With Industrial Revolution 4.0 knocking on doors, Department of Industrial Policy and Promotion (DIPP) is gearing up to step up the 1991 Industrial Policy of India with its thought over mid and long-term targets for the new industrial policy.
The reforming new industrial policy for a “future ready” India is likely to focus beyond industrial development by rather overcoming constraints like high duties (which influence import preferences), and undertaking taxation, MSMEs and innovations among others under its umbrella.
DIPP has had constituted six groups in June for the preparation in framing the new policy. Besides taxation, peer to peer funding for MSME financing, innovation and technology, reports on infrastructure, intellectual property rights (IPRs), ease of doing business, labour laws and employability of future workforce would be prepared by the groups. The draft is expected to be ready by somewhere around September-October.
The Industrial Policy will also lay more focus on small industries by promoting government programmes like Make in India, Skill India, Startup India and the foreign direct investment norms.
As per the DIPP website, industrial policy since 1991 has been more for facilitating the industrial development rather than anchoring it through permits and controls. Industrial licensing was abolished for most of the industries and there are only four industries, including defence and explosives, where licence is currently required.
It said that a number of initiatives have been taken for ease of doing business for industrial licensing, increasing initial validity period of those licences and simplification of application forms.