Industrial Policy Resolutions

Anila Remadevi
Kerala State Civil Service Academy
Industry
Anila Remadevi
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Industrial Policy Resolution, 1956
Reservation of industries ,licensing and public sector expansion
Schedule A This schedule had 17 industrial areas in which the Centre was given complete
monopoly
Schedule B consists of 12 industrial areas put under this schedule in which the state
governments were supposed to take up the initiatives with a more expansive follow up by
theprivate sector. This schedule also carried the provisions of compulsory licencing
Schedule C All industrial areas left out of Schedules A and B were put under this in
whichthe private enterprises had the provisions to set up industries.
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Industrial Policy Statement, 1969
Exploitation of resources for the development of all
Priority of resource exploitation for the industries
Price-control of the goods produced by the licenced industries
Checking concentration of economic power
Channelising investment into desired direction

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Core industries was created. The industries which were offundamental importance for the development of
industries were put in this category such as iron and steel, cement, coal, crude oil, oil refining and electricity. In
the future, these industries came to be known as basic industries, infrastructure industries in the country.
Out of the six core industries defined by the policy, the private sector may apply for licences for the industries
which were not a part of schedule A of the Industrial Policy, 1956. The private firms eligible to apply for such
licences were supposed to have their total assets at ₹20 crore or more.
Some industries were put under the reserved list in which only the small or medium industries could be set up.
The concept of ‘joint sector’ was developed which allowed partnership among the
Centre, state and the private sector while setting up some industries. The governments had the discretionary
power to exit such ventures in future. Here, the government wantedto promote the private sector with state
support.
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The Government of India had been facing the foreign

exchange crunch during that time.
To regulate foreign exchange the Foreign Exchange

Regulation Act (FERA) was passedin 1973.
A limited permission to foreign investment was given, with

the multinational corporations (MNCs) being allowed to set
up subsidiaries in the country.
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Foreign investment in the

Decentralised industrialisation
unnecessary areas were
was given attention with the
prohibited (opposite to the IPS Emphasis on village industries
objective of linking themasses to
of1973 which promoted foreign with a redefinition of the small
the process of industrialisation.
investment via technology and cottage industries.
The District Industries Centres
transfer in the areas of lack
(DICs) were set
ofcapital or technology).
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Democratic decentralisation Serious attention was given on

got emphasised and the khadi the level of production and
and village industries were the prices of essential
restructured. commodities of everyday use.
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Industrial Policy Resolution, 1980
The ‘MRTP Overall liberal

Foreign
Limit’ was attitude
investment via
revised upward Industrial followed
the technology The DICs were
to ₹50 crore to licencing was towards the
transfer route continued with.
promote setting simplified. expansion of
was allowed
of bigger private
again .
companies. industries.
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Industrial Policy Resolution,Kerala
1985 State&
Civil1986
Service Academy
Foreign investment was
further simplified with
more industrial areas
being open for their
entries. The dominant
method of foreign
investment remained as The provision of industrial
in the past, i.e., licencing was simplified.
technology transfer, but Compulsory licencing
now the equity holding of now remained for 64
the MNCs in the Indian industries only. High level
subsidiaries could be up attention on the sunrise
to 49 per cent with the industries such as
Indian partner holding telecommunication,
the rest of the 51 per computerisation and
cent shares. electronics.
The ‘MRTP Limit’ was Modernisation and the

revised upward to ₹100 profitability aspects of
crore—promoting the public sector
idea of bigger companies. undertakings were
emphasised.
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The agriculture sector was

attended with a new scientific
approach with many technology
Industries based on imported missions being launched by the
raw materials got a boost. government.
Under the overall regime of

FERA, some relaxations
concerning the use of foreign
exchange was permitted so that
essential technology could be
assimilated into Indian
industries and international
standard could be achieved.
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Industrial Policy 1991
De reservation except
• (i) Atomic energy and nuclear research and other related activities, i.e., mining, use
management, fuel fabrication, export-import, waste management, etc., of radioactive
minerals (none of the nuclear powers in the world have allowed entry of private sector
players in these activities, thus no such attempts look logical in India, too).
• (ii) Railways (many of the functions related to the railways have been allowed private
entry, but still the private sector cannot enter the sector as a full-fledged railway
service provider).
De licenising except
• (i) Aero space and defence related electronics
• (ii) Gun powder, industrial explosives and detonating fuse
• (iii) Dangerous chemicals
• (iv) Tobacco, cigarette and related products
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MRTP Limits abolished
Abolished compulsory phased production
Abolished compulsory loan to share conversion
FEMA and increased foreign investment

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Impact
Industrial growth has also recorded a slowdown. This is because of decreasing demand of industrial products due to various
reasons such as cheaper imports, inadequate investment in infrastructure etc.
In a globalised world, developing countries are compelled to open up their economies to greater flow of goods and capital from
developed countries and rendering their industries vulnerable to imported goods.
Cheaper imports have, thus, replaced the demand for domestic goods.
Domestic manufacturers are facing competition from imports.
The infrastructure facilities, including power supply, have remained inadequate due to lack of investment.
Globalisation is, thus, often seen as creating conditions for the free movement of goods and services from foreign countries that
adversely affect the local industries and employment opportunities in developing countries.
Moreover, a developing country like India still does not have the access to developed countries’ markets because of high non-tariff
barriers.
For example, although all quota restrictions on exports of textiles and clothing have been removed in India, U.S.A. has not
removed their quota restriction on import of textiles from India and China
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Make In India
Inspire confidence in India’s

Reach out to a vast local and
capabilities amongst Provide a framework for a
global audience via social
potential partners abroad, vast amount of technical
media and constantly keep
the Indian business information on 25 industry
them updated about
community and citizens at sectors.
opportunities, reforms, etc.
large.
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Industrial Corridors
Delhi-Mumbai
Industrial Corridor
(DMIC)
Chennai-
Amritsar Kolkata
Bengaluru
Industrial
Industrial
Corridor (AKIC)
Corridor (CBIC)
Bengaluru-
Vizag-Chennai
Mumbai
Industrial
Economic
Corridor (VCIC)
Corridor (BMEC)
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Ease of Doing Business
Starting a
Business
Resolving
Insolvency Dealing with Construction Permits
Enforcing Getting
Contracts Electricity
Trading across Registerin

Borders g Property
Paying Getting
Taxes Protectin Credit
g
Minority
Investors
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Textile industry
• India is the world’s second largest producer of

textiles and garments.
• The domestic textile and apparel market is
estimated to be US$ 100 billion in previous year
and by 2025 it will be US$ 220 billion
• 100 per cent FDI (automatic route) is allowed in
the Indian textile sector
• Direct and indirect employment to 4.5 crore of
workers in textiles sector
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Era of TUFs.
• Technology Upgradation Fund Scheme , Restructured TUF Scheme
(RTUFS), Revised Restructured Technology Upgradation Fund Scheme
(RR-TUFS). and Amended Technology Upgradation Fund Scheme (A-
TUFS) :
• Technology Upgradation Fund Scheme (TUFS), a flagship scheme of the
Ministry of Textiles (MOT) was introduced in 1999 to catalyze investment in
all the sub-sectors of textiles industry for technology upgradation of the
machinery by way of interest reimbursement of 5 % .

