New Delhi: India’s much anticipated new industrial policy is expected to be part of the central budget of Friday, which is centered around Make in India theme to re-industrialize the economy and create manufacturing jobs.
Industrial policy will include incentives to make India a manufacturing and export hub, once global manufacturers, who are troubled by the US-China trade war, are looking beyond Asia’s largest economy, a government official has not been able to print the name. Said on condition.
The central budget of July 5, presented by Finance Minister Nirmala Sitharaman, is after the withdrawal of power with the first majority of the Narendra Modi government.
“The policy, which can be part of the upcoming budget, will provide a medium-long-direction direction to India’s development trajectory,” officially mentioned above.
The new industrial policy had been prepared till the end of the first term of the Modi government when Suresh Prabhu had downgraded the Commerce and Industry Ministry; However, it was yet to be announced after the general election, fear of recommendations on labor reforms would have electoral results. It is said that Commerce Minister Piyush Goyal has changed certain provisions in the policy after assuming office.
Addressing a joint meeting of the President on June 20, President Rama Nath Kovind said that work is going on to transform India into a global manufacturing hub. “Keeping in mind the industry 4.0, a new industrial policy will soon be announced. In ‘Is of Doing Business’, India has jumped 65 positions during the last five years, from 142 to 77 in 2014. Now our goal is to join the top 50 countries of the world. To achieve this, the simplification of rules will be further strengthened with the cooperation of states. In this order, necessary amendments are also being brought in the company law, “he said.
Answering a question in the Lok Sabha on 26th June, Goyal said that the government was in the process of formulating a new industrial policy, which would be a road map for all businesses in the country. “In this regard, consultation has been organized with stakeholders to get their views and feedback. Considering all such input, a new industrial policy is in the government’s mind and it is likely to be finalized soon.
In its pre-budget wish list, industry lobby group FICCI had suggested remedial measures, enhance manufacturing employment and measures to promote Make in India program. “To announce special industrial areas for manufacturing and export with tax concessions and a light regulatory mechanism, and to start a phased manufacturing program (PMP) for more industrial goods, as has been done for LED and mobile. For example, the PMP can be extended to build air conditioners, medical devices, etc.
A discussion paper on the industrial policy issued in 2017 was important to India’s restrictive labor laws, assuming that they were highly protective of the workers in the formal sector. “Although labor protection and security are required, the flip side is that it discourages employers from hiring workers on a regular basis. Probably it has inspired entrepreneurs to stay away from labor-intensive areas and to opt for the excessive capital-or skilled labor-intensive technology sectors.
On July 24, 1991, the government had announced a statement of industrial policy, which significantly reduces the need for industrial approvals and inhibits the so-called license regime. After this, the National Manufacturing Policy was announced on November 4, 2011, which aims to increase the share of manufacturing in GDP by 25% by 2022. Manufacturing was 18% of GDP in 2018-19.
The new industrial policy will serve the National Manufacturing Policy, but its objectives will be much wider and will handle issues such as promoting emerging technologies; The creation of an innovation-driven economy; Promote high-quality industrial infrastructure; Providing access to affordable capital especially for micro, small and medium enterprises; Strengthening the relationship between business and manufacturing; Increasing skill development; And makes business easy.
The policy will also include the use of smart technologies such as Internet of Things, Artificial Intelligence (AI) and Robotics for advanced manufacturing. A Task Force of the Commerce Ministry has already submitted its report on availing the AI for economic transformation. Indian Institute of Technology Madras Prof. V. Under the chairmanship of Kamakoti, the task force was included in academics, industry officials and government officials.