[Revision] GS2 Economy: MAKE in India, Government Policies-Interventions for Manufacturing, Factories, Labour, Skill DevelopmentDevendra Vishwakarma
- [Block 1] Policies
- New Industrial policy 1991
- National MFG policy 2011
- National IT policy 2012
- New Telecom Policy 2012
- [Block-2] Make in India (MII)
- Why Make in India?
- MII: FIVE-mechanism
- IPR protection (GS3)
- [Block-3] Labor Factory reforms
- Why need factory/labour reforms
- Factory bill 2014
- Small factories bill 2014
- Apprentice bill 2014
- Companies Act 2013
- Companies Act: 4 statutory bodies
- [Block-4] Schemes: Skill / Social security
- Din Dayal Antyodaya
- Jivan Praman
- RSBY revamped (soon)
- Labour/Skill: Misc.Schemes
- 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
New Industrial policy 1991
- ’48: Shyama’s policy; ’56: focus on PSU; 91: Liberated
- 5 sectors need license: Tobacco, Desi liquor, Industrial explosive, Hazardous chemicals, Defense electronics.
- 3 reserved for PSU. Rail, Atomic mineral, Atomic energy.
- PSU: Disinvestment permitted, MoU for op.flexibility, later various “Ratna”
- FDI relaxed, 100% NRI investment permitted.
- Tech parks for Software, electronic, hardware
- To help M&A- MRTP removed, later CCI setup.
National MFG policy 2011
- Increase MFG’s share in GDP from present 15% to 25%. [though China 35%]
- Create 100 million jobs in a decade.
- MFG focus: employment intensive sectors- Textile, IT; MSME,
- Simplify labour and environment laws=> Modi: factory, apprentice bills + green law panel under TSR Subramanian
- Skill Development via Polytechs=> Modi skill India, Din Dayal Antyo.
- Setup Mfg promotion boards, NIMZ (invest & mfg)
- Infra via PPP=> Modi: REITS, INVITs, 3P-India for contracts
- Tax relief to startup co.s; skill Development via Polytechs.
National IT policy 2012
- 1 e-literate person in each household.=> Modi Digital India mission for rural broadband.
- 1 crore new IT personnel
- Public services/softwares in Vernacular, PH friendly, transparency=>Modi E-kranti system
- Strong framework against cybercrime
- Promote Cloud computing, open source software
- Tax relief to IT startups. (just like mfg policy)
- Target 2020: 300 billion$ revenue, 200$ exports.
- Survey Suggestion: separate Department for service sector, divest service-sector PSU, give collateral free loans to start up cos.
New Telecom Policy 2012
- 2020: rural teledensity increase to 100 =>USOF Universal service obligation fund to improve net connection in rural/naxal areas
- Right to broadband with 2mbps speed=> NFON National optical fiber network to connect 2.5 lakh Gram Panchayat.
- 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.
- All India mobile no. portability in 2015 (right now only circle wise. Total 22 circles)
- Unified license for India. (no need to buy separate for each 22 circles)
- spectrum delinked from license. Have to buy it separately.
- Allot Spectrum in transparent, market determined price. Simplify M&A in telecom industry.
- 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.
- World economic forum’s Global competitiveness index: 71.
- World bank Ease of doing business rank 142. (double of 71)
- 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.|
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