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• Restructured TUF Scheme (RTUFS) was launched in 2011 where there

were overall caps and sectoral caps . Technology Upgradation Fund
Scheme for the textiles & jute industries in Revised Restructured ws
undertaken in 2013 and had hire purchase for handloom sector and
MSME outlay earmarking
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Export Orientation of Textile Industry
• Merchandize Exports from India (MEIS) Scheme

(2015) gives duty reward of 2-5% of FOB value to
Category A (Traditional Markets), Category B
(Emerging & Focus Markets) and Category C (Other
Markets).
• Interest Equalization Scheme (2015) on pre ,post
shipment rupee export credit ( five years) can curb
extensive from Vietnam, China etc
• Duty Drawback Scheme
• Market Access initiative ,Market Development
Assistance
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• Apparel Parks for Exports Scheme (APES) :for

imparting focussed thrust for setting up of apparel
manufacturing units of international standards at
potential growth centres. 75% of the capital expenditure
will be incurred by the State Government on the
infrastructural facilities, 25% by the agency - limited to a
maximum of INR10 crores. INR 5 crores for setting up of
an effluent treatment plant,creche/s, any multi purpose
centre/hall for marketing /display etc. Grant upto 50% of
the cost of any training facility created in the park - upto
a maximum of INR2 crores.
• Textile Centre Infrastructure Development Scheme
(TCIDS) :
• Industrial Entrepreneur Memorandum (IEMS) :
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• National Handloom Development

Programme
• Weavers’ Mudra Scheme: Weavers’ Mudra
Scheme was launched to provide concessional
credit to the handloom weavers. Margin Money
Assistance to a maximum of ₹ 10,000 per weaver
and credit guarantee for a period of 3 years is
also provided.
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Technical Textile industry
• Technical Textiles are futuristic and nice segment of textiles, which

are used for various applications ranging from agriculture, roads,
railway tracks, sportswear, health on one end to bullet proof jacket,
fire proof jackets, high altitude combat gear and space applications
on other end of spectrum. Technical textiles are textiles materials
and products manufactured primarily for technical performance and
functional properties rather than aesthetic characteristics.
• Technical Textiles products are divided into 12 broad categories
(Agrotech, Buildtech, Clothtech, Geotech, Hometech, Indutech,
Mobiltech, Meditech, Protech, Sportstech, Oekotech, Packtech)
depending upon their application areas.
• India shares nearly 6% of world market size of 250 Billion USD.
However, the annual average growth of the segment is 12%, as
compared to 4% world average growth. Penetration level of
technical textiles is low in India at 5-10%, against 30-70% in
advanced countries. The Mission aims at improving penetration level
of technical textiles in the country.
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National Technical Textiles Mission :
• The Mission will focus on usage of technical textiles in various

flagship missions, programmes of the country including strategic
sectors. The use of technical textiles in agriculture, aquaculture,
dairy, poultry, etc. Jal Jivan Mission; Swatchh Bharat Mission
• Ayushman Bharat will bring an overall improvement in cost
economy, water and soil conservation, better agricultural
productivity and higher income to farmers per acre of land holding
in addition to promotion of manufacturing and exports activities in
India.
• The use of geo-textiles in highways, railways and ports will result in
robust infrastructure, reduced maintenance cost and higher life cycle
of the infrastructure assets. Promotion of innovation amongst young
engineering/ technology/ science standards and graduates will be
taken up by the Mission
• Creation of innovation and incubation centres and promotion of
‘start-up’ and ‘ventures’.
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• The Scheme for Integrated Textile Parks

(SITP) (2005) to provide the industry with state
of the art world-class infrastructure facilities for
setting up their textile units and to meet
international environmental and social standards.
.
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National Textiles Policy 2000
• Facilitate the Textile Industry to attain and sustain a pre-eminent

global standing in the manufacture and export of clothing
• Equip the Industry to withstand pressures of import penetration and
maintain a dominant presence in the domestic market
• Liberalise controls and regulations so that the different segments of
the textile industry are enabled to perform in a greater competitive
environment
• Enable the industry to build world class state-of-the-art
manufacturing capabilities in conformity with environmental
standards, and for this purpose to encourage both Foreign Direct
Investment as well as research and development in the sector
• Develop a strong multi-fibre base with thrust of product
upgradation and diversification
.
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• Sustain and strengthen the traditional knowledge, skills and

capabilities of our weavers and craftspeople; Enrich human resource
skills and capabilities, with special emphasis on those working in the
decentralised sectors of the Industry and for this purpose to
revitalize the Institutional structure
• Expand productive employment by enabling the growth of the
industry, with particular effort directed to enhancing the benefits to
the north east region
• Make Information Technology (IT), an integral part of the entire
value chain of textile production and thereby facilitate the industry
to achieve international standards in terms of quality, design and
marketing and
• Involve and ensure the active co-operation and partnership of the
State Governments, Financial Institutions, Entrepreneurs, Farmers
and NonGovernmental Organisations in the fulfilment of these
objectives
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Fertilizer Industry
• Fertilizer demand is basically demand for

• Bulk of the requirement of feedstock for manufacture of nitrogenous
fertilizers is available from domestic sources
• With regard to phosphates, bulk of the requirement of raw
materials/ intermediates is met through imports as there is very
limited availability of raw materials, viz, rock phosphate and sulphur
in the country. Phosphate demand is fulfilled through a mix of
following three options:
• (i) Domestic production based on indigenous/imported rock
phosphates and imported sulphur
• (ii) Domestic production based on imported intermediates, namely,
ammonia and phosphoric acid
• (iii) Imported finished fertilizers
• Lack of commercially exploitable reserves of potash in the country
and the entire requirement of potash for direct application as well as
for production of complex fertilizers is fulfilled through imports.
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Pharma Industry
• Generic Drugs potential and one of the market leader .

