Industrial policy means Rules, Regulations , Principles, Policies and Procedures laid down by government for regulating, development, and controlling industrial undertakings in the country. It prescribes the respective roles of the Public, Private, Joint, and Co-operative sectors for the development of Industries. It also indicates the role of the large, medium and small scale sector. It incorporates fiscal and monetary policies, tariff policy, labour policy, and the Government attitude towards foreign capital, and role to be played by multinational corporations in the development of the industrial sector.

1. By,
Khalid Bin Rahiem
Madhusudhan
Kalhari
Mohammed Saqib

2. • Industrial policy means Rules, Regulations ,
Principles, Policies and Procedures laid down by
government for regulating, development, and
controlling industrial undertakings in the
country.
• It prescribes the respective roles of the Public,
Private, Joint, and Co-operative sectors for the
development of Industries.
• It also indicates the role of the large, medium
and small scale sector.
• It incorporates fiscal and monetary policies,
tariff policy, labour policy, and the Government
attitude towards foreign capital, and role to be
played by multinational corporations in the
development of the industrial sector.

3.  Industrial policy statements have been
announced from 1948 onwards.
 A number of objectives have been projected
by the government of India while making
industrial policy declarations.
 Some of the important objectives can be
identified as follows:
 Achieving a socialistic pattern of society.
 Preventing undue concentration of economic
power.
 Achieving industrial development.
 Reducing disparities in regional development.

4.  Providing opportunities for gainful
employment.
 Achieving a self- sustained economy.
 Achieving faster economic growth.
 Alleviating poverty.
 Protecting and dev eloping a healthy small -
scale sector.
 Updating technology and modernization of
industry.
 Liberalization and Globalization of economy.

5. Industrial Policy
1948 & 1956
Khalid

6.  The Government of India announced its first
industrial policy resolution on 6 April,1948.
 The Policy resolution laid stress on the role
of the state in development of Industry.
 The industrial activities were divided into
four broad areas:
 1 Items under central Government control-
Manufacture of arms and ammunition, the
production and control of atomic energy,
ownership and management of railway transport,
etc.

7.  2 Items under the state Government control-
 Coal , Iron and steel, Aircraft manufacture,
shipbuilding, Manufacturing of Telephone,
Telegraph and wireless apparatus, excluding
radio receiving sets, mineral oils, etc.
3 Items of basic importance (planed & regulated
by central Government,)- Salt, Automobiles
and Tractors, Electric Engineering, other
heavy machines ,Machine tools , Heavy
Chemicals, Fertilizers and pharmaceuticals ,
Power, Cotton and Woolen textiles, and
Cement, Sugar, Paper and Newsprint, etc.

8.  Items for Private Sector-
 The rest of the Industrial field will be
open to Private Enterprises.
 It also Emphasized on securing a
continuous increase in production and its
equitable distribution.
 Importance was given to Small Scale and
cottage Industries.

9.  Industrial policy Resolution (30 April , 1956) was
also regarded as the “ Economic Constitution of
India”.
 Major Objectives of Industrial Policy Resolution
(30 April ,1956) are as follows:
 Improvement in living standard and working
conditions for the mass of people.
 To reduce disparities in income and wealth.
 To prevent private monopolies and concentration
of Economic power.
 Development of Transport facilities.

10.  Undertake state trading on an increasing
scale.
 Planned and rapid development.
 Expand public sector.
 Disparities in levels of development
between different regions should be
progressively reduced.

11. Industrial Policy
1973, 1977 & 1980
Madhusudhan

12.  It provided for a closer interaction between the
agricultural and industrial sectors. Accorded the highest
priority to the generation and transmission of power.
 An exhaustive analysis of industrial products was made
to identify products which are capable of being
produced in the small scale sector.
 The list of industries exclusively reserved for the small
scale sector was expanded from 180 items to more than
500 items.
 Within the small scale sector, a tiny sector was also
defined with investment in machinery and equipment
upto Rs.1 lakh and situated in towns with a population
of less than 50,000 according to1971 census figures,
and in villages.
 Special legislation to protect cottage and household
industries was also proposed to be introduced.

13.  The Government would promote the development of a
system of linkages between nucleus large plants and the
satellite ancillaries
 To boost the development of small scale industries, the
investment limit in the case of tiny units was enhanced
to Rs.2 lakh, of a small scale units to Rs.20 lakh and of
ancillaries to Rs.25lakh.
 A scheme for building buffer stocks of essential raw
materials for the Small Scale Industries was introduced
for operation through the Small Industries Development
Corporations in the States and the National Small
Industries Corporation in the Centre.
 Industrial processes and technologies aimed at optimum
utilisation of energy or the exploitation of alternative
sources of energy would be given special assistance,
including finance on concessional terms.

