Indian
Year Book
(2022-23)
Chapter – 11. Industry
Ø THE Department for Promotion of Industry and Internal Trade (DPIIT) was established in 1995 and was reconstituted in 2000 with the merger of the Department of Industrial Development. Earlier separate Ministries for Small Scale Industries & Agro and Rural Industries (SSI&A&RI), and Heavy Industries and Public Enterprises (HI&PE) were created in October 1999.
Ø The Department also handles matters related to Protection of Intellectual Property Rights (IPR) and administers six Acts related to IPRs. It also handles matters related to Foreign Direct Investment (FDI) and Investment by NRIs, and undertakes promotion of investment for industrial development of the country.
Ø Its role and functions primarily include:
· formulation and implementation of industrial policy and strategies for industrial development, monitoring the industrial growth
· formulation of Foreign Direct Investment (FDI) Policy; and
·
formulation of policies
relating to Intellectual Property Rights
National Manufacturing
Policy
Ø In order to bring about a quantitative and qualitative change and to provide necessary impetus to the manufacturing sector, the National Manufacturing Policy (NMP) was notifi ed with the objective of enhancing the share of manufacturing in GDP to 25 per cent and creating 100 million jobs over a decade or so.
Ø The National Investment and Manufacturing Zones (NIMZs) are an
important instrumentality of the Policy. These zones have been conceived as
large integrated industrial townships with state-of-theart infrastructure.
Manufacturing Clusters
Ø The objective of the National Plan for Manufacturing Clusters is to
bring about convergence in the multiple models of development of industrial
clusters by the central and state governments so as to affect better cost effi
ciency and optimal utilisation of resources.
Foreign Direct Investment
Policy
Ø DPIIT is the nodal department for formulation of the policy on
Foreign Direct Investment (FDI). It is also responsible for maintenance and
management of data on inward FDI into India, based on the remittances reported
by the Reserve Bank of India.
Investment Promotion
Ø DPIIT plays an active role in investment promotion and facilitation
through dissemination of information on investment climate and opportunities
within the country and by advising prospective investors about investment
policies and procedures and opportunities.
Make in India
Ø The initiative was launched in 2014, as a national effort towards making India an important investment destination and a global hub for manufacturing, design and innovation.
Ø The programme is based on four pillars namely, new processes, new
infrastructure, new sectors and new mindset.
Production Linked Incentive (PLI) Scheme
Ø Keeping in view India’s vision of becoming ‘Atmanirbhar’ and to
enhace india’s Manufacturing capabilities and export, an outlay of 1.97 lakh
crore has been announced in Union Budget 2021-22 for PLI Schemes for 13 key
sectors during the tenture of the PLI Schemes starting from fi scal year (FY)
2021-22.
Public Procurement
Ø The Public Procurement (Preference to Make in India) Order 2017 (PPP
MII Order) was issued in 2017 pursuant to Rule 153 (iii) of the General
Financial Rules 2017 as an enabling provision to promote domestic value
addition in public procurement.
Ease of Doing Business
Ø In order to improve the business environment in the country, the Ministry has taken up a series of measures to simplify and rationalise the regulatory processes (registration and inspection processes) and introduction of information technology as enabler to make governance more effi cient and effective. India ranks 63rd in the World Bank’s annual Doing Business Report (DBR) 2020 as against 77th rank in the DBR 2019. The DBR ranks countries on the basis of Distance to Frontier, an absolute score that measures the gap between India and the global best practice on 10 specifi ed indicators. India’s absolute score improved from 67.23 in DBR 2019 to 71.0 in DBR 2020.
Ø The ease of doing business index is meant to measure regulations
directly affecting businesses and a nation’s rank is based on the average of
these 10 indicators, viz., starting a business; dealing with construction
permits; getting electricity; registering property; getting credit; protecting
minority investors; paying taxes; trading across borders; enforcing contracts;
and resolving insolvency.
