The policy would work in tandem with the Skill India Mission to improve employability of future workforce, and with the foreign trade policy to enhance India's share in global merchandise exports.
The Department for Promotion of Industry and Internal Trade (DPIIT) has prepared an initial draft industrial policy which targets to raise value addition in the manufacturing sector to USD 1 trillion by 2025, an official said.
The policy envisions to create globally competitive business enterprises which can generate gainful employment and sustainable livelihoods.
It entails creating industry that is equipped with innovation, technology; financially viable and environment friendly; and whose benefits are shared by all sections of the society, the official added.
The initial draft policy is being circulated to seek views of different ministries and departments.
The policy would work in tandem with the Skill India Mission to improve employability of future workforce, and with the foreign trade policy to enhance India’s share in global merchandise exports.
It would also enable harmonious implementation of macro fiscal and monetary policies and ensure that incentive regime for industry is competitive.
Further, it will work to revive investments into industry and manufacturing with a balanced focus on both quantity and quality of investments.
The draft has also proposed a detailed implementation mechanism of the policy under which it has suggested setting up of a national industrial competitiveness council and a steering committee.
The new industrial policy was prepared and sent to the cabinet by the department last year but some new suggestions were made and now it is being reworked by the DPIIT.
This will be the third industrial policy after the ones released in 1956 and 1991. It will replace the industrial policy of 1991 which was prepared in the backdrop of the balance of payments crisis.