• Performance is good for export value of bulk actives and
dosage forms. Indian exports are destined to more than 200
countries around the globe including highly regulated markets of
US, West Europe, Japan and Australia.
• Foreign Direct Investment (FDI) policy in the pharmaceutical
sector in order to allow FDI up to 100 per cent under the automatic
route for manufacturing of medical devices subject to certain
conditions.
• Pharmaceuticals Purchase Policy (PPP)(2013-2018) was approved
by the Cabinet for a period of five years in respect of 103 medicines
manufactured by Pharma CPSUs and their subsidiaries. The policy
is applicable to purchases by Central/ State Government
departments and their Public Sector Undertakings etc. The pricing
of the products is done by National Pharmaceutical Pricing
Authority (NPPA). The procuring entity can purchase from Pharma
CPSUs and their subsidiaries .But it was extended.
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• Indian pharmaceutical industry is the 3rd largest in the world

by volume and 14th largest in terms of value. India contributes
3.5% of total drugs and medicines exported globally. However,
despite these achievements, India is significantly dependent
on import of some of the critical basic raw materials, viz., bulk
drugs that are used to produce the finished dosage
formulations. India imports bulk drugs largely for economic
considerations. Bulk drugs accounted for 63% of the total
pharmaceutical imports in the country during 20 18-19.
• Promotion of Bulk Drug Parks: 3000 crore outlay for the
creation of bulk drug parks which are designated contiguous
area of land with common infrastructure facilities for the
exclusive manufacture of APIs or Dis or KSMs.
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Why the sector is robust ?
• Large domestic pharma companies have continued to grow,

assuming leadership position in many therapies and segments in the
Indian market as well as creating a strong international exports back-
bone.
• Competitive market with the emergence of a number of second-tier
Indian companies with new and innovative business modules
• Indian players have also developed expertise in significant biologics
capabilities.Biologic portfolios while still nascent in India are being
built with an eye on the future.
• Multinational companies have continued to invest significantly in
India and are making their presence felt across most segments of
the Indian pharma market. Companies have also begun to invest in
increasing their presence in tier II cities and rural areas and making
medical care more accessible to a large section of the Indian
population.
• Cost effective production, R&D costs, technology cost and
innovative scientific manpower.
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• Promotion of Medical Devices Parks:The parks

will provide common testing and laboratory
facilities! centre at one place reducing the
manufacturing cost significantly and create a
robust ecosystem for medical device
manufacturing in the country.
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Petrochemical Industry
• Government has emphasized on achieving energy security of

the country with a target of reducing import dependence i.e.
usage of fossil fuels by 10% from 2014- 15 levels by the year
2022. This target it to be achieved by adopting a five
pronged strategy which includes, Increasing Domestic
Production, Adopting Biofuels & Renewable, Energy
Efficiency Norms, Improvement in Refinery Processes and
Demand Substitution.
• First Generation Ethanol Blended Petrol (EBP), (2003
)resolved to supply ethanol blended petrol in nine States and
four Union Territories for sale of 5% ethanol blended Petrol.
EBP Programme is aimed at achieving multiple outcomes such
as; reducing import dependency, conserving foreign
exchange, reducing carbon emissions and provide boost to
agriculture sector.
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• Second Generation (2G) Ethanol :thrust is being given

to Advanced Biofuels such as Second Generation (2G)
Ethanol, BioCNG/ Compressed BioGas (CBG), UCO based
biodiesel etc. which can be sourced from wastes such as
crop residues, Biomass, industrial waste, sewage water
etc. and are abundantly available in the Country.
• Pradhan Mantri JI-VAN Yojana :To incentivize 2G
Ethanol sector and support this nascent industry by
creating a suitable ecosystem for setting up commercial
projects and increasing Research & Development,
Government of India 2019 launched "Pradhan Mantri
DIVAN (Jaiv lndhan- Vatavaran Anukool fasal awashesh
Nivaran) Yojana" as a tool to create 2G Ethanol capacity
in the country and attract investments in this new sector
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• National Policy on Biofuels-2018

• Biodiesel Purchase Policy (2005):Under this policy OMCs are to
purchase Biodiesel (B 100), meeting the fuel quality standard
prescribed by BIS for blending with HSD to the extent of 5% at
identified purchase centres across the country.
• Compressed Bio-Gas (CBG) which has more than 90 % methane
content. Further, Compressed Bio-Gas has properties similar to the
commercially available natural gas and can be used as an alternative,
renewable automotive fuel.
• Sustainable Alternative Towards Affordable Transportation
(SATAT): SATAT initiative envisages establishing 5000 CBG plants
across the country with an estimated production of 15 MMT CBG
per annum by 2022-23.
• Auto Fuel Vision and Policy-2025 in 2012 focuses on Advanced
Engine Design , Ultra Low Sulphur1 in the fuel and Advanced
Emission Controls
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Steel Industry
• Vulnerable to cheaper imports and demand fluctuation.

• Slump in domestic steel consumption and decrease in
investment across sectors have affected the overall growth
and profitability of the steel industry.
• Steel industry contributes slightly more than 2% to the GDP of
the country
• India is currently the world’s second largest producer of crude
steel
• India was net exporter 2016 to 2018 but became net importer
in 2018 onwards
• India allows for 100% foreign direct investment (FDI) under
the automatic route. This has paved the way for huge
investments in the India’s steel sector by foreign countries
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• Construction sector: The sector includes physical

infrastructure (excluding railways) and real estate,
and contributes roughly 62% of India’s steel use or
steel demand.
• Bharatmala programme , Sagarmala programme ,
Urja Ganga Gas Pipeline Project , National
Investment and Manufacturing Zones
(NIMZs),AMRUT, Metro construction
• Consumer durables: The sector contributes about
5% of India’s steel demand.The liquidity crisis in the
shadow banking sector, high interest rates and
uncertainty during the general elections led to a
significant decline in consumer durables
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• Railways : This sector, which contributes 3% of steel demand,

is growing at a fast pace. 100% track electrification
(electrification of 16,540 track km by 2021–22), dedicated
freight corridors (of over 3350 km) connecting industrial hubs
in western and eastern India and high-speed rail corridors are
expected to boost steel demand.
• Capital goods: The sector contributes about 15% of steel
demand. It has several sub-segments, of which machinery and
equipment are the most prominent. The machinery and
equipment segment can be further divided into construction
and earth-moving machinery, plant machinery, heavy
electrical machinery and machine tools.
• Intermediate products: The sector contributes the remaining
6% of India’s steel demand. This segment is closely linked to
the auto sector as well as the oil and gas sector, besides
industrial activity.
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Automobiles
• The Indian automotive industry is the fourth largest

in the world. It contributes to around 9% of steel
demand in India. India is the largest manufacturer of
two-wheelers, threewheelers and tractors, the fourth
largest producer of passenger vehicles, and the
seventh largest in commercial vehicles in the world.
Two-wheelers occupy a dominant position with an
81% market share and overall passenger vehicles
compose 13% of the market. India’s automobile
sector is domestic market oriented, with domestic
sales accounting for over 80% of sales
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Automotive Mission Plan 2016-26
• Automotive Mission Plan 2016-26 (AMP 2026) in