Startup India
Ø Startup India is a fl agship initiative of the Government of India, intended to catalyse the startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
Ø Launched in 2016, Startup India has rolled out several programmes
with the objective of supporting entrepreneurs, building up a robust startup
ecosystem and transforming India into a country of job creators instead of job
seekers.
Research Parks
Ø Research Parks are being established at IIT Guwahati, Hyderabad,
Kanpur, Kharagpur, IISc Bangalore, Gandhinagar, Delhi and Bombay to propel
successful innovation through incubation and joint R&D efforts between
academia and industry
Promoting Startups in
Biotechnology
Ø With the aim to foster and facilitate Bio-entrepreneurship, Bio-clusters, Bio Incubators, Technology Transfer Offi ces (TTOs) and Bio-Connect offi ces are being established in research institutes and universities across India.
Ø Seed fund and Equity Funding support is also provided to Bio-tech Startups under the initiative.
Ø Mobile App and Startup India Portal Startup India web portal and
mobile app has been developed and operationalised since 2016.
Startup India Hub
Ø Startup India Hub was operationalised in 2016 to resolve queries and
handhold startups. A digital extension to Startup India Hub, an intelligent
online hub was operationalised in 2017 which will serve as a platform where all
the stakeholders of the startup ecosystem can collaborate and synergise their
efforts. It will facilitate location-wise and sectoral mapping.
Invest India
Ø Invest India has been set up as a joint venture (not for profi t) company between the erstwhile Department of Industrial Policy and Promotion, now DPIIT, Federation of Indian Chambers of Commerce & Industry (FICCI), CII, NASSCOM and various state governments.
Ø Invest India is the National Investment Promotion and Facilitation Agency of India and acts as the fi rst point of reference for investors.
Ø Project Monitoring Group (PMG) was set up in Cabinet Secretariat in
2013 and has recently been merged with DPIIT from 2019, with Invest India
providing support. The PMG is now known as Project Monitoring- Invest India
Cell (PMIC). It is an institutional mechanism for resolving of issues and
fasttracking the setting up and expeditious commissioning of large public,
private and Public-Private Partnership (PPP) Projects.
Intellectual Property
Rights
Ø DPIIT is the nodal department for administration of various laws
related to Intellectual Property Rights: patents; trade marks; industrial
designs; geographical Indications of goods; copyrights; and semiconductor
integrated circuit layout designs.
National IPR Policy
Ø The National IPR Policy lays the future roadmap for intellectual
property in India. The Policy recognises the abundance of creative and
innovative energies that fl ow in India, and the need to tap into and
channelise these energies towards a better and brighter future for all.
Productivity and Quality
Ø DPIIT is the nodal department for the promotion of productivity and
quality in the industrial sector. The National Productivity Council (NPC)
represents India in the Tokyo based Asian Productivity Organisation (APO), of
which India is a founder member. NPC undertakes productivity augmentation
through domain specifi c consultancy; training; workshops; seminars and
conferences to government; public and private sectors; productivity related
research; monitoring and evaluation of various government schemes; and projects
and information dissemination through collaboration with APO.
National Design Policy
Ø The National Design Policy was approved in 2007. The details of the Policy, inter alia, include:
·
Promotion of Indian design
through a well-defi ned and managed regulatory, promotional and institutional
framework;
·
Setting up of specialised
Design Centres or Innovation Hubs
· Formulation of a scheme for setting up Design Centres/ Innovation Hubs in select locations/ industrial clusters/backward states, particularly in the North East; (iv) laying special focus on upgradation of existing design institutes and faculty resources encouraging the establishment of departments of design in all the Indian Institutes of Technology (IITs) and all the National Institutes of Technology (NITs) (vi) facilitating the establishment of a Chartered Society for Designers and
·
Setting up an India Design
Council (IDC) with eminent personalities drawn from different walks of life,
etc.
Industrial/Economic
Corridors
Ø Industrial Corridor Projects as part of National Industrial Corridor Programme is aimed at development of futuristic industrial cities in the country which can compete with the best in the world.