14.  Correction of regional imbalances;
 Maximum production and achieving higher
productivity; Higher employment generation;
 Strengthening of the agricultural base
through agro based industries;
 Promotion of export-oriented industries;
 Promotion of economic federalism through
equitable spread of investment and dispersal
of returns;
 Consumer protection against high prices and
bad quality.

15. Industrial Policy
1985,1991
Kalhari

16. • The year 1985 has witnessed a wide array
of industrial policy initiatives.
• In March 1985 , the government
announced the de-licensing of 25 broad
categories of industries.
• In June 1985 de-licensing was extended.
• In December 1985 de-licensing was
extended to MRTP and FERA companies.

17.  25 July 1991 The new economic policy was
introduced has gone through several changes
in areas.
 Main Features
1. Liberalization
2. Privatization
3. Globalization

18.  Liberalization refers to the relaxation of the
previous government restriction usually in
area of social and economic policies. When
government liberalized trade, it means it has
removed the tariff, subsidies and other
restrictions on the flow of goods and services
between the countries.

19.  Abolishing licensing requirement in most of the
industries except a short list,
 Freedom in deciding the scale of business activities
i.e., no restrictions on expansion or contraction of
business activities,
 Removal of restrictions on the movement of goods
and services,
 Freedom in fixing the prices of goods and services,
 Reduction in tax rates and lifting of unnecessary
controls over the economy,
 Simplifying procedures for imports and exports, and
 Making it easier to attract foreign capital and
technology to India.

20. Privatization means transfer of ownership
and/or management of an enterprise from
the public sector to the private sector. It also
means the withdrawal of the state from an
industry or sector partially or fully.
Privatization is opening up of an industry
that has been reserved for public sector to
the private sector.

21.  The new set of economic reforms aimed at giving
greater role to the private sector in the nation
building process and a reduced role to the public
sector.
 To achieve this, the government redefined the role
of the public sector in the New Industrial Policy of
1991.
 The purpose of the same, according to the
government, was mainly to improve financial
discipline and facilitate modernization.
 It was also observed that private capital and
managerial capabilities could be effectively utilized
to improve the performance of the PSUs.
 The government has also made attempts to improve
the efficiency of PSUs by giving them autonomy in
taking managerial decisions.

22.  Globalization implies integration of the
economy of the country with the rest of the
world economy and opening up of the
economy for foreign direct investment by
liberalizing the rules and regulations and by
creating favorable socio-economic and
political climate for global business.

23.  Globalization is the outcome of the policies of liberalization and
privatization already initiated by the Government.
 Globalization is generally understood to mean integration of the
economy of the country with the world economy. It is a complex
phenomenon to understand and apply into practice.
 It is an outcome of the set of various policies that are aimed at
transforming the world towards greater interdependence and
integration.
 It involves creation of networks and activities transcending
economic, social and geographical boundaries.
 Globalization involves an increased level of interaction and
interdependence among the various nations of the global
economy.
 Physical geographical gap or political boundaries no longer
remain barriers for a business enterprise to serve a customer in a
distant geographical market across the globe.

24.  Development and utilization of
capabilities in technology and
manufacturing as well as its
up gradation to world standard.
 Development of the capital market and
increasing competitiveness.
 Promoting workers participation in
management.
 Developing industries in backward areas.
 All sector industries were encouraged to
grow.

25. Industrial Policy
2014
Mohammed Saqib

27.  To Ease Business
 Facilitating industrial growth
 Enhancing manufacturing and service sectors
through private sector participation.
 To achieve inclusive industrial infrastructure
development in the state
 To promote environmentally sustainable
industrial growth and balanced regional
development

28.  Creation of quality infrastructure with
comprehensive facilities
 Human recourse development through capacity
building and skill up gradation.
 Facilitation mechanism and procedural reforms
 Promotions of MSMEs
 Special thrust for encouraging SC/ST
entrepreneurs.
 Encouragement to women entrepreneurs.
 Encouragement to Minorities, Backward Classes
physically challenged persons Ex- Servicemen
entrepreneurs.

29. Launched by Prime Minister Modi on 25th September 2014.
A major national initiative designed to facilitate
 Investment
 foster innovation
 enhance skill development
 protect intellectual property
 build best-in-class manufacturing infrastructure
There has never been a better time to make in India….!!!!