2015. The plan outlines the vision for all sub-
segments in terms of size, global footprint and
technological maturity, etc. It aims at sustained
automotive growth and bringing India at par
with the global auto giants
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National Steel Policy in 2017
• Steel-making capacity is expected to reach 300 million tonnes

per annum by 2030–31.
• Crude steel production is expected to reach 255 million
tonnes by 2030–31, at 85% capacity utilisation.
• Production of finished steel to reach 230 million tonnes,
assuming a yield loss of 10% for conversion of crude steel to
finished steel – that is, a conversion ratio of 90%.
• With 24 million tonnes of net exports, consumption is
expected to reach 206 million tonnes by 2030–31.
• As a result, per capita steel consumption is anticipated to rise
to 160 kg.
• An additional investment of INR 10 lakh crore is envisaged
• India will export 24 million tonnes of steel annually and
imports will be nil
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Make in India
• Make India the most preferred investment destination

• Ease of Doing Business, FDI reforms, skill development, infrastructure
creation and fiscal incentives.
• The Government has put in place a comprehensive FDI policy regime by
bringing more activities under the automatic route, increasing sectoral caps
and easing conditionalties. In addition to this, a number of measures have
been undertaken to ease the business environment of the country.
• Invest India :national investment promotion and facilitation agency, Invest
India focuses on sector-specific investor targeting and development of new
partnerships to enable sustainable investments in India. In addition to a core
team that focuses on sustainable investments, Invest India also partners with
substantial investment promotion agencies and multilateral organizations.
Invest India also actively works with several Indian states to build capacity as
well as bring in global best practices in investment targeting, promotion and
facilitation areas.
• Champion Sectors
• Public Procurement
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Champion Sectors
• (i)Aerospace and Defence

• ii. Automotive & Auto Components
• iii. Pharmaceuticals and Medical Devices
• iv. Bio-Technology
• v. Capital Goods
• vi. Textiles and Apparels
• vii. Chemicals and Petro-Chemicals
• viii. Electronics System Design and Manufacturing (ESDM)
• ix. Leather & Footwear
• x. Food Processing
• xi. Gems and Jewellery
• xii. Shipping
• xiii. Railways
• xiv. Construction
• xv. New and Renewable Energy
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National Manufacturing Policy
• Increase manufacturing sector growth to 12-14% over the medium

term to make it the engine of growth for the economy. The 2 to 4 %
differential over the medium term growth rate of the overall
economy will enable manufacturing to contribute at least 25% of the
National GDP by 2022.
• Increase the rate of job creation in manufacturing to create 100
million additional jobs by 2022.
• Creation of appropriate skill sets among the rural migrant and
urban poor to make growth inclusive. iv. Increase domestic value
addition and technological depth‘ in manufacturing.
• Enhance global competitiveness of Indian manufacturing through
appropriate policy support.
• Ensure sustainability of growth, particularly with regard to the
environment including energy efficiency, optimal utilization of
natural resources and restoration of damaged/ degraded eco-
systems
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• Foreign investments and technologies will be welcomed while

leveraging the country's expanding market for manufactured
goods to induce the building of more manufacturing
capabilities and technologies within the country;
• Competitiveness of enterprises in the country will be the
guiding principle in the design and implementation of policies
and programmes;
• Compliance burden on industry arising out of procedural and
regulatory formalities will be reduced through rationalization
of business regulations.
• Innovation will be encouraged for augmenting productivity,
quality, and growth of enterprises; and v. Effective consultative
mechanism with all stake holders will be instituted to ensure
mid-course corrections.
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Improving industrial sector in India
• i. Rationalization and simplification of business

regulations;
• ii. Simple and expeditious exit mechanism for closure of
sick units while protecting labour interests;
• iii. Financial and institutional mechanisms for technology
development, including green technologies;
• iv. Industrial training and skill up gradation measures; v.
Incentives for SMEs;
• vi. Special Focus Sectors;
• vii. Leveraging infrastructure deficit and government
procurement - including defence;
• viii. Clustering and aggregation : National Investment
and Manufacturing Zones (NIMZs); ix. Trade Policy.
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National IPR Policy
• The Union Cabinet has approved the National Intellectual

Property Rights (IPR) Policy on 12th May, 2016 that shall lay
the future roadmap for IPRs in India. The Policy recognises the
abundance of creative and innovative energies that flow in
India, and the need to tap into and channelize these energies
towards a better and brighter future for all.
• The National IPR Policy is a vision document that
encompasses and brings to a single platform all IPRs. It views
IPRs holistically, taking into account all inter-linkages and thus
aims to create and exploit synergies between all forms of
intellectual property (IP), concerned statutes and agencies. It
sets in place an institutional mechanism for implementation,
monitoring and review. It aims to incorporate and adapt
global best practices to the Indian scenario.
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Objectives OF NIPR Policy
• To create public awareness about the economic, social and

cultural benefits of IPRs among all sections of society
• To stimulate the generation of IPRs
• To have strong and effective IPR laws, which balance the
interests of rights owners with larger public interest
• To modernize and strengthen service oriented IPR
administration.
• To strengthen and expand human resources, institutions and
capacities for teaching, training, research and skill building in
IPRs.
• To strengthen the enforcement and adjudicatory mechanisms
for combating IPR infringements
• Get value for IPRs through commercialization
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Key initiatives under Self Reliant India 1.0
• 3 lakh crores Collateral-free Automatic Loans for

Businesses, including MSMEs
• The Emergency Credit Line Guarantee Scheme
(ECLGS) has been formulated as a relief measure to
the MSMEs by providing them additional funding of
up to 3 lakh crores in the form of a fully guaranteed
emergency credit line.
• The borrowers with up to 25 crores outstanding
and 100 crores turnover are eligible.
• This scheme provides 100 per cent credit guarantee
cover to Banks and NBFCs on principal and interest.
No guarantee fee, no fresh collateral is required.
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Credit Guarantee Fund Trust for Micro
Keralaand Small
State Civil Service Academy
Enterprises (CGTMSE)
• Credit Guarantee Fund Trust for Micro and Small Enterprises

(CGTMSE)
• Collateral-free credit to the micro and small enterprise sector.
Both the existing and the new enterprises are eligible to be
covered under the scheme.
• Fund and non-fund based (Letters of Credit, Bank Guarantee
etc.) credit facilities up to Rs 200 lakh per eligible borrower are
covered under the guarantee scheme provided they are
extended on the project viability without collateral security or
third party guarantee.
• 20,000 crores Subordinate Debt for Stressed MSMEs. Banks
are expected to provide the subordinate-debt to promoters of
such MSMEs equal to 15 per cent of the existing stake in the
unit subject to a maximum of 75 lakhs.
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• 50,000 crores equity infusion through MSME Fund of