Ø The programme is aimed at providing multi modal connectivity with
complete ‘plug and play’ infrastructure.
Delhi-Mumbai Industrial
Corridor
Ø The Delhi-Mumbai Industrial Corridor (DMIC) project was launched in
pursuance of an MoU signed between the Government of India and the Government
of Japan in 2006.
Chennai-Bengaluru
Industrial Corridor
Ø The Chennai-Bengaluru Industrial Corridor (CBIC) proposes to address
the infrastructure bottlenecks through a holistic approach while benefi tting
from the inherent strengths and competitiveness of each of the CBIC states.
Bengaluru-Mumbai Economic
Corridor
Ø The Bengaluru-Mumbai Economic Corridor (BMEC) is intended to
facilitate development of a well-planned and resource-effi cient industrial
base served by world-class sustainable connectivity infrastructure, bringing
signifi cant benefi ts in terms of innovation, manufacturing, job creation and
resource security to the two states.
Amritsar-Kolkata
Industrial Corridor
Ø In order to give a boost to industrial development in the densely populated states of northern and eastern India, the government is commencing work on creating an Amritsar-Kolkata Industrial Corridor (AKIC).
Ø This will be structured around the Eastern Dedicated Freight
Corridor (EDFC) as the backbone and also the highway system that exists in this
route.
Vizag-Chennai Industrial
Corridor
Ø The Visakhapatnam-Chennai Industrial Corridor (VCIC) is a key part of the East Coast Economic Corridor (ECEC), India’s fi rst coastal corridor.
Ø VCIC is aligned with the Golden Quadrilateral and is poised to play
a critical role in driving India’s Act East Policy.
National Industrial
Corridor Development and Implementation Trust
Ø In view of the success and importance of DMIC project, four more industrial corridors were approved, namely, Amritsar-Kolkata Industrial Corridor (AKIC) Bengaluru-Mumbai Economic Corridor (BMEC), Chennai-Bengaluru Industrial Corridor (CBIC) and East Coast Economic corridor with Vizag-Chennai Industrial Corridor (VCIC) as the initial phase of development.
Ø It has been expanded and re-designated as National Industrial
Corridor Development and Implementation Trust (NICDIT).
Industrial Performance
Ø Index of Industrial Production (IIP) measures performance of the
industrial production in manufacturing, mining and electricity sectors and also
in use-based categories such as primary, capital, intermediate
infrastructure/construction, consumer durables and consumer non-durables.
Performance of Eight Core
Industries
Ø The index for Eight Core Industries (ICI) monitors production of eight core industries i.e., coal, crude oil, natural gas, refi nery products, fertilizers, steel, cement and electricity every month. These eight industries have combined weight of around 40.27 per cent in Index of Industrial Production (IIP). " Leather Industry: Leather industry plays an important role in the Indian economy in view of its substantial overall output, export earnings and employment potential. The export of leather and leather products from the country has undergone a structural change in the last two decades, share of leather footwear, leather garments, leather goods, and several articles of leather in the total exports has increased substantially as a result of government’s policy to encourage export of value added leather products.
Ø Cement Industry: Cement is one of the most technologically advanced industries in the country. The industry plays a crucial role in the development of housing and infrastructure sector of the economy. Ceramic Industry: The ceramic industry is about 50 years old. It comprises ceramic tiles, sanitaryware and crockery. Ceramic products are manufactured both in the large and small-scale sectors with wide variation in type, size, quality and standard by the national and regional players. India continues to rank No. 3 in terms of production and consumption of tiles in the world.
Ø Tyre & Tubes industry: Tyres play an integral role to ensure mobility including movement of passengers and essential goods across the urban and rural landscape of the country using all types of vehicles ranging from carts, tractors, trucks and buses to the latest generation passenger cars that ply on the modern expressways.
Ø All types of tyres required to meet the domestic demand are manufactured in India.
