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DPIIT WORKING ON NEW INDUSTRIAL POLICY AND SCHEME FOR MADE IN INDIA

“The Industrial Revolution was another of those extraordinary jumps forward in the story of civilization” - Stephen Gardiner


“ Every industrial revolution brings along a learning revolution.” After 1991 India is coming up with its ‘New Industrial Policy – Make in India for the world’. DPIIT is working on the new industrial policy to boost companies’ access to finance for rapid industrial growth.


“Every industrial revolution brings along a learning revolution.” After 32 years from 1991 India is coming up with its ‘New Industrial Policy - Make in India for the world’ with a clear aim to replace China as a world factory. This will be the third industrial policy of India after the industrial policies of 1956 and 1991.

DPIIT, Department for Promotion of Industry and Internal Trade which is a central government department under ministry of commerce and industry, India. DPI IT is working on a new industrial policy that proposes to boost companies' access to finance for rapid industrial growth and a scheme for encouraging the Made in India brand. The policy focuses on promoting investment in the manufacturing and service sector.

It has suggested various ways to boost companies' access to finance for the rapid growth in this sector by setting up a development finance institution to provide finance at competitive rates and considerable use of foreign exchange reserves for such funding. The Proposed policy is stating issues and challenges of industry through certain policy measures so as to foster and create an innovative and competitive industrial ecosystem in the country. Government is trying to promote investment in rural areas where there are no industries. The government will also incentivize the industries by providing them land and property at reasonable rates, reducing stamp duties , reducing electricity charges for the industries in rural areas etc. Through these policies, the government will also ensure that industries don’t face any hindrance in license procedures and formalities so that industries can easily set up their plants in rural areas and eventually these policies will lead to employment in rural areas.

DPIIT has pointed out six objectives that should be attained such as the focus on competitiveness and capability; economic integration and moving up the global value chain; promoting India as an appealing investment destination; nurturing innovation and entrepreneurship; and achieving global scale, and standards. According to the sources, the proposal also includes the implementation of an integrated investment promotion strategy by involving district, state, national and international market alliances to produce a greater combined effect. Furthermore suggestions in the proposed policy include providing performance-based loans and incentives for innovation and green growth, leveraging fintech, encouraging MSMEs to choose the corporate bond market, and accepting IPR(Intellectual Property Rights) as collateral for loans.

The main objectives of the Industrial Policy of the Government are to maintain a sustained growth in productivity, to enhance gainful employment, to achieve optimal utilization of human resources, to attain cut throat competition on international level and to transform India into a major partner & player in the global arena. To achieve these objectives, the Policy focuses on allowing freedom and flexibility to the industry in responding to market forces; and providing a policy regime that facilitates and fosters growth. Economic reforms 1991 forecasted a bigger role for private initiatives. The Industrial policy 1991 has been progressively liberalized over years to at present. The draft ‘Statement on Industrial Policy 2022 - Make in India for the world’ has been circulated to different ministries for their views and comments and soon will be passed from the higher authorities.

To enhance the country's credibility as a source of quality products, this scheme could play a crucial role in providing the platform to the manufacturer to demonstrate the local value addition in the products and seeks to achieve One Nation-One Standard, promote startups in every district, create startup innovation zones at the level of urban local bodies, and incentivize Indian specialty products by creating premium international brands.

The draft provides social security schemes for women workers, including labor-intensive industries under the production-linked incentive scheme (PLI) and incentivizing public procurement to promote 'Make in India' creating a national digital grid. For export competitiveness, the draft has strengthened the export finance systems.

To bring up innovation, the draft has suggested the creation of innovation zones at the level of urban local bodies and the formulation of a national capacity development program.

Hope this industrial policy proves to be prosperous for the industries and can bring revolution in the manufacturing and service sector.


DID YOU KNOW

The Department of Industrial Policy & Promotion (DIPP) was established in 1995 & was reconstituted in the year 2000 with the merger of the Department of Industrial Development and in January 2019, DIPP was renamed as DPIIT.



BY -

PRANUJ

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