Indian Industrial Policies

·        Industrial Policies were Launched in 1948.1956, 1997, 1980 and 1991.

·        Industrial Policy 1956 is called ‘Economic Constitution of India’ and gave public sector the strategic edge.

·        Industrial Policy 1991 opened up the economy.

·        The Main aims were: (a) to end license-permitraj; (b) to integrate Indian economy with the outer world: (c)to remove restrictions on FDI and (d) to Reform public sectors.

Public Sector Enterprises (PSEs)

·        Industries requiring compulsory licensing (a) distillation and brewing of alcoholic drinks; (b) cigar and cigarettes of totacco; (c) electronic aerospace and defence equipment; (d) industrial explosives; (e) specific hazardous chemicals;

·        Areas reserved for public sector are (a) atomic energy – production, separation and enrichment of fissionable materials; and (b) railways.

·        Present policy on PSEs is to (a) not to privatize profit-making companies and to modernize and revice sick companies; (b) not to bring government stake in PSEs below 51%;(c) to adopt intial public offering route to disinvestment.

·        There are 249 Central PSEs as on 31^st March 2010.

Navratnas and Maharatnas

·        The Concept of Navratnas was started in 1997. At present there are 14 Navratnas and 65 Miniratnas.

·        Navratnas Bharat  Electronics Ltd, BPCL,HAL,HPCL,MTNL,NALCO,National  Mineral Development Corporation, Nevyeli Lignite Company Ltd, Oil India Ltd, Power Finace Company Ltd, Power Frid Corporation of India Ltd, Power Grid Corporation of India Ltd, Rashtriya Ispat Nigam Ltd, Rural Electrification Corporation Ltd and Shipping Corporation of India Ltd.

·        Maharatnas were started in 2009, Seven Maharatnas  are ONGC,Sail,IOC,NTPC and Coal India Ltd, BHEL and GAIL (India) Ltd.

Committees

·        Hazari Committee on Industrial Policy.

·        Subimal Dutt Committee on Industrial licensing.

·        Abid Hussain Committee on Small Scale Industry.

·        C Rangarajan  Committee on disinvestment.

·        Memoradum of Understandings (MoU) Arjun Sengupta.

Small Scale Industry

·        A new thurst to small scale industry.given in Industrail Policy of 1977.

·        MSMED Act,2006 and new definition,.

·        Contributes 8% to GDP, 45% to all manufactures and 40% to exports.

·        According to the 4^th Census (2009) of SSIs, 67% of the MSME are in manufacturing and 33% are in services sector.

Major Industries in India Iron and Steel

·        First Steel Industry at Kulti, Paschim Bengal-Bengal Iron Works Company was established in 1870.

·        First large scale steel plant – TISCO at Jamshedpur (1907) was followed by IISCO at Burnpur (1919), Paschimbanga.

·        The first public sector unit was Visvesvaraya iron and steel works at Bhadrawati.

·        Presently India is the 4^th largest  producer of steel and comes 1^st in the production of sponge iron.

Manufacture       Investment Limit                ServiceUnit                    Investment Unit

Micro                     upto Rs 25 lakhs                             Micro                           upto

Small                      Rs 25 lakhs Rs 5 crore                   Small                            Rs10 lakhs Rs 2 crore

Medium                  Rs 5 crore Rs 10 crore                   Mediu m                       Rs 2 crore Rs 5 crore

Location                                                                      Assistance

Rourkela (Odisha)                                                     Gemany

Bhilai (Mp)                                                                Russia

Durgapur (Paschim Bangal)                         Britain

Bokaro (Jharkhand)                                                   Russia

Vishakhapatnam (AP)                                                Russia

Jute Industry

·        First modernized industrial unit was established at Rishra in Paschimbanga in 1855.

·        India ranks No. 1 in jute production and No 2 in raw jute exports after Bangladesh.

·        More than 2/3 rd jute industry is concentrated in Paschimbanga.

Cottan and Textile Industry

·        Largestorganized and broad-based industry accounting for 4% of GDP, 20% of manufacture value added and one third of total exports earning.

·        The first Indian modernized cotton cloth mill was established in 1818  at fort Golster (Calcutta). The second mill named Bombay Spinning and Weaving Company, established in 1854 at Bombay by KGN Daber.

·        The Multi-Fibre Agreement (MFA) under World Trade Organisation ended on 31^st December, 2004, inally integrating textile sector into WTO rules.

Cement Industryf

·        First Cement producing unit was set up at paschimbanga, Porbandar (Gujarat), in 1914.