Ø Rubber Goods Industry: The rubber industry manufactures a wide range of products like rubber cots and aprons, contraceptives, footwear, rubber hoses, cables, camelback, battery boxes, latex products, conveyor belts, surgical gloves, balloons, rubber moulded goods, etc.
Ø The main raw materials used by the rubber goods manufacturing industry are natural rubber, various types of synthetic rubber, carbon black, rubber chemicals, etc.
Ø Cigarette Industry: The cigarette industry is an agro-based labour intensive industry. Cigarette, included in the First Schedule to the Industries (Development & Regulations) Act, 1951, requires industrial license.
Ø Paints & Allied Products: The Paints and Allied Industry which has been exempted from compulsory licensing, mainly consists of paints, enamels, varnishes, pigments, printing inks, etc.
Ø Soaps and Detergents industry: Soaps and detergents are not licensable and are manufactured both in the small-scale and organised sector.
Ø It includes laundry soaps, synthetic detergents, toilet soaps, bathing bars, etc. Multinational companies lead the manufacture of toilet soap in the country.
Ø Glass Industry: Glass industry comes under the category of delicensed.
Ø It covers seven items such as fl at glass (including sheet, fl oat, fi gured, wired, safety, mirror glass), glass fi bre and glass wool, hollow glassware, laboratory glassware, table and kitchen glassware, glass bangles and other glassware.
Ø Paper Industry: India rules as one of the fastest growing paper markets in the world.
· The growing knowledge base coupled with synergistic contributions from fl agship schemes, namely, Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA), Inclusive Education for the Disabled at Secondary School (IEDSS), adult education, Right to Education and central government scholarship and education loan scheme, assured a robust demand for paper and paper board.
Ø Paper & Paperboard Segment: Indigenous Paper and Paperboard segment produces all the main varieties of paper that are in demand in the market, viz., writing and printing, packaging grade paper, newsprint and speciality paper.
Ø Newsprint: The Newsprint sector in the
country is governed by the Newsprint Control Order (NCO), 2004.
Ø The mills listed under the
schedule of this order are exempt from excise duty, subject to actual user
condition.
Ø Salt Industry: India continues to hold third position in the
production of salt in the world after China and USA
Ø Explosives: There are 50 explosive manufacturing plants and 168
mixed explosive plants in the medium and small-scale sector, engaged in the
production of explosives.
Ø Light Electrical Industry Sector: The light electrical industry is a
diverse sector having a number of distinct products and sub-products.
Ø It includes goods like
electrical wires and cables, transmission tower, cranes, lifts and escalators,
refrigerators, washing machine, air conditioners, storage batteries, dry cell
batteries, electrical lamps and tubes etc.
Ø Electrical Wires and Cables:
Electrical Wires and Cables industry is one of the earliest industries
established in the country. A wide range of wires and cables are manufactured
in the country which includes communication cables.
Ø Transmission Towers: They
support high voltage transmission lines which carry electricity over long
distance. These lines typically feed into sub-station so that the electrical
voltage can be reduced to a level that can subsequently be used by the
customers.
Ø Cranes: Cranes and hoists are an important category of material
handling equipment required by almost all sectors across the industry. Wide
range of cranes are manufactured in the country.
Ø Lifts and Escalators: The use of lifts and escalators is increasing
rapidly due to substantial investments in construction.
Ø Refrigerators: In India,
refrigerators have the highest aspiration value of all consumer durables with
the exception of television. The refrigerator industry has become highly
competitive. A number of brands have entered the market and the consumers have
wider choices.
Ø Washing Machines: The washing machine market in the country can be
divided into semi-automatic and fully-automatic. With rising incomes and higher
aspirations, there is a gradual shift towards higher capacity and
fully-automatic washing machines.
Ø Air Conditioners: Air Conditioners (ACs) are gradually being treated
as a necessity in changed socioeconomic environment with changing lifestyle.
Ø Lead Acid Storage Batteries:
Lead acid batteries are accumulators of current and power which is discharged
over a period of time. They are used in vehicles and also for various
industrial uses such as for backup power for UPS application, control rooms,
power stations, telecommunications, etc.
