As the government is set to introduce the new industrial policy after two decades, it is looking for new and specific inputs for a “wider” focus, The Indian Express reported.
As the government is set to introduce the new industrial policy after two decades, it is looking for new and specific inputs for a “wider” focus, The Indian Express reported. The last industrial policy was implemented in 1991. The government aims to finalise the new industrial policy within this fiscal and is seeking specific inputs from state and ministries for promoting manufacturing and private investment, said the report. “We wanted every ministry to specifically suggest and layout, in view of the five-year vision document they have been preparing, what schemes they want to put in this policy. This was discussed in the last meeting that took place with them (two weeks ago),” DPIIT Secretary Guruprasad Mohapatra told The Indian Express.
According to the report, the Department for Promotion of Industry and Internal Trade, however, has not received the response from states it was looking for. It wants the state bodies to come up with precise areas they want to focus on, so the policy can be drafted taking the suggestions into account. The department further said that the industrial policy is still in the nascent stage. While the department has collected sufficient material and enough consultations, it still wants to work on the details minutely and hold discussions with states. The policy aims to boost manufacturing in India as the sector is expected to account for 20 per cent of the country’s $5-trillion economy target, the report said.
“The broad goal is to give a boost to manufacturing, which has many complexities,” said Guruprasad Mohapatra. He further emphasized the need to keep employment in mind as manufacturing is getting more automated. Moreover, the government looks to resolve issues regarding the ease of doing business. It aims to develop clusters for backward and forward linkages in the supply chain, the report added.
The government has also acknowledged that there are 14 priority sectors that would need stimulus in order to boost manufacturing to $1 trillion which includes metals and mining, tourism, capital goods and renewable energy among others. Further, DPIIT is working to understand all the “how’s” in terms of attractive policy incentives for investments, easier processes and availability of credit to these sectors at affordable rates. According to the report, the framework of the policy will be created in a way which will enable more private investment in priority sectors.