Funds
• Government has revised the definition of MSME by
raising the investment limit. An additional criteria of
turnover has been introduced and distinction between
manufacturing and service sector stands removed
• General Financial Rules (GFR) of the Government
amended to disallow global tender enquiries in
government procurement of goods and services of value
of less than 200 crores.
• e-market linkage for MSMEs to act as a replacement for
trade fairs and exhibitions. The MSME receivables from
the Government and the CPSEs to be released in 45 days
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• Income tax refunds to nearly 8.2 lakh small businesses worth 5,204 crores
• Relief of 1500 crores to MUDRA- Shishu loans: GoI to provide interest
subvention of 2 per cent to prompt payees for a period of 12 months. Small
business under MUDRA to be benefited.
Enhancement of ease of doing business through the Insolvency and
Bankruptcy Code (IBC) related measures which include
• (a) raising of the minimum threshold to initiate insolvency proceedings to ` 1
crores from ` 1 lakhs (which largely insulates the MSMEs)
• (b)special insolvency resolution framework for the MSMEs under Section
240A of the Code
• (c) suspension of fresh initiation of insolvency proceedings for up to one
year depending upon the pandemic situation
• (d) empowering the Central Government to exclude COVID 19 related debt
from the definition of “default” under the Code for the purpose of triggering
insolvency proceedings.
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• Packages for Power Sector- 90,000 crores

liquidity injection for DISCOMs
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Real Estate Sector Boost
• Treat COVID-19 as an event of ‘Force Majeure’ under

RERA.
• Extend the registration and completion date suo-
moto by 6 months for all registered projects expiring
on or after 25th March 2020 without need for
individual applications.
• Regulatory Authorities may extend this for another
period of up to 3 months, if needed
• Issue fresh ‘Project Registration Certificates’
automatically with revised timelines.
• Extend timelines for various statuary compliances
under RERA concurrently
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Public Sector Enterprise policy
• List of strategic sectors requiring presence of PSEs in

public interest will be notified
• In strategic sectors, at least one enterprise will
remain in the public sector but private sector will
also be allowed
• In other sectors, PSEs will be privatized (timing to be
based on feasibility etc.)
• To minimize wasteful administrative costs, number
of enterprises in strategic sectors will ordinarily be
only one to four; others will be privatized/merged/
brought under holding companies
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Atmanirbhar Bharat 2.0
• 25,000 crores as additional capital expenditure to

the Ministry of Road Transport and Ministry of
Defence
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Atmanirbhar Bharat 3.0
• 1.46 lakh crores boost for Atmanirbhar manufacturing

production-linked incentives for 10 Champion Sectors
• 18,000 crores additional outlay for PM Awaas Yojana
(PMAY) –Urban
• Support for construction & infrastructure – relaxation of
Earnest Money Deposit (EMD) & performance security
on Government tenders
• 1.10 lakh crores platform for infra debt financing – 6000
crores equity infusion in National Investment and
Infrastructure Fund (NIIF) Debt Platform,
• 10,200 crores additional budget outlay will be provided
towards capital and industrial expenditure for domestic
defence equipment, industrial incentives, industrial
infrastructure, and green energy
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Production Linked Incentives
• The scheme will make Indian manufacturers globally

competitive, attract investment in the areas of core
competency and cutting-edge technology
• ensure efficiencies, create economies of scale,
enhance exports, provide conducive manufacturing
ecosystem
• make India an integral part of the global supply
chain especially for the 10 sectors identified under
the scheme.
• Further the scheme will also establish backward
linkages with the MSME sector in the country which
in turn will lead to more inclusive growth and create
huge employment opportunities.
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Priority Sectors Implementing Ministry/Department Approved financial outlay over a five-year
period Rs.crore
1. Advance Chemistry NITI Aayog and Department of Heavy Industries 18100

Cell (ACC) Battery
2. Electronic/Technology Products Ministry of Electronics and Information Technology 5000
3. Automobiles Department of Heavy Industries 57042

& Auto Components
4. Pharmaceuticals drugs Department of Pharmaceuticals 15000
5. Telecom & Networking Products Department of Telecom 12195
6. Textile Products: MMF segment and technical Ministry of Textiles 10683

textiles
7. Food Products Ministry of Food Processing Industries 10900
8. High Efficiency Solar PV Modules Ministry of New and Renewable Energy 4500
9. White Goods (ACs & LED) Department for Promotion of Industry and Internal Trade 6238
10. Speciality Steel Ministry of Steel 6322
Total 145980
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• ACC battery manufacturing represents one of the largest economic

opportunities of the twenty-first century for several global growth sectors,
such as consumer electronics, electric vehicles, and renewable energy. The
PLI scheme for ACC battery will incentivize large domestic and international
players in establishing a competitive ACC battery set-up in the country.
• India is expected to have a USD 1 trillion digital economy by 2025.
Additionally, the Government's push for data localization, Internet of Things
market in India, projects such as Smart City and Digital India are expected to
increase the demand for electronic products. The PLI scheme will boost the
production of electronic products in India.
• The automotive industry is a major economic contributor in India. The PLI
scheme will make the Indian automotive Industry more competitive and will
enhance globalization of the Indian automotive sector.
• The Indian pharmaceutical industry is the third largest in the world by
volume and 14th largest in terms of value. It contributes 3.5% of the total
drugs and medicines exported globally. India possesses the complete
ecosystem for development and manufacturing of pharmaceuticals and a
robust ecosystem of allied industries. The PLI scheme will incentivize the
global and domestic players to engage in high value production.
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• Telecom equipment forms a critical and strategic element of building a

secured telecom infrastructure and India aspires to become a major original
equipment manufacturer of telecom and networking products. The PLI
scheme is expected to attract large investments from global players and
help domestic companies seize the emerging opportunities and become big
players in the export market.
• The Indian textile industry is one of the largest in the world and has a share
of ~5% of global exports in textiles and apparel. But India's share in the
manmade fibre (MMF) segment is low in contrast to the global
consumptionpattern, which is majorly in this segment. The PLI scheme will
attract large investment in the sector to further boost domestic
manufacturing, especially in the MMF segment and technical textiles.
• The growth of the processed food industry leads to better price for farmers
and reduces high levels of wastage. Specific product lines having high
growth potential and capabilities to generate medium- to large-scale
employment have been identified for providing support through PLI
scheme.
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• Large imports of solar PV panels pose risks in supply-chain resilience

and have strategic security challenges considering the electronic
(hackable) nature of the value chain. A focused PLI scheme for solar
PV modules will incentivize domestic and global players to build
large-scale solar PV capacity in India and help India leapfrog in
capturing the global value chains for solar PV manufacturing.
• White goods (air conditioners and LEDs) have very high potential of
domestic value addition and making these products globally
competitive. A PLI scheme for the sector will lead to more domestic
manufacturing, generation of jobs and increased exports.
• Steel is a strategically important industry and India is the world's
second largest steel producer in the world. It is a net exporter of
finished steel and has the potential to become a champion in certain
grades of steel. A PLI scheme in Specialty Steel will help in
enhancing manufacturing capabilities for value added steel leading
to increase in total exports.
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No. Sectors Implementing Financial outlays

Ministry/Department Rs. crore
1. Mobile Manufacturing and Specified MEITY 40951

Electronic
Components
2. Critical Key Starting materials/Drug Department of Pharmaceuticals 6940

