Industrial Policy of economical.

1. SUBBMITTED TO:- KINJAL MISTRY
MADAM
MACRO ECONOMIC & BUSINESS
ENVIRONMENT
Industrial Policy

2. Group Member
 Mukesh Baraiya 14MBA006
 Bhadresh Beladiya 14MBA008
 Ajay Chauhan 14MBA012
 Keval Patel 14MBA062
 Manish Prajapati 14MBA082
 Yatin Patel 14PGDM019

3. Industrial Policy
 What is industrial policy ?
Industrial policy is a statement which defines the
role of government in industrial development.
 The industrial policy thus formally indicates the
spheres of activity of the public and the private
sectors.

4. Industrial Policy
 It covers rules, regulations, principles,
policies, & procedures laid down by
government for regulating &
controlling industrial undertakings in
the country.
 It prescribes the respective roles of the
public, private, joint, cooperative large,
medium & small scale sectors for the
development of industries.

5. Industrial Policy Contd...
 It incorporates fiscal & monetary policies,
tariff policy, labor policy.
 It shows the government attitude not only
towards external assistance but also
toward public & private sectors.

6. Main Objectives
 To achieve optimal utilization of human
resources
 To attain international competitiveness
and
 To transform India into a major partner
and player in the global arena

7. Introduction of DIPP
 The Department of Industrial Policy &
Promotion was established in 1995 and
has been reconstituted in the year 2000
with the merger of the Department of
Industrial Development.

8. Role & Function of DIPP
 Encouragement to foreign technology
collaborations at enterprise level and
formulating policy parameters for the
same;
 Administration of Industries
(Development & Regulation) Act, 1951

9. Role & Function of DIPP
 Formulation of policies relating to
Intellectual Property Rights in the fields
of Patents, Trademarks, Industrial
Designs and Geographical Indications of
Goods and administration of regulations,
rules made there under

10. Role & Function of DIPP
 Promoting industrial development of
industrially backward areas and the
North Eastern Region including
International Co-operation for
industrial partnerships and
 Promotion of productivity, quality and
technical cooperation.

11. Industrial Policies
 Industrial Policy Resolution of 1948
 Industrial Policy Resolution of 1956
 Industrial Policy Resolution of 1973
 Industrial Policy Resolution of 1977
 Industrial Policy Resolution of 1980
 The New Industrial Policy of 1991

12. Industrial Policy 1991
Policy focus is on –
Deregulating Indian industry;
Allowing the industry freedom and
flexibility in responding to market
forces and
Providing a policy regime that
facilitates and fosters growth of Indian
industry.

13. Industrial Policy 1991
 In pursuit of the industrial objectives,
Government decided to take a series of initiatives
in respect of the policies relating to the following
areas:
 Industrial Licensing
 Foreign Investment
 Foreign Technology Agreements
 Public Sector Policy
 MRTP Act

14. Industrial Licensing Policy
 The Industrial Policy Resolution of 1956 identified
the following three categories of industries:
 Those that would be reserved for development in public
sector.
 Those that would be permitted for development through
private enterprise with or without State participation.
 Those in which investment initiatives would ordinarily
emanate from private entrepreneurs.

15. Industrial Licensing Policy
 Industrial Licensing is governed by the
Industries (Development & Regulation)
Act, 1951.
 Industrial licensing was abolished for all
industries, except those specified (18
industries), irrespective of levels of
investment.

16. Foreign Investment
 Limit on foreign equity holdings raised from 40%
to 51% in a wide range of industries
 Foreign Equity Proposals need not to be
accompanied by Foreign Technology Transfer
Agreement
 Procedure for FDI streamlined by creating a
Foreign Investment Promotion Board to consider
individual application case by case

17. Foreign Technology Agreements
 Foreign technology agreements in high-priority
industries up to Rs. 1 crore were given automatic
permission.
 No permission was required for hiring foreign
technicians and foreign testing of indigenously
developed technologies.

18. Public Sector Policy
 List of industries reserved for the public (Schedule A)
reduced from 17 to 8
 List of sector reserved for dominance by public
sector (Schedule B) effectively abolished
 Disinvestment in selected public sector enterprise to
raise finance for development, bring in greater
accountability & help create a new culture in their
working for improved efficiency

19. MRTP Act
 Removed the threshold limits of assets in respect of MRTP
companies and dominant undertakings
 Eliminated the requirement of prior approval of Central
Government for
 Establishment of new undertakings
 Expansion of undertakings
 Merger, Amalgamation and Takeover
 Appointment of Directors under certain circumstances.
 The newly empowered MRTP Commission will be authorized
to initiative investigations on complaints received from
individual consumers or classes of consumers in regard to
monopolistic, restrictive and unfair trade practices.

21. Conclusion
 Industrial Policy of 1948 which adopted mixed economic system
approach, where in public and private sectors were to operate together
but the ground practicalities insisted to frame another Industrial Policy
within short period of time.
 The 1956 Industrial Policy Resolution gave effective space to the
centrally controlled industries, State controlled industries and Joint
ventures for industrial development. The Policy Resolution introduced
the proposals to liberalize the Industrial Policy by relaxations to MRTP
and FERA Acts, re- defining the investment limits, de- licensing and
exemption to same categories of industrial sector, incentives for export
promotion, broad banding of industries, introduction of cottage
industries and several other financial concessions

22.  The New Industrial Policy of 1991 became
liberalization, globalization and privatization and
towards this end, the Government introduced three
sets of reforms:- first, deregulation, delicencing,
decontrol and de-bureaucratisation of industrial
licensing system; two, liberalization of foreign trade
and currency transactions and third, institute several
measures to facilitate foreign direct investment
inflows. All these measures were launched in the year
1991 and since then, further liberalizations have been
introduced every year with each new budget.