by a section of large

business houses, for example, multiple applications in different names business houses, for example, multiple applications in different names for the same items.for the same items.

Industrial Licensing Policies1970-1980Industrial Licensing Policies1970-1980Industrial licensing Policy of 1970Industrial licensing Policy of 1970

Government of India announced a new industrial policy in February Government of India announced a new industrial policy in February 1970.1970.

Several restrictive policies are followed in this policy. They are:Several restrictive policies are followed in this policy. They are:

It banned the entry of large industrial houses and foreign companies It banned the entry of large industrial houses and foreign companies into any field except core industries, heavy investment projects, and into any field except core industries, heavy investment projects, and export oriented projects.export oriented projects.

The government accepted the policy of convertibility of term loans The government accepted the policy of convertibility of term loans granted to industry by public financial institutions into equity.granted to industry by public financial institutions into equity.

Companies with foreign holding of 75 percent and above had to issue Companies with foreign holding of 75 percent and above had to issue fresh equity equivalent to 40 percent. fresh equity equivalent to 40 percent.

Industrial licensing policy of 1973Industrial licensing policy of 1973 This policy was announced in February 1973, which refined the 1970 policy.This policy was announced in February 1973, which refined the 1970 policy. It refines the 1970 policy in following aspects:It refines the 1970 policy in following aspects:

Assets exceeding Rs. 35 crore, was abandoned, in its place the definition Assets exceeding Rs. 35 crore, was abandoned, in its place the definition adopted by sec. 20 of the MRTP Act, i.e., the assets of a company by itself or adopted by sec. 20 of the MRTP Act, i.e., the assets of a company by itself or along with assets of inter connected undertakings amounting to Rs. 20 crore along with assets of inter connected undertakings amounting to Rs. 20 crore and above was accepted.and above was accepted.

The list of the core industries defined by the 1970 policy also substantially The list of the core industries defined by the 1970 policy also substantially enlarged.enlarged.

There were also some procedural changes in October 1973, creating a Project There were also some procedural changes in October 1973, creating a Project Approval Board (PAB) to deal with composite applications Approval Board (PAB) to deal with composite applications

Seeking approval under the four major hurdles, i.e., licensing, MRTP, capital Seeking approval under the four major hurdles, i.e., licensing, MRTP, capital goods, and Foreign Investment Board.goods, and Foreign Investment Board.

Industrial Licensing Policy of 1977Industrial Licensing Policy of 1977

Janata party government, which came to power after the Janata party government, which came to power after the General Elections of 1977, announced a new industrial policy General Elections of 1977, announced a new industrial policy statement on December 23, 1977.statement on December 23, 1977.

The 1977 licensing policy provided thrust mainly in two The 1977 licensing policy provided thrust mainly in two respects:respects:

Priority to small scale, village, and tiny sector industries in future industrialisation, and

Geographical dispersal of industries from metropolitan centers to rural and backward areas.

Industrial Policy Statement 1980-90Industrial Policy Statement 1980-90 The General Elections of 1980 and the return to power of the Congress The General Elections of 1980 and the return to power of the Congress

party brought about the Industrial Policy statement of 1980 and 1982.party brought about the Industrial Policy statement of 1980 and 1982. Major steps taken under this policy are as follows:Major steps taken under this policy are as follows:

Licensing was not required for an existing licensed undertakings if the Licensing was not required for an existing licensed undertakings if the total investment did not exceed Rs. 3 crore and if it did not require total investment did not exceed Rs. 3 crore and if it did not require foreign exchange excess of 10 percent of ex- factory value of Rs. 25 foreign exchange excess of 10 percent of ex- factory value of Rs. 25 lakh, whichever is less.lakh, whichever is less.

An existing licensed undertaking did not require a fresh license to An existing licensed undertaking did not require a fresh license to manufacture any new item from schedule I to the maximum of the manufacture any new item from schedule I to the maximum of the licensed capacity and also expand or manufacture a new product licensed capacity and also expand or manufacture a new product making use of its own wastes or effluent on the recommendation of the making use of its own wastes or effluent on the recommendation of the administrative ministryadministrative ministry

Policy 1980-90 continues…Policy 1980-90 continues… No industrial license was required for small-scale units to produce No industrial license was required for small-scale units to produce

any of the items reserved for the sector under the following any of the items reserved for the sector under the following conditions:conditions:

i.i. The unit should not belong to any dominant undertaking as defined The unit should not belong to any dominant undertaking as defined in MRTP Act,in MRTP Act,

ii.ii. The unit and other interconnected unit together should not possess The unit and other interconnected unit together should not possess assets exceeding Rs. 20 crore.assets exceeding Rs. 20 crore.

iii.iii. In respect of foreign ownership, there should not be over 40 percent In respect of foreign ownership, there should not be over 40 percent equity owned by foreign companies or subsidiaries or foreign equity owned by foreign companies or subsidiaries or foreign individuals.individuals.

iv.iv. The items produced should not belong to the schedule A category. The items produced should not belong to the schedule A category.