32.  Starting a Business
 Dealing with Construction Permits
 Getting Electricity
 Registering Property
 Getting Credit
 Protecting Minority Investors
 Paying Taxes
 Trading across Borders
 Enforcing Contracts
 Resolving Insolvence
Where India Stands..?
Ease of Doing Business
In 2015 – 164
In 2016 – 155
Getting Electricity
In 2015 – 99
In 2016 – 70
Protecting Interest of minority investors
2016-9
Rankings out of 189 countries
The Ease of Doing Business (EODB) index is a ranking system established by the World Bank Group

33. Types of investors
 Individual:
 FVCI (Foreign Venture Capital Investors)
 Pension/Provident Fund
 Financial Institutions
 Company:
 Foreign Trust
 Sovereign Wealth Funds
 NRIs (Non Resident Indians)/ PIOs (Persons of Indian
Origin)
 Foreign Institutional Investors:
 Private Equity Funds
 Partnership / Proprietorship Firm
 Others

34.  49% FDI under automatic route permitted in
Insurance and Pension sectors
 Foreign investment up to 49% in defence sector
permitted under automatic route
 FDI limit of 100% to Manufacturing of Small Arms and
Ammunitions covered under Arms Act 1959
 FDI up to 100% under automatic route permitted in
Teleports
 100% FDI under automatic route permitted in
Brownfield Airport projects
 In order to provide clarity to the e-commerce sector,
the Government has issued guidelines for foreign
investment in the sector 100%
etc.,

35. India
 Adani Group
 Aditya Birla Group
 Amul
 Apollo Hospitals
 Finolex Cables Limited
 JSW
 MRF Limited
 Patanjali
 Reliance Industries
 Tata Group
 TVS motors
UK
 Aviva
 GE Healthcare
 GlaxoSmithKline
USA
 Uber Technologies Inc.
 Salesforce
 Pepsi
 McD
 Kellogg
Others
 ABV Group(UAE)
 Aegon N.V.(Netherlands)
 Airbus(France)
 Apus Group(china)
 BMW(Germany)
 Cinepolis(Mexico)
 D-Link(Taiwan)
 Givaudan(Swiss)

37. Concept was introduced, But focused in 2016 policy

39. GDP growth rate

40. Industrial Policy
2016
Mohammed Saqib

41. • What if your idea is not just an idea?
• What if it sees light?
• What if it’s really born?
• What if you can get someone to believe in it?
• And help you nurture it?
• What if you can set a clear path for it?
• What if it can actually travel?
• What if it grows and blooms?
• What if the whole world embraces it?
• What if your idea is not just an idea?

42.  Start up India
 Stand up India
 Digital India
 Make in India
 women entrepreneurship
 Enhance FDI
 National manufacturing policy
(NMP)

43.  Provide employment to both skilled and
unskilled workforce
 To promote ease of doing Business to
create business friendly environment
 To provide pro-active support to micro,
small and medium enterprises
 Ensure effective implementation of the
policies
 To become a global hub for manufacturing

44.  One of the fastest growing economies in the world
 India is likely to grow at consistently higher rates
(>7%) and retain its position as one of the fastest
growing economies till 2020(Source: IMF)
 India accounted for 1.7% of global merchandise
exports in 2014, compared to 0.8% in early
2000(source: WTO trade stats 2015)
 Exports have increased at a Compound Annual Growth
Rate of 11.6% in FY 2010 to USD 310 billion in FY
2015 (Source: EXIM bank, WTO trade stats 2015)
 In recent years, India has emerged as one of the most
attractive destinations for EODB (World Bank)
 India ranks amongst the top 10 FDI destinations
globally - surpassing USD 50 billion in FY 2015-
16(Source: Ministry of Commerce)

45.  Launch of IPR policy
 Significant changes in FDI
 Industrial infrastructure
 KOREA PLUS
 Public financial management system

46.  Prime Minister Narendra Modi launched the ‘Stand up
India’ scheme on 5 April 2016 as part of the
government's efforts to support entrepreneurship among
women and SC & ST communities
 The scheme offers bank loans of between 10 lakh and 1
crore for SC and ST and women setting up new
enterprises outside of the farm sector
 Startup India is a flagship initiative of the Government
of India, intended to build a strong eco-system for
nurturing innovation and Startups in the country that
will drive
 sustainable economic growth
 generate large scale employment opportunities.
 Innovation & design

47.  Startup India campaign is based on an action
plan aimed at promoting bank financing for
start-up ventures to boost entrepreneurship
and encourage start ups with jobs creation
 Rural India's version of Startup India was
named the Deen Dayal Upadhyay Swaniyojan
Yojana

