Changes in Industrial policy & effect on industrial growth

Industrial policy

40 % total export , 11 crore jobs
Expert committee on MSME- UK Sinha - RBI
Review legislative framework - MSMED Act ,, 2006 - MSME code with sunset provisions
Change msme definition from investment based to turnover based, transparent , progressive, easier to implement
Strengthen procurement sys - GeM , payment
KVIC corporatized with focus on promotional work
Exit policy for msme - out of court assistance to msme , mediation , finance edu
N council for MSME under pm
Improve performance of cluster - synergy
Market asses & asses to tech
Sidbi priority sector shortfall fund to fund state govt as soft loan to develop infra & cluster , utilize micro credit
Issues

MSME outreach programme (100 district)
Credit & financial assitance to MSMe -
59 min upto 1cr loan portal through GST portal
2 % interest subvention gst registered MSME
TReDS - cash cyle maintenance, PmMUDRA tarun loan
Credit linked capital subsidy scheme - tech upgradation
Credit guarantee for MSME loan - collateral free
Skill development & training - ASPIRE - incubation & commercialization of Business idea, PMEGP- s employment, micro industry, PMKVY, SIM
Infra- scheme for cluster development , scheme for regeneration of tradition industry - SFURTI
Marketing assistance - MSME - SAMADHAN(delayed payment), Sambhandham - public procurement portal , GeM, 25% mandatory procurement for CPSE,women MSME 3% out of 25%
Tech upgradtion - Fianace support for 0 effect ,0 defect certificate
EODB - no inspector raj - computerized sys, 1 annual return - under labour law, support to pharma cluster m relaxation in environ clearances - self certificate

1. Unutilized land (25,k hectare)
2. Multiple model - sez , costal economic zone ? , DMIC, NIMZ , FOOD park , textile park
3. Underutilized existing capacity
4. Domestic sale face disadvantage - pay custom duty as compared to lower rates to ASEAN
5. Imposition of MAT from 2012 & IT in new SEZ
6. Requirement to pay in forex for service provided to dta
7. Lack of support from state govt

1. flexibility of land use , remove sector specific constraint
2. Rationalize model , DPIIT +NITI - develop master plan for industrial cluster
3. Allowing job work to Domestic tariff area currently treated as export & import
4. Best FTA rates should be allowed for domestic sales
5. Restoration of IT benefit & exception from MAT align GST with sez rule
6. Amend definition of service in sez act, 2005
7. developing effective single window sys for clearance

Higher depreciation on car brought from now till 2020, deferring increased registration fee

- Replace mineral policy , 2008 in compliance with sc direction in common cause vs UOI case
- Dr Rajeshwara rao comm review

• Pros - business friendly , ramp up production , exploration , aim to boost mineral production by 200% in next 7 year, SD
• Cons - x talk abt entire value chain of new age mineral & acquire IPR on extraction & downstream

Need - evolving nature of electronic industry, India, NPE,2012 consolidated foundation of ESDM value chain NPE, 19 build of foundation
Spill over effect on electronic industry , security concern , rising Inverted duty structure , dependence on major power, job creation
Opportunities- DD, Data , DI, AIM, startup india
Mission - global leader - esdm , domestic manu, skill development, start up , export ecosys, EoDB, $400 bn turnover & 1 bn job

Strategies - tax incentives for domestic manu , Electronic manufacturing cluster, defence offset , semi conductor facilities , display fabrication unit , EoDB- single window mech - Invest Ind, N investment Promotion , Industry led r & D, innovation - 5g, iot, ai , edu , incubation , sovereign patent fund, promote trusted eco vlue chain , N cyber security profile , n defense critical Infra, developing core competencies in sub sector - electric vehicle , chip design , medical
• Lithium ions cell chip component, fuel cellm optical fibre, solar cells, preferential market access , GeM ,public procurement, HRD, export promotion , eco -park for e waste , min of rare earth mineral in australia, africaa , index of electronic manufactoring in states

• NPE 2012- modified special incetive package scheme (M-SIPS) - subsidies for electronic secto , EMC, Electroninc development fund - fund of funds for venture fund
• IR 4.0 wef center in india

- 65 lakh by 2025
- NASSCOM strategic review 17 - global software product industries - 430 bn $ , inida IT- ITES - 7bn
- 10 bn import of software & 2.3 export
- Growth decline - rapid transformation in tech & software
- 1st sp , 1986 , maturing industry - need new policy

Shruti