Liberalizations in Industrial Liberalizations in Industrial Licensing 1991 and AfterLicensing 1991 and After

Due to the changing Industrial scene in the country, Due to the changing Industrial scene in the country, the policy has undergone modifications.the policy has undergone modifications.

Industrial licensing policies and procedures have been Industrial licensing policies and procedures have been liberalized from time to time.liberalized from time to time.

Major policy initiatives & procedural reforms were Major policy initiatives & procedural reforms were called for to encourage & assist the Indian called for to encourage & assist the Indian entrepreneur to exploit & meet domestic & global entrepreneur to exploit & meet domestic & global opportunities & challengesopportunities & challenges

Policy DecisionsPolicy Decisions

To unshackle the Indian industrial economy from unnecessary To unshackle the Indian industrial economy from unnecessary bureaucratic control.bureaucratic control.

the series of measures taken by government in the areas of trade the series of measures taken by government in the areas of trade policy, exchange rate management, fiscal policy, financial sector policy, exchange rate management, fiscal policy, financial sector reform, overall macroeconomic management.reform, overall macroeconomic management.

Industrial Licensing Policy :Industrial Licensing Policy :

industrial licensing abolished for all projects except for short list of industrial licensing abolished for all projects except for short list of industries related to security, strategic concerns, social reasons, industries related to security, strategic concerns, social reasons, hazardous chemicals, overriding environmental reasons, items of elitist hazardous chemicals, overriding environmental reasons, items of elitist consumptionconsumption

Industries reserved for small scale sector will continue to be reserved , areas Industries reserved for small scale sector will continue to be reserved , areas where security & strategic concerns predominate will be reserved for public where security & strategic concerns predominate will be reserved for public sectorsector

Automatic clearance is given where foreign capital goods availability is ensured Automatic clearance is given where foreign capital goods availability is ensured through foreign equity, else required clearance from secretariat of industrial through foreign equity, else required clearance from secretariat of industrial approvals in the department of industrial developmentapprovals in the department of industrial development

In location of more than 1 million population, no need of industrial approval In location of more than 1 million population, no need of industrial approval from the central government except for those subject to compulsory licensing, from the central government except for those subject to compulsory licensing, appropriate incentives & design of investments in infrastructure development appropriate incentives & design of investments in infrastructure development will be used to promote dispersal of industry to backward areaswill be used to promote dispersal of industry to backward areas

System of phased manufacturing run on administrative case-by-case basis will System of phased manufacturing run on administrative case-by-case basis will not be applicable to new projects, existing units will be provided new broad not be applicable to new projects, existing units will be provided new broad banding facility to enable them to produce any article, exemptions from banding facility to enable them to produce any article, exemptions from licensing is applicable to substantial expansions of existing units.licensing is applicable to substantial expansions of existing units.

Foreign Investment :Foreign Investment :

Approval given to direct foreign investment up to 51% foreign equity in high priority industries ,import components, intermediate goods, payment of fees royalties governed by general policy, payment of dividends made through RBI.

Foreign equity proposals need not be accompanied by foreign technology agreements, majority foreign equity holding up to 51% will be allowed for trading companies engaged in export activities.

Special empowered board constituted to negotiate with number of international firms & approve direct foreign investment in select areas so as to give access to high-Tech & world markets.

Foreign Technology Agreements :Foreign Technology Agreements :

Automatic permission to high priority industries upto payment of 1 Automatic permission to high priority industries upto payment of 1 crores,5% royalty for domestic sales,8% for export & if no free foreign crores,5% royalty for domestic sales,8% for export & if no free foreign exchange is needed for payments.exchange is needed for payments.

Other proposals need approval under general procedure, no permission Other proposals need approval under general procedure, no permission is needed for hiring foreign technicians, foreign testing of indigenously is needed for hiring foreign technicians, foreign testing of indigenously developed technologies.developed technologies.

Public Sector :Public Sector :

Focus on strategic, high-Tech, infrastructure, no bar for areas of Focus on strategic, high-Tech, infrastructure, no bar for areas of exclusivity to be opened up to private sector ,public sector will be exclusivity to be opened up to private sector ,public sector will be allowed to entered in unreserved areas.allowed to entered in unreserved areas.

Sick public enterprises were referred to BIFR ,social security Sick public enterprises were referred to BIFR ,social security mechanism created to protect interest of workers affected.mechanism created to protect interest of workers affected.