48.  Single Window Clearance even with the help of a mobile application
 10,000 crore fund of funds
 80% reduction in patent registration fee
 90-day exit window
 Freedom from mystifying inspections for 3 years
 Freedom from Capital Gain Tax for 3 years
 Freedom from tax in profits for 3 years
 Eliminating red tape
 Self-certification compliance
 Innovation hub under Atal Innovation Mission
 Starting with 5 lakh schools to target 10 lakh children for innovation
programme
 new schemes to provide IPR protection to start-ups and new firms
 encourage entrepreneurship.
 Stand India across the world as a start-up hub.[7]

49.  Compliance Regime based on Self-Certification
 Objective-To reduce the regulatory burden on Startups thereby allowing them to focus on
their core business and keep compliance cost low
 Startup India Hub
 Objective-To create a single point of contact for the entire Startup ecosystem and enable
knowledge exchange and access to funding
 Rolling-out of Mobile App and Portal
 Objective-To serve as the single platform for Startups for interacting with Government and
Regulatory Institutions for all business needs and information exchange among various
stakeholders
 Legal Support and Fast-tracking Patent Examination at Lower Costs
 Objective-To promote awareness and adoption of IPRs by Startups and facilitate them in
protecting and commercializing the IPRs by providing access to high quality Intellectual
Property services and resources, including fast-track examination of patent applications and
rebate in fees.
 Relaxed Norms of Public Procurement for Startups
 Objective-To provide an equal platform to Startups (in the manufacturing sector) vis-à-vis the
experienced entrepreneurs/ companies in public procurement
 Faster Exit for Startups
 Objective-To make it easier for Startups to wind up operations

50.  Providing Funding Support through a Fund
of Funds with a Corpus of INR 10,000 crore
for development and growth of innovation
driven enterprises
 To catalyse enterpreneurship by providing
credit to innovators accross all sections of
society
 Tax Exemption on Capital Gains
 Tax Exemption to Startups for 3 years
 Tax Exemption on Investments above Fair
Market Value

51.  Organizing Startup Fests for Showcasing Innovation
and Providing a Collaboration Platform
 Launch of Atal Innovation Mission (AIM) with Self-
Employment and Talent Utilization (SETU) Program
 Harnessing Private Sector Expertise for Incubator
Setup
 Building Innovation Centres at National Institutes
 Setting up of 7 New Research Parks Modeled on the
Research Park Setup at IIT Madras
 Promoting Startups in the Biotechnology Sector
 Launching of Innovation Focused Programs for
Students
 Annual Incubator Grand Challenge

52. PROPHET MUHAMMAD(Sallallaahu alaihi wasallam) says
“Cleanliness is Half of your Faith”
Target 2016 – 20 cities
Contracts
 India signed contract with USA to build Ajmer, Allahabad and
Visakhapatnam in the presence of Union Urban Development Minister M
Venkaiah Naidu
 Germany to develop Kochi, Coimbatore, Bhubaneswar as smart cities
 Singapore to develop Amaravati
 Spain to build Delhi
 Japan helping India develop its smart cities by investing US $ 4.5 billion in
the 1st phase of DMIC project

53.  Announced On 1ST July 2015
 Focused on Digital Infrastructure to every citizen,
Digital services & governance on demand and
Digital empowerment of citizens
Initiatives
 My govt platform
 Jeevan praman
 E-greetings portal
 Digital locker system
 E-Sign
 E-Hospital
 National scholarships portal
 eBooks platforms

54.  “Cities in the past were built on riverbanks
 They are now built along highways
 But in the future, they will be built based on availability
of optical fiber networks and next-generation
infrastructure”
 India’s Vision “Digital India,” has set an
ambitious plan to build 100 smart cities across
the country
Future
 Japan International Cooperation Agency(JICA)
has also taken up master planning for three
“Smart Cities” — Ponneri in Tamil Nadu,
Krishnapatnam in Andhra Pradesh and Tumkur in
Karnataka

55. 1. Smart governance
2. Smart energy
3. Smart Environment
4. Smart transportation
5. Smart IT & Communications:
6. Smart Buildings
7. Smart Health Hospitals
8. Smart Education
Mahatma Gandhi was asked in 1946 to describe the independent India he
wished to see. He said he wanted "not a pyramid but an oceanic circle" of
complete equality. -

56.  The Delhi-Mumbai Industrial Corridor
 The Chennai-Bangalore Industrial Corridor
 The Bangalore-Mumbai Economic Corridor

57.  Adjusting zoning codes to reduce business
cost
 Helping to facilitate walkable business
districts
 Simplifying local regulations for starting
new business
 Dedicate resources to economic gardening