Intermediaries and Active Pharmaceutical
Ingredients
3. Manufacturing of Medical 3420

Devices.
Total 51311
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Production Linked Incentives
• Production Linked Incentive Scheme (PLI) for Large

Scale Electronics Manufacturing noffers a production
linked incentive to boost domestic manufacturing and
attract large investments in mobile phone manufacturing
and specified electronic components, including
Assembly, Testing, Marking and Packaging (ATMP)
units. The Scheme would tremendously boost the
electronics manufacturing landscape and establish India
at the global level in electronics sector.
• The scheme shall extend an incentive of 4% to 6% on
incremental sales (over base year) of goods
manufactured in India and covered under target
segments, to eligible companies, for a period of five
(5) years subsequent to the base year as defined.
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• Second Round of the PLI Scheme has been

approved by the Competent Authority. The
target segment for the purpose of this round
shall be Specified Electronic Components.
• Under the Second Round, incentives of 5% to
3% shall be extended on incremental sales (over
base year i.e. 2019-20) of goods manufactured in
India and covered under the target segment, to
eligible companies, for a period of four (4) years.
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Production Linked Incentive Scheme (PLI) for IT
Hardware
• Production Linked Incentive Scheme (PLI) for IT
Hardware offers a production linked incentive to
boost domestic manufacturing and attract large
investments in the value chain.
• The Scheme shall extend an incentive of 4% to 2% /
1% on net incremental sales (over base year) of
goods manufactured in India and covered under the
target segment, to eligible companies, for a period
of four (4) years.
• The Target Segment under PLI shall include (i)
Laptops (ii) Tablets (iii) All-in-One PCs and (iv)
Servers.
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Electronics Manufacturing Clusters (EMC) scheme
• To make India a global player in the field of

Electronics Manufacturing and to offset disabilities
faced by industries for reliable infrastructure,
Electronics Manufacturing Clusters (EMC) scheme to
provide support for creation of world-class
infrastructure for attracting investments in the
Electronics Systems Design and Manufacturing
(ESDM) Sector.
• Greenfield EMC - 50% of project cost subject to a
ceiling of Rs. 50 crore per every 100 acres of land.
• Brownfield EMC - 75% of the project cost subject to
a ceiling of Rs. 50 crore per project.
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Modified Special Incentive Package Scheme (M-SIPS)
• To promote large scale manufacturing in the country, M-

SIPS was announced by the Government in July, 2012 to
offset disability and attract investments in Electronics
System Design and Manufacturing (ESDM) Industries.
• The scheme provides incentive for investments on capital
expenditure- 20% for investments in Special Economic
Zones (SEZs) and 25% in non-SEZs.
• Capital Subsidy - 20% for investments in Special
Economic Zones (SEZs) and 25% in non-SEZs.
• Incentives for both new units and expansion units.
• Incentives for a period of 5 years from the date of
approval of application.
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National Investment and Infrastructure Fund
Limited (NIIFL)
• National Investment and Infrastructure Fund Limited (NIIFL) is a
collaborative investment platform for international and Indian investors,
anchored by the Government of India.
• NIIFL invests across asset classes such as infrastructure, private equity and
other diversified sectors in India, with the objective to generate attractive
risk-adjusted returns for its investors.
• NIIF Master Fund primarily invests in operating assets in core infrastructure
sectors such as transportation and energy.
• NIIF Fund of Funds invests in funds managed by best-in-class fund
managers focused on some of the most dynamic sectors in India such as
climate infrastructure, middle-income & affordable housing, digital
consumer platforms and other allied sectors.
• NIIF Strategic Opportunities Fund is a Private Equity fund which aims to
build scalable businesses across a range of opportunity long but capital
short sectors.
• The NIIF Strategic Opportunities Fund has set up a Debt Platform
comprising an NBFC Infra Debt Fund and an NBFC Infra Finance
Company.
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Equity infusion by Government of Rs 6000 crores
in NIIF Debt Platform will benefit
• Aseem Infrastructure Finance Limited (AIFL): It is

an IFC (Infrastructure Finance Company), established
with the aim of playing a transformative role in
growth of Indian infrastructure debt financing.
• NIIF Infrastructure Finance Limited (NIIF-IFL): It
was incorporated as an Infrastructure Debt Fund
(IDF) in 2014 for financing operating infrastructure
projects.
• Rs 6,000 crores will be invested as equity in the NIIF
Debt Platform over two financial years, i.e., 2020-21
and 2021-22.
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• The strategy is AIFL will predominantly focus on under construction /

greenfield / brownfield assets with less than one year of operations.
NIIF Infrastructure Debt Financing Platform will have its own in-house
appraisal system, which will enable faster deployment of funds.
• NIIF IFL (NBFC-IDF) will operate as a take-out vehicle for mature operating
assets. It will help infrastructure investors in replacing high cost bank
finance with cheaper IDF finance post-commissioning.
• Over the next 5 years (NIP Plan Period), NIIF Infrastructure Debt Financing
Platform can potentially support the construction of infrastructure projects
worth Rs.100,000 crore.
• The Platform will also need to raise external long-term equity capital as well
as debt from both domestic and international markets over the next few
years which could result in a multiplier of 14 -18 times of the proposed
capital infusion of up to Rs. 6,000 crore from GOI.
• NIIF will make strong efforts to use the equity investments by Government
to catalyse equity investments by Domestic and Global Pension, Insurance
and Sovereign Wealth Funds in the NIIF Infrastructure Debt Financing
Platform.
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National Infrastructure Platform (NIP)
• National Infrastructure Platform (NIP), investment in

infrastructure sector is targeted at Rs.111 lakh crore
over the next 5 years across various sub-sectors,
creating substantial need for debt financing.
• This would require at least Rs 60 to 70 lakh crores in
debt financing.
• This current environment requires well-capitalized
specialized infrastructure focused financial
institutions, such as the ones being developed by
National Investment and Infrastructure Fund (NIIF),
which can focus on lending across the project life
cycle with a strong capital base and expertise driven
approach.
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SPECS
• The Scheme for Promotion of Manufacturing of

Electronic Components and Semiconductors
(SPECS) will help offset the disability for domestic
manufacturing of electronic components and
semiconductors in order to strengthen the electronics
manufacturing ecosystem in the country.
• The scheme will provide financial incentive of 25% on
capital expenditure for the identified list of electronic
goods that comprise downstream value chain of
electronic products, i.e., electronic components,
semiconductor/ display fabrication units, ATMP units,
specialized sub-assemblies and capital goods for
manufacture of aforesaid goods, all of which involve high
value added manufacturing.
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Modified Electronics Manufacturing Clusters
• Modified Electronics Manufacturing Clusters (EMC 2.0)

