Government Working On New Industrial Policy

New Delhi: The government is working on a new industrial policy with a view to promoting and developing frontier technologies, innovation and enhancing competitiveness of domestic products.

“With the changing manufacturing scenario, introduction of new technologies, innovation, R&D, artificial intelligence and automation, there is a need to completely revamp the industrial policy of 1991. We are working on that,” a senior official said.

The official said the new policy would focus on several areas like ways to encourage innovation, further simplification of taxation system and address new challenges of the manufacturing sector.

The DIPP, under the commerce and industry ministry, is working on this proposal.

It would also be aligned with the government’s flagship programmes such as Make in India, Skill India, Startup India and the foreign direct investment policy.

The Department of Industrial Policy and Promotion (DIPP), under the commerce and industry ministry, is working on this proposal.

“The draft of the new policy should be ready by September this year,” the ministry official said.

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.

 

Industrial production growth slows to 3.1% in April

Industrial production growth slipped to 3.1% in April due to poor show by manufacturing, mining and power sectors coupled with lower offtake of capital goods and consumer durables. The slip is significant compared to the same period last year, when industrial production grew by 6.5%.

The factory output measured in terms of the index of industrial production (IIP) had grown by 2.7% in March but has been revised upwards to 3.75%, the data released by the Central Statistics Office (CSO) today showed.

According to the CSO data, manufacturing sector, which constitutes 77.63% of the index, grew at 2.6% in April compared to 5.5% in same month last year.

Similarly, mining sector output grew at 4.2% in the month under review compared to 6.7% year ago. Power generation rose by 5.4% in April, down from 14.4% expansion in April last year.

IIP

The output of capital goods, which are the barometer of investment in the country, contracted by 1.3% in April compared to growth of 8.1% a year ago.

Similarly, consumer durables or white goods production declined by 6% in April against 13.8% growth a year ago.

As per use-based classification, the growth rates in April 2017 over April 2016 are 3.4% in primary goods, 4.6% in intermediate goods and 5.8% in infrastructure/ construction goods.

The consumer non-durables have recorded a growth rate of 8.3%. Consumer goods overall grew at 5.8%.

In terms of industries, 14 out of 23 industry groups in the manufacturing sector have shown positive growth in April 2017 compared to the corresponding month of the previous year.

The industry group “manufacture of pharmaceuticals, medicinal chemical and botanical products” has shown the highest growth of 29.1% followed by 17.9% in “manufacture of tobacco products” and 9.5% in “manufacture of machinery and equipment”.

On the other hand, the industry group “manufacture of beverages” has shown the highest negative growth of (-) 19.2% followed by (-) 15.6% in “manufacture of motor vehicles, trailers and semi-trailers” and (-) 14.4% in “manufacture of electrical equipment”.