The Department of Industrial Policy and Promotion (DIPP) under the commerce and industry ministry will release a new industrial policy by October, it will focus on encouraging Indian branded products with high value addition at a global level, and will review the existing Foreign Direct Investment (FDI) policy regime to facilitate greater technology transfer. Recently on august 29th, DIPP released consolidated FDI policy.
The new policy is expected to replace the United Progressive Alliance government’s National Manufacturing Policy (NMP) 2011, which sought to create 100 million jobs by 2022.
Highlights of new industrial policy:
- DIPP has adopted an inclusive approach for formulating this policy by setting up six thematic focus groups and an online survey on the department’s website to obtain inputs. The six thematic areas are
1)Manufacturing and MSME
2) Technology and Innovation
3) Ease of Doing Business
4) Infrastructure, Investment
5) Trade and Fiscal Policy
6) Skills and Employability for the Future
- Inputs have also been obtained from a task force on artificial intelligence headed by Kamakoti, a professor in the department of computer science and engineering at the Indian Institute of Technology Madras
- The new policy will aim to attract $100 billion of FDI in a year, up from $60 billion in 2016-17, it will also aim at retaining investments and technology.
- The policy will aim to harness the advantages of existing strengths in sectors like automobiles and auto-components, electronics, new and renewable energy, banking, software and tourism, and create globally scaled-up and commercially viable sectors such as waste management, medical devices, renewable energy, green technologies, financial services to achieve competitiveness.
- The policy will also push for reforms to enhance labour market flexibility with an aim for higher job creation in the formal sector and performance linked tax incentives.
- This policy will achieve economic development and industrial growth.
- A time frame for implementation of the policy will be decided by taking into consideration the changing economic and business cycles of the world and India, geopolitical trends and broad policy directions in the country.