[Revision] GS2 Economy: MAKE in India, Government Policies-Interventions for Manufacturing, Factories, Labour, Skill Development

Government Policies

[Revision] GS2 Economy: MAKE in India, Government Policies-Interventions for Manufacturing, Factories, Labour, Skill Development

  1. Prologue
  2. [Block 1] Policies
    1. New Industrial policy 1991
    2. National MFG policy 2011
    3. National IT policy 2012
    4. New Telecom Policy 2012
  3. [Block-2] Make in India (MII)
    1. Why Make in India?
    2. MII: FIVE-mechanism
    3. IPR protection (GS3)
  4. [Block-3] Labor Factory reforms
    1. Why need factory/labour reforms
    2. Factory bill 2014
    3. Small factories bill 2014
    4. Apprentice bill 2014
    5. Companies Act 2013
    6. Companies Act: 4 statutory bodies
  5. [Block-4] Schemes: Skill / Social security
    1. Din Dayal Antyodaya
    2. Jivan Praman
    3. EPFO
    4. RSBY revamped (soon)
    5. Labour/Skill: Misc.Schemes

Prologue

  • Like I said in the first revision note: 4-5 points on selected topics. Assumption: you already have read earlier articles. This is just like minute memory jogging.
  • GS2: schemes, policies, intervention = fifty dozen schemes. I’m only making note of things related to manufacturing sector.
  • Reason: MFG topic too hot given make in India. Even if directly not asked, still same bullets can be used for poverty, hunger, empowerment related questions in GS to 3 and essay as ‘fall back line’ when you can’t recall anything else.
  • Next coming revision note: GS2: IR related Economy- bodies & agreements.

[Block 1] Policies

Government Policies

fifty dozen policies but these useful to handle mfg/service sector related Qs.

New Industrial policy 1991

  1. ’48: Shyama’s policy; ’56: focus on PSU; 91: Liberated
  2. 5 sectors need license: Tobacco, Desi liquor, Industrial explosive, Hazardous chemicals, Defense electronics.
  3. 3 reserved for PSU. Rail, Atomic mineral, Atomic energy.
  4. PSU: Disinvestment permitted, MoU for op.flexibility, later various “Ratna”
  5. FDI relaxed, 100% NRI investment permitted.
  6. Tech parks for Software, electronic, hardware
  7. To help M&A- MRTP removed, later CCI setup.

National MFG policy 2011

  1. Increase MFG’s share in GDP from present 15% to 25%. [though China 35%]
  2. Create 100 million jobs in a decade.
  3. MFG focus: employment intensive sectors- Textile, IT; MSME,
  4. Simplify labour and environment laws=> Modi: factory, apprentice bills + green law panel under TSR Subramanian
  5. Skill Development via Polytechs=> Modi skill India, Din Dayal Antyo.
  6. Setup Mfg promotion boards, NIMZ (invest & mfg)
  7. Infra via PPP=> Modi: REITS, INVITs, 3P-India for contracts
  8. Tax relief to startup co.s; skill Development via Polytechs.

National IT policy 2012

  1. 1 e-literate person in each household.=> Modi Digital India mission for rural broadband.
  2. 1 crore new IT personnel
  3. Public services/softwares in Vernacular, PH friendly, transparency=>Modi E-kranti system
  4. Strong framework against cybercrime
  5. Promote Cloud computing, open source software
  6. Tax relief to IT startups. (just like mfg policy)
  7. Target 2020: 300 billion$ revenue, 200$ exports.
  8. Survey Suggestion: separate Department for service sector, divest service-sector PSU, give collateral free loans to start up cos.

New Telecom Policy 2012

  1. 2020: rural teledensity increase to 100 =>USOF Universal service obligation fund to improve net connection in rural/naxal areas
  2. Right to broadband with 2mbps speed=> NFON National optical fiber network to connect 2.5 lakh Gram Panchayat.
  3. Make Mobile a socio-economic empowerment=>UID link with SIM CARD. Future vision Apple-pay like system, swipe mobile to pay/transfer money. no more rural branches, BCA-agents.
  4. All India mobile no. portability in 2015 (right now only circle wise. Total 22 circles)
  5. Unified license for India. (no need to buy separate for each 22 circles)
  6. spectrum delinked from license. Have to buy it separately.
  7. Allot Spectrum in transparent, market determined price. Simplify M&A in telecom industry.
  8. Make India a global hub for telecom mfg., VoIP, Cloud computing. Modi=>Make in India.

[Block-2] Make in India (MII)

Why Make in India?

  • India became Agrarian to => direct service economy. Not much focus on mfg. sector.
  • Agro gives 14% to GDP, employs 49% junta= disguised unemployment.
  • While MFG gives 15% to Indian GDP and 35% to Chinese.
  • IF MFG boost=>small farmers can shift to industry. poverty removal, land consolidation, farm mechanization=high agro output.
  • 3D-Strength = democracy, demographic dividend, demand in huge quantity.

MII: challenges

  • World economic forum’s Global competitiveness index: 71.
  • World bank Ease of doing business rank 142. (double of 71)

MII: FIVE-mechanism

Make in India

  • Simplify processes: De-licensing and deregulation=> New Factories bill, eBiz poral to apply online, industrial license valid for 3 years. Special team to guide first time investor.
  • Improve infra: New Industrial corridors authority, 3P-India, smart cities-REITs-INVITs ;Modi to get funds from US, China, Japan; BRICS bank, AIIB
  • Skilling: Skill India mission, Deen Dayal Antyodaya Yojana,
  • Focus on 30 mfg. sectors: autoparts, pharma-chemicals, leather-textile, mining-construction, food-processing-hospitality etc. Here we’ve potential to become world top-10; potential manpower and demand available.
  • Open up sectors: FDI in Defense 49% and Railways 100%
  • Protect IPR (below)

IPR protection (GS3)

Focus on five angles

1.Patent innovative product / process for industrial use.=> DIPP=>Patent office.Indian patent offices to connect online with other nations under Madrid Protocol, automated applications and approvals.=>followup special 301 report revision note for GS2-IR-Economy.
2.Industrial design registration for 10 years. Renewed again for 5 years.
3.Trademarks Automated registration of trade marks. Can be renewed for infinite time.
4.GI Statutory GI registry body @Chennai. Foreign companies can register GI in India under WTO-TRIPS agreement.
5.Copyright HRD ministry

Side note: to counter us, China too launched “Made in China” scheme to give R&D, Tax sops to Mfg-Sectors: aviation, bio—medicine production, railway and ships, IT-electronics

[Block-3] Labor Factory reforms

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