- Industry refers to an economic activity that is concerned with production of goods, extraction of minerals or the provision of services. E.g.-Iron and Steel industry (production of goods), Coal mining industry (extraction of coal) and tourism industry (service provider) etc.
- CLASSIFICATION OF INDUSTRIES: Industries can be classified on the basis of raw materials, size and ownership.
|BASED ON RAW MATERIALS:|
|Agro based Industries|
Mineral based Industries
|Marine based Industries|
|Forest based Industries|
|BASED ON SIZE:|
- It refers to the amount of capital invested, number of people employed and the volume of production.
Small scale Industries
|Small scale industries use lesser amount of capital and technology as compared to large scale industries that produce large volumes of products. E.g. – cottage and household industries. It comprises of Micro, Small and Medium enterprises:|
Ø For Micro-enterprises, the investment limit will be Rs 1 crore and turnover Rs 5 crores.
Ø For Small enterprises, the investment limit will be Rs 10 crores and the turnover Rs 50 crores.
Ø For the Medium enterprise, investment limit will be Rs 50 crores and turnover Rs 250 crores.
|Large scale industries||Investment of capital is higher and the technology used is superior in large scale industries e.g. – automobiles and heavy machinery industries.|
|BASED ON OWNERSHIP:|
|Private sector industries|
|Public sector industries|
|Joint sector industries|
|Co-operative sector industries|
Factors Affecting Location of Industries: Raw material, Capital, Energy, Labour, Market, Water, Communication, Transport, Land, Power etc.
|IMPORTANT INDUSTRIAL LOCATIONS|
Iron And Steel Industry
|Cotton Textile Industry|
|1948||First Industrial policy of India|
|1956||Industrial policy resolution. Focus was on Public sector led heavy industries|
|1991||LPG reforms and New Industrial policy under the backdrop of Balance of Payment Crisis.|
|INDUSTRIAL POLICY RESOLUTION OF 1948:|
- Role of the State in industrial development both as an entrepreneur and authority.
- India’s model- Mixed Economic Model.
- It classified industries into four broad areas:
- Strategic Industries (Public Sector): Central Government had monopoly-Arms and ammunition, Atomic energy and Rail transport.
- Basic/Key Industries (Public-cum-Private Sector): like coal, iron & steel, aircraft manufacturing, ship-building. To be set-up by the Central Government.
- Important Industries (Controlled Private Sector): continue under private sector however, the central government, in consultation with the state government, had general control over them.
- Other Industries (Private and Cooperative Sector): All other industries which were not included in the above mentioned three categories were left open for the private sector.
The Industries (Development and Regulation) Act was passed in 1951 to implement the Industrial Policy Resolution, 1948.
|NEW INDUSTRIAL POLICY (Economic Reforms) 1991:|
- De-reservation of Public sector- Presently, only two sectors- Atomic Energy and Railway operations- are reserved exclusively for the public sector.
- De-licensing-Abolition of Industrial Licensing except for Electronic aerospace and defence equipment, Specified hazardous chemicals, Industrial explosives, Cigars and cigarettes of tobacco and manufactured tobacco substitutes.
- Disinvestment of Public Sector– Government stakes in Public Sector Enterprises were reduced to enhance their efficiency and competitiveness.
- Liberalization of Foreign Investment
|DISINVESTMENT AND ITS TYPES:|
- Disinvestment means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.
- Disinvestment in PSU’s means Government selling/ diluting its stake (share) in Public Sector Undertakings in which it has a majority holding.
- Disinvestment is carried out as a budgetary exercise, under which the government announces yearly targets for disinvestment for selected PSUs.
Main Objectives Of Disinvestment In India:
The Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance has been made the nodal department for the strategic stake sale in the Public Sector Undertakings (PSUs).
Types of Disinvestment:
|Token Disinvestment: Selling minority shares of Public Enterprises, to another entity be it public or private is disinvestment. In this the government retains ownership of the enterprise.|
|Strategic Disinvestment: When the government sells majority shares in an enterprise, that is strategic disinvestment/sale. Here, the government gives up the ownership of the entity as well.|
|TYPES OF PSEs:|
|Category I Miniratna:|
Category II Miniratna:
- CIRCULAR ECONOMY: Resources are kept in use for as long as possible, the maximum value is extracted from them, and ultimately waste is recovered and regenerated in the end.
- India is already on its path to the circular economy; Initiatives of the National Productivity Council (NPC) and government show that. NPC is an autonomous organisation under the Ministry of Commerce and Industry.
- Key Initiatives: Productivity Week 2019’s theme was ‘Circular Economy for Productivity and Sustainability’. Digital India contains a significant component of the recycling of electronic wastes. Swachh Bharat Mission is also about making wealth out of wastes.