Scheme is with the objective to address the disabilities, by
providing support for creation of world class infrastructure
along with common facilities and amenities, including Ready
Built Factory (RBF) sheds / Plug and Play facilities for
attracting major global electronics manufacturers along with
their supply chain to set up units in the country.
• This Scheme will fortify the linkage between domestic and
international market by strengthening supply chain
responsiveness, consolidation of suppliers, decreased time-to-
market, lower logistics costs, etc.
• The EMC 2.0 Scheme provides financial assistance for setting
up of both EMC projects and Common Facility Centres (CFCs)
across the country.
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• Industrial activities recovered sharply except the

mining sector, which is still at lower levels as
compared to the pre-lockdown levels
• A similar pattern has been observed in all the major
indices captured under the Used Based Classification
.
• However, performance of the primary goods sector,
which has a weight of 34.05 per cent was sluggish as
compared to its counterparts in the IIP.
• Mining and Primary goods are still in lower
levels
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• The weight of the items that recorded growth was 46.05 per
cent in November-2020, which was significantly higher than
5.87 per cent in the month of April-2020
• The rate of growth of Gross Capital Formation (GCF) in
industry registered a sharp rise from 1.2 per cent in FY18
to 17.5 per cent in FY19, showing a substantive improvement
in GCF in the sector.
• Mining & Quarrying, Manufacturing, 'Electricity, Gas,
Water Supply & Other Utility Services and Construction
had registered a growth rate of 14.9 per cent, 15.9 per cent,
15.3 per cent, and 24.4 per cent respectively in FY19.
• However, the share of GCF of the industrial sector had
declined from 38.2 per cent in FY12 to 30.2 per cent of GDP in
FY18 before an uptick (31.9 per cent) was recorded in FY19.
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Gross Bank Credit
• Gross bank credit to the industrial sector, on a

YoY basis, recorded (-) 1.7 growth in October-
2020 as compared to 3.4 per cent growth in
October-2019
• All Engineering, Cement & Cement Products
and Basic Metal & Metal Products recorded a
YoY negative growth in October-2020
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CPSE
• Number of PSEs in the strategic sector will ideally be limited to four–

others would either be merged or privatized or brought under
holding companies. Further, the CPSEs in the non-strategic sectors
would be privatized as per guidelines issued.
• Completely revamp the Boards of the CPSEs to reorganize their
structure, enhance their operational autonomy coupled with strong
corporate governance norms including listing on stock exchanges
for greater transparency.
• Department of Public Enterprises has separately initiated revamping
of Performance Monitoring system of the CPSEs to make it more
objective and forward-looking based on sectoral
indices/benchmarks.
• Also, certain reforms in the direction of timely closure of sick and
loss making the CPSEs and disposal of their assets have been
initiated.
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CPSE
• There are 366 CPSEs as of March 2020.

• Of these, 256 are in operation, but only 171 CPSEs
booked profit during FY20.
• The total profit of profit-making CPSEs was 1.38 lakh
crores in FY20, whereas the consolidated loss of loss-
making enterprises was 44,816 crores.
• The overall net profit of theCPSEs declined by 34.6
per cent to reach 93,295 crore in FY20 from 1.43
lakh crore in FY19.
• CPSEs are operating in 4 sectors –Agriculture, Mining
& Exploration, Manufacturing, and Services.
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Doing Business Report 2020
• As per the DBR 2020 report, the lead subcomponents of EoDB

were ‘getting electricity’, ‘trading across borders’ and
others whereas the main laggards were ‘enforcing
contracts’, ‘registering property’, ‘revoking insolvency’,
and ‘pay taxes’.
• India has improved its position in 7 out of 10 indicators,
inching up to the international best practices. The DBR, 2020
acknowledges India as one of the top 10 improvers, the third
time in a row, with an improvement of 67 ranks in three years.
It is also the highest jump by any large country since 2011
• The major causes of worry are the subcomponents that are
laggards in both cross-section and an inter-temporal analysis
like ‘registering the property’ and ‘enforcing the contracts
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“Startup India, Stand-up India” initiative.
• The action plan is based on the three pillars

“Simplification and Handholding”, “Funding Support
and Incentives”, and “Industry-Academia Partnership
and Incubation”.
• Start ups Intellectual Property Protection (SIPP)
scheme enables a start-up to seek assistance from any
empanelled facilitator to file and prosecute their
application. The facilitator can claim payment for the
services given to the start up from the Office of the
Controller General of Patents, Designs and Trademarks
on submission of certificate in prescribed format
• The Fund of Funds for Startups (FFS) with a total
corpus of Rs. 10,000 crores was established
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• Start upYatra (an initiative that travels to Tier 2 and

Tier 3 cities of India to search for entrepreneurial
talent by conducting day long bootcamps) has been
conducted across 23 States in 207 districts impacting
78346 aspiring entrepreneurs. A total of 1,424
incubation offers have been given to the start ups as
a result of this initiative.
• Start up have been provided 80 per cent rebate in
patent filing fees and 50 per cent rebate on
trademark filing fees. Additionally, facility of
expedited examination of patent applications to
reduce the time taken in granting patents is also
available to the start ups
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FDI
• The bulk of FDI equity flow is in the non-

manufacturing sector leading to a reduction in the
share of manufacturing in the FDI flows
• Within the manufacturing sector, industries like
automobile, telecommunication, metallurgical,
non-conventional energy, chemical (other than
fertilizers), food processing, and petroleum &
natural gas get the bulk of FDI equity flows. These
industries together accounted for about 67 per cent
of FDI equity flows into the manufacturi.ng sector in
FY20
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STEEL
• Steel is one of the critical inputs to industries, urban

development and infrastructure development.
• Taking cognizance of the requirement of this critical input in
these crucial pillars of economic growth, the National Steel
Policy, 2017 (NSP-17) envisioned significant expansion in
production capacity while being globally competitive.
• The NSP-17 aims at achieving a crude steel capacity of 300
million tonnes (MT) and a finished steel capacity of 230
MT with a per capita consumption of 158 kg by 2030-31
• India isthe second-largest producer of crude steel only after
China. India is also the secondlargest consumer of steel.
However, its per capita total finished steel consumption was
around 74.7 kg during FY20 as against the global average of
229 kg. Further, the capacity utilization in crude steel plants
continues to be low
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Steel
• Various initiatives under the Atmanirbhar Abhiyan to enhance

the domestic production of steel such as inclusion of
‘speciality steel’ incorporating four different product
categories for incentives under the production linked incentive
(PLI) scheme
• Offering steel to MSMES that are members of engineering
export promotion council at export parity price under the duty
draw back scheme of DGFT
• Measures to provide preference to domestically produced iron
and steel in government procurement, where aggregates
estimate of iron and steel products exceeds 25 crores
• Protecting the industry from unfair trade through appropriate
remedial measures including imposition of anti-dumping duty
and countervailing duty on the products in which unfair trade
practices were adopted by other countries.
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Coal
• Coal is the one of the most important and abundant

fossil fuel in India. It accounts for 55 per cent of the
country’s energy needs.
• Coal is not only the primary source of energy in the
country but is also used as an intermediary by many
industries such as steel, sponge iron, cement, paper,
brick-kilns, et
• India is also an importer of coal Industry and
Infrastructure 283 importing 248.54 MT of coal in FY20, a
growth of 5.7 per cent over FY19.
• The energy supply in India is heavily coal-dependent.
Nevertheless, the GoI has taken many measures to strike
a balance between energy needs and environment
friendliness
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Clean Coal
• • Creating carbon sink: About 54500 ha land has been

brought under green cover by planting 132 million trees
- estimated carbon sink of 2.7 lakh tonnes of CO2
equivalent/year. Plan to cover 20000 ha of additional
area by plantation of around 50 million trees by 2030.
• Two Coal Bed Methane (CBM) Projects with considerable
potential for carbon footprint reduction are in the
pipeline
• Surface coal gasification projects (100 million tonnes
(MT) coal by 2030) with relatively lesser carbon footprint.
• First mile connectivity projects: transportation of coal
from pitheads to dispatch points.
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• Several amendments were brought into the Coal