Ø Ferrous Castings: Ferrous castings
are pivotal to the growth and development of engineering industries since these
constitute essential intermediates for automobiles, industrial machinery, power
plants, chemical and fertiliser plants. Indian foundry industry is the third
largest in the world.
Ø Water Pollution Control
Equipment: Due to growing awareness regarding water pollution and stringent
environmental control standards being enforced for various uses including
process industries, the water/waste water treatment industry is poised for huge
growth.
Ø The various categories of water pollution control equipment broadly
include wastewater treatment plants, drinking water treatment plants and effl
uent treatment plants.
Ø Air Pollution Control
Equipment: Industrialisation and urbanisation have resulted in a profound
deterioration of India’s air quality. India’s most severe environmental
problem, come in several forms, including vehicular emissions and untreated
industrial smoke.
Ø Hence, the pollution control
equipment industry has acquired importance. Further judicial pronouncements
have given a defi nite direction and urgency for adoption of air pollution
control measures.
Heavy Industries
Ø The Ministry of Heavy Industries (MHI) promotes the development and
growth of automobile, capital goods and heavy electrical equipment sectors and
administer 29 Central Public Sector Enterprises (CPSEs) engaged in
manufacturing, consultancy and contracting services and four autonomous
organisations. In 2021, the Department of Public Enterprises was shifted to
Ministry of Finance.
Ø One of the key thrust areas of MHI is aimed at transforming mobility
in the country by increasing competitiveness of domestic automobile industry
and promoting advanced technology, sustainable and affordable electric mobility
solutions for the citizens.
Micro, Small and Medium
Enterprises
Ø The Micro, Small and Medium Enterprises (MSME) sector has emerged as
a highly vibrant and dynamic sector of the Indian economy over the last fi ve
decades. MSMEs not only play crucial role in providing large employment
opportunities at comparatively lower capital cost than large industries but
also help in industrialisation of rural and backward areas, thereby reducing
regional imbalances, assuring more equitable distribution of national income
and wealth.
New Defi nition of MSMEs
Ø Some new composite criteria of classifi cation for manufacturing and service units were notifi ed in 2020, with guidelines to facilitate the present and prospective entrepreneurs. To begin with it removed the difference between manufacturing and service sectors. Also, a new criterion of turnover has been added in the previous list of criteria based only on investment in plant and machinery.
Ø Classifi cation of MSMEs will be as:
· a micro enterprise is where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed fi ve crore rupees;
· a small enterprise is where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fi fty crore rupees; and
·
a medium is where the
investment in plant and machinery or equipment does not exceed fi fty crore
rupees ar.d turnover does not exceed two hundred and fi fty crore rupees.
MSME Samadhaan
Ø Sections 15-24 of the Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006 are there to tackle the issues relating to the
delayed payments to Micro and Small Enterprises (MSEs) by the buyers to the MSE
suppliers.
MSME Sambandh
Ø Ministry of MSME launched “MSME-SAMBANDH Portal” in 2017. The portal
helps in monitoring the procurement by central government ministries,
departments and Central Public Sector Enterprises (CPSEs) and also enables them
to share the list of required products/services from MSEs.
MSME Sampark
Ø A job portal called “MSME SAMPARK” was launched in 2018. This portal
is a digital platform wherein jobseekers (i.e., passed out trainees/students of
MSME Technology Centres) and recruiters can register themselves for mutually
benefi cial interaction.
Khadi and Village
Industries Commission
Ø Khadi and Village Industries Commission (KVIC) established under the
Act of Parliament, and as amended in 1987 and 2006 is a statutory organisation
under the Ministry of MSME engaged in promoting and developing Khadi and Village
Industries (KVI) for providing employment opportunities in the rural areas,
thereby strengthening the rural economy
Coir Board
Ø The Coir Board is a statutory body established under the Coir
Industry Act, 1953, for promoting overall development of the coir industry and
improvement of the living conditions of the workers engaged in this traditional
industry.
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