- LINEAR ECONOMY:
|NIMZ- NATIONAL INVESTMENT & MANUFACTURING ZONES:|
- They are one of the important instruments of National Manufacturing Policy, 2011.
- NIMZs are envisaged as large areas of developed land with the requisite eco-system for promoting world class manufacturing activity.
- NIMZs are different from SEZs in terms of size, level of infrastructure planning, governance structures related to regulatory procedures, and exit policies.
|DIFFERENCE BETWEEN NIMZ AND SEZ:|
|Under||National Manufacturing Policy, 2011.||SEZ Act, 2005|
|Minimum Area||5000 hectare||10-1000 hectare|
|Maximum Area||Not specific||5000 hectare|
|Environmental Impact Assessment||State Government||Project Developer|
What Are They?
|They will be self-sustained townships encompassing all support systems like schools, electricity etc.||They are” Deemed Foreign Territories” and are exclusively for export oriented industries.|
- It is a package of infrastructure comprising of multi-modal transport services with the intent to stimulate industrial development that would pass through the states.
- Projects will be implemented through National Industrial Corridor Development and Implementation Trust (NICDIT)- an apex body under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
- Manufacturing is a key economic driver in these projects.
- There are 5 Industrial Corridors-
|INDUSTRIAL CORRIDORS||COVERS||ASSISTANCE OF|
|Delhi-Mumbai Industrial Corridor (DMIC)||Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.||Japan|
|Chennai-Bengaluru Industrial Corridor (CBIC)||Tamil Nadu, Andhra Pradesh and Karnataka.||Japan|
|Bengaluru-Mumbai Economic Corridor (BMEC)||Maharashtra and Karnataka.|
|Amritsar-Kolkata Industrial Corridor (AKIC)||Punjab, Haryana, Uttarakhand, Uttar Pradesh, Bihar, Jharkhand and West Bengal.|
|East Coast Economic Corridor (ECEC)||West Bengal, Odisha, Andhra Pradesh and Tamil Nadu.|
Vizag-Chennai Industrial Corridor (VCIC) is the first coastal economic corridor in the country.
|Asian Development Bank (ADB)|
|MAKE IN INDIA (2014):|
- To encourage manufacturing in India and galvanize the economy with dedicated investments in manufacturing and services.
MSME (Micro, Small, and Medium Enterprises):
- In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions:
- Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry
- Service enterprises – engaged in providing or rendering services
Manufacturing Enterprises and Enterprises rendering Services are classified as following:
|Micro enterprises||Investments not exceeding Rs one crore and turnover of Rs 5 crore.|
|Small enterprises||investment up to Rs 10 crore and turnover of up to Rs 50 crore.|
|Medium enterprises||investments not exceeding Rs 50 crore and turnover of Rs 250 crore.|
- MSME ministry has set a target to up its contribution to GDP to 50% by 2025 as India becomes a $5 trillion economy.
- A person willing to establish as micro, medium or small enterprise shall file registration at the Udyam registration portal. The registration is based on self-declaration. Upon registration, the enterprise is provided with a unique number called the “Udyam Registration Number” (URN).
- Udyam Sakhi portal was launched for women entrepreneurs separately.
|INTELLECTUAL PROPERTY RIGHTS (IPR)|
DIVIDED INTO 2:
INDIA AND IPR
|NATIONAL IPR POLICY, 2016|
|GLOBAL INNOVATION INDEX by WIPO|
4TH INDUSTRIAL REVOLUTION-It includes emerging technologies like robotics, artificial intelligence, quantum computing, biotechnology, Internet of Things (IoT), 3D printing, etc. It merges physical, digital and biological spheres.
|PATENT PROSECUTION HIGHWAY (PPH) PROGRAMME|
- PPH is a set of initiatives for providing accelerated patent prosecution procedures by sharing information between some patent offices. Example- between Japan Patent Office (JPO) and Indian Patent Office
- This would allow a patent applicant to demand fast-tracking of his patent application by showing that his product or process has already been granted a patent in Japan.
|REPORT||GIVEN BY||INDIA’S POSITION|
|Global Intellectual Property Index 2020||Global Innovation Policy Center or GIPC of the US Chambers of Commerce.|
Ease of Doing Business, 2020
10 parameters considered-
1. Starting a Business,
2. Dealing with Construction permits,
3. Electricity availability,
4. Property registration,
5. Credit availability,
6. Protecting minority Investors,
7. Paying Taxes,
8. Trading across borders,
9. Contracts enforcement, and
10. Resolving Insolvency.
|Industrial Development Report||United Nation’s Industrial Development Organization (UNIDO)|| |
|World Intellectual Property Report||World Intellectual Property Organisation (WIPO)|
Index of Economic Freedom
|Heritage Foundation& Wall Street Journal|
|Travel and Tourism Competitiveness Index||World Economic Forum (WEF).|