Mines (Special Provisions) Act, 2015 through the
Mineral Laws (Amendment) Act, 2020 enacted on
13.03.2020.
• A total of 11 coal blocks are allocated under Mines
and Minerals(Regulation and Development) (MMDR)
Act. Further, directions had been issued to
Nominated Authority for allocation of 25 coal blocks
by auction for sale of coal
• Of the auction of 38 coal mines for commercial
mining in June-2020, 19 were successfully auctioned
(a success rate of 50 per cent as compared to 30 per
cent in the past).
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CHAMPIONS
• On 9th May, 2020, the GoI launched CHAMPIONS

online platform to help and handhold the MSMEs.
• ‘CHAMPIONS’ stands for Creation and Harmonious
Application of Modern Processes for Increasing the
Output and National Strength.
• It is an ICT based technology system aimed at
making the smaller units big by solving their
grievances, encouraging, supporting, helping and
handholding them throughout the business lifecycle.
• The platform facilitates a single window solution for
all the needs of the MSMEs.
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Textile
• The textile and apparel industry plays an important

role in the overall social and economic development
of the country.
• The textile and apparel industry contributed 2 per
cent in the overall GDP and 11 per cent of total
manufacturing GVA in FY20 and provided total direct
and indirect employment of about 10.5 crore people.
• The sector is the second-largest employment
generator in the country, next only to agriculture.
Most important with a major part of this workforce
being women, it plays a vital role in women
empowerment and in the overall social development
of the country.
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• The GoI is implementing several schemes cutting across sectors such

as the Amended Technology Upgradation Fund Scheme (ATUFS),
Scheme for Integrated textiles park (SITP) and a scheme called
Samarth. ATUFS, is a revised version of TUFS and has the objective to
modernize and upgrade the technology of the Indian textile
industry.
• SITP is for providing world class infrastructure facilities. Of the 56
textile parks which were sanctioned under SITP, 23 have been
completed so far.
• Samarth focusses on capacity building in the textile sector. In
addition, other schemes specific to silk, jute, wool, handloom and
handicraft sectors are also being implemented.
• India is the sixth-largest exporter of textile and apparel products
after China, Germany, Bangladesh, Vietnam, and Italy. India is well
known in the global market for many products including cotton
yarn, fashion garments, hand-made carpets, etc.
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National Infrastructure Pipeline (NIP)
• National Infrastructure Pipeline (NIP) for the FY

2020-2025 to facilitated world class infrastructure
projects to be implemented. This first of its kind
initiative will boost the economy, generate better
employment opportunities, and drive the
competitiveness of the Indian economy.
• It is jointly funded by the Central Government, State
Government, and the private sector .The NIP was
launched with the projected infrastructure
investment of 111 lakh crore ($1.5 trillion) during
the period 2020-2025 .
• The sectors like energy, roads, urban infrastructure,
railways have a major share in the NIP

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Anila Remadevi

Kerala State Civil Service Academy

Reservation of industries ,licensing and public sector expansion

Exploitation of resources for the development of all

Priority of resource exploitation for the industries

Price-control of the goods produced by the licenced industries

Checking concentration of economic power

Channelising investment into desired direction

The Government of India had been facing the foreign

To regulate foreign exchange the Foreign Exchange

A limited permission to foreign investment was given, with

Foreign investment in the

Democratic decentralisation Serious attention was given on

The ‘MRTP Overall liberal

The ‘MRTP Limit’ was Modernisation and the

The agriculture sector was

Under the overall regime of

MRTP Limits abolished

Abolished compulsory phased production

Abolished compulsory loan to share conversion

FEMA and increased foreign investment

Domestic manufacturers are facing competition from imports.

Inspire confidence in India’s

Trading across Registerin

• India is the world’s second largest producer of

• Technology Upgradation Fund Scheme , Restructured TUF Scheme

(RTUFS), Revised Restructured Technology Upgradation Fund Scheme

(RR-TUFS). and Amended Technology Upgradation Fund Scheme (A-

• Technology Upgradation Fund Scheme (TUFS), a flagship scheme of the

Ministry of Textiles (MOT) was introduced in 1999 to catalyze investment in

all the sub-sectors of textiles industry for technology upgradation of the

machinery by way of interest reimbursement of 5 % .

• Restructured TUF Scheme (RTUFS) was launched in 2011 where there

• Merchandize Exports from India (MEIS) Scheme

• Apparel Parks for Exports Scheme (APES) :for

• National Handloom Development

• Technical Textiles are futuristic and nice segment of textiles, which

• The Mission will focus on usage of technical textiles in various

• The Scheme for Integrated Textile Parks

• Facilitate the Textile Industry to attain and sustain a pre-eminent

• Sustain and strengthen the traditional knowledge, skills and

• Fertilizer demand is basically demand for

• Generic Drugs potential and one of the market leader .

• Indian pharmaceutical industry is the 3rd largest in the world

• Large domestic pharma companies have continued to grow,

• Promotion of Medical Devices Parks:The parks

• Government has emphasized on achieving energy security of

• Second Generation (2G) Ethanol :thrust is being given

• National Policy on Biofuels-2018

• Vulnerable to cheaper imports and demand fluctuation.

• Construction sector: The sector includes physical

• Railways : This sector, which contributes 3% of steel demand,

• The Indian automotive industry is the fourth largest

• Automotive Mission Plan 2016-26 (AMP 2026) in

• Steel-making capacity is expected to reach 300 million tonnes

• Make India the most preferred investment destination

• (i)Aerospace and Defence

• Increase manufacturing sector growth to 12-14% over the medium

• Foreign investments and technologies will be welcomed while

• i. Rationalization and simplification of business

• The Union Cabinet has approved the National Intellectual

• To create public awareness about the economic, social and

• 3 lakh crores Collateral-free Automatic Loans for

• Credit Guarantee Fund Trust for Micro and Small Enterprises