The much-anticipated New Industrial Policy, which will replace the 27-year-old existing policy and pave the way for promotion of new technology and reduced regulations, has been placed before the Union Cabinet for approval.
“The New Industrial Policy is now just a Cabinet nod away. Its implementation will lead to job creation and modernisation of units, and will encourage entrepreneurs to experiment with new technology to improve efficiency,” a government official told BusinessLine.
“All ministries and departments concerned were kept in the loop throughout the drafting process. Hence, there were no major changes proposed during the inter-ministerial consultations,” the official said.
This will be the third industrial policy drafted in independent India. The first was announced in 1956, and the second, in 1991.
The draft industrial policy floated in August 2017 by the Department of Industrial Policy & Promotion aims to create jobs over the next two decades, promote foreign technology transfer and attract $100 billion FDI annually.
While the policy does not suggest direct changes in laws such as those governing labour, it is likely to propose the establishment of a body with representation from the Centre and the States to work on changes whenever required. It also suggests strengthening of municipal bodies.
To promote the use of new technology such as robotics and artificial intelligence, the policy is expected to emphasise promoting R&D and set up an institutional mechanism to encourage commercial utilisation of research done using government funds, the official said.
Commerce & Industry Minister Suresh Prabhu has said the policy would include steps to cut down unnecessary regulations.
“The New Industrial Policy will encourage the industry to work together with the government to improve productivity, R&D efforts, and efficiency,” the official said.
The policy will focus on ‘Make in India’, improving ease of doing business, aligning trade and manufacturing, improving access to credit for MSMEs, industrial infrastructure creation, skill development and promotion of technology.
The DIPP is also hopeful that the policy will act as a catalyst to help the Start-up India initiative to drive India’s economic growth.