Part of government share holding in public sector offered to Part of government share holding in public sector offered to mutual funds, financial institutions ,general public ,workers.mutual funds, financial institutions ,general public ,workers.

Boards of public sector companies made more professional Boards of public sector companies made more professional with more powers, more thrust on performance improvement with more powers, more thrust on performance improvement through MOU, up gradations of technical expertise to make through MOU, up gradations of technical expertise to make MOU negotiations more effective.MOU negotiations more effective.

MRTP ACT:MRTP ACT:

To remove threshold limits ,eliminating the need of prior approval of To remove threshold limits ,eliminating the need of prior approval of central government for establishing & expansions of new central government for establishing & expansions of new undertakings, merger, amalgamation, takeover & appointments of undertakings, merger, amalgamation, takeover & appointments of directors .directors .

Control & to regulate monopolistic restrictive unfair trade practices, Control & to regulate monopolistic restrictive unfair trade practices, newly empowered MRTP commission authorized to investigate on newly empowered MRTP commission authorized to investigate on complaints receivedcomplaints received

Necessary comprehensive amendments will be made in the MRTP Act Necessary comprehensive amendments will be made in the MRTP Act in this regard and for enabling the MRTP Commissions to exercise in this regard and for enabling the MRTP Commissions to exercise punitive and compensatory powers.punitive and compensatory powers.

Exemptions from LicensingExemptions from Licensing

27 broad categories of industries are exempted from licensing include 27 broad categories of industries are exempted from licensing include automotive ancillaries, agricultural implements, cycles, leather goods, automotive ancillaries, agricultural implements, cycles, leather goods, glassware.glassware.

Export-oriented industries, import substitution items, latest technology Export-oriented industries, import substitution items, latest technology industries, capital goods industries are exempted if not MRTP or FERA industries, capital goods industries are exempted if not MRTP or FERA or not reserved for small-scale sector.or not reserved for small-scale sector.

Multinationals are permitted to hold equities up to 49% in selected Multinationals are permitted to hold equities up to 49% in selected small scale industries & 82 bulk drugs.small scale industries & 82 bulk drugs.

Items relating to an industries which is not included in the first Items relating to an industries which is not included in the first schedule of the act .schedule of the act .

Exemptions continues…Exemptions continues… Items to be manufactured in an undertaking which does not come under Items to be manufactured in an undertaking which does not come under

the definition of a “factory” under the industries (D and R ) Act , 1951.the definition of a “factory” under the industries (D and R ) Act , 1951.

Items to be manufactured in the de-licensed sector of investment up to Items to be manufactured in the de-licensed sector of investment up to Rs. 25 crore in fixed assets in non-backward areas and up to Rs. 75 Rs. 25 crore in fixed assets in non-backward areas and up to Rs. 75 crore in backward areas.crore in backward areas.

Expansions which does not come under substantial expansion ,that is , Expansions which does not come under substantial expansion ,that is , up to 25% of the existing capacity.up to 25% of the existing capacity.

Small scale units subject to certain conditions Small scale units subject to certain conditions ..

Items which do not fall under the definition of “ new article”.Items which do not fall under the definition of “ new article”.

Industrial Licensing: CRITICISMIndustrial Licensing: CRITICISM

Most of the objectives could not be achieved, industrial Most of the objectives could not be achieved, industrial investment could not be fully streamlined.investment could not be fully streamlined.

It could not fully succeed in preventing concentration of It could not fully succeed in preventing concentration of monopoly & economic power.monopoly & economic power.

Licensing could not provide a clear cut guidelines about Licensing could not provide a clear cut guidelines about industrial location thereby resulting in unbalanced industrial location thereby resulting in unbalanced industrialization.industrialization.

Foreign investments was restricted time to time affecting Foreign investments was restricted time to time affecting inflow of capital, technology.inflow of capital, technology.

ConclusionsConclusions

INDUSTRIAL LICENSING constituted the key element INDUSTRIAL LICENSING constituted the key element Government of India’s industrial policy since 1951.Government of India’s industrial policy since 1951.

Several important controls such as MRTP ACT, capital goods Several important controls such as MRTP ACT, capital goods import control and government policy regarding foreign import control and government policy regarding foreign investments and foreign collaborations have been taken.investments and foreign collaborations have been taken.

Government continues to provide necessary control measures for Government continues to provide necessary control measures for the development of economy and infrastructure of the nation .the development of economy and infrastructure of the nation .

It is expected that the new industrial policies would be reviewed It is expected that the new industrial policies would be reviewed from the Government from time to time.from the Government from time to time.

Thank You !

Submitted By :

Anshul Goyal 62Uma Sharma 72Sanjay Gaur 82Rituja Thakur 92Amber 102Id Mohammad

Submitted To:Mrs. Shilpa Jain

Industrial and Licensing Policy

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