·        India is the second largest producer of cement in the world.

Fertilizer Industry

·        First fertilizer industry at Ranipet (Chennai) in 1906.

·        India meets its 85% requirement of urea indigenously.

·        India is the third Largest producer of fertilizers in the world after china and USA, NPK consumption ratio in 2008-09  was 4.6 : 2: 1.

Sugar Industry

·        India is the second Largest producer of sugar in the world with a 22% share.

·        It is the second largest agro-based industry in the country.

BB mahajan Committee  is related to sugar industry. Sugar Development fund was set up in 1982

Indian Employment report

A person, working 8 hours a day for 273 days of the year is regarded as employed as the main worker.

Programme/Measure                                                               Year of Launch

Employment Guarantee Scheme                                                1972-73

Drought Prone Area Programme                                               1973-74

Twenty point Programme                                                           1975

Desert Development Programme                                              1977-78

Integrated Rural Development Programme                              1980

National Rural Employment Programme                                  1980

Jawahar Rozgar Yojana                                                               1989

Nehru Rozgar Yojana                                                                  1989

MPLAD Programme                                                                   1993

Rural Landliess Employment Guarantee Programme  1993

Swarna Jayanti Shahri Rozgar Yojana                                        1997

Swarna Jayanti Gram Swarozgar Yojana                                    1999

Pradhanmantri Gramodaya Yojana                                             2000

Pradhan Mantri Gram Sadak Yojana                                          2000

Sampoorna Grameen  Rozgar Yojana                                        2001

Bharat Nirman                                                                             2005

Jawaaharlala Nehru National Urban Renewal Mission            2005

Mahatma Gandhi National Rural Employment Programme    2009

Prime Minister Employment Generation Programme            2008

Affordable Housing in Partnership                                            2009

Rajeev Awass Yojana                                                                  2010

Estimates/ Causes

Since 1973 on the recommendation of  B Bhagwati Committee, three estimates of unemployment have been brought about by Planning Commission.

(1)      Usual Principal Status (Also called Open Unemployment) According to the NSSO, 66^th Round (2009-10) rural and urban unemployment were 2% and 4% respectively.

(2)      Current Weekly Status  On this basis the unemployment in 2009-10 in rural and urban areas were 3 % and 4% respectively.

(3)      Current Daily Status The most Comprehensve measure on this basis the unemployment for rural and urban areas were 7% and 6% respectively (2009-10).

Women Empowerment and Child Development

Programme/Measure                                                                           Year

ICDS                                                                                                         1975

Mid-Day meal Scheme                                                                           1995

Swadhar                                                                                                    1995

Swayam Sidha                                                                                          2001

SSA                                                                                                           2001

Support ot Training and Employment

Programme for Women (STEP)                                                            2003-04

Ujjwala                                                                                                     2007

Dhanlaxmi                                                                                                2008

Gender Budgeting                                                                                   2009

Integrated Child Protection Scheme                                                     2009-10

Sabla Scheme                                                                                           2010

National Mission for Empowerment of Women                                 2010

Bal Bandu Scheme                                                                                  2011

Environment

Estimates/Causes

·        India with an EPI of 48.3% is ranked 125^th in terms of tackling pollution and natural resources management (Environmental Performance Index 2012 prepared by Yale and Columbia University).

·        Per capital emission of CO is 1.2 tonnes and is the lowest in the world.

·        Per Capital water availability in India to decline from 1730 to 1240 by the year 2030 – ‘A Situation of water stress’.

·        India’s forest covers in 2009 was 23.81% of the total geographical area.

·        India contributes 4% to the total global emission of co (2005) though in absolute terms, it is one of the top five global CO emitters.

Programme/Measures

·        Notification of the wetlands (Conservation and management) rules 2010 to ensure no further degradation takes place.

·        National Green Tribunal Act mandates setting up the National Environment Appellatge Authority.

·        Increasing energy efficiency by 20% by 2016-17 (11^th Plan).

·        Reducing emission intensity of the GDP by 20-25% of the 2005 livel by 2020.

·        National Solar Mission to set up 20000 MW Solar power generation capacity by 2022.

·        National Action Policy on Climate Change (NAPCC) 2008 includes missions related to solar energy, enhanced energy efficieny, sustainable agriculture, sustainable habitat, water, Himalayan eco-system, increasing the forest cover and strategic knowledge for climatic change.

Human Development Index (HDI)

 HDI measure was given by Pakistani Nobel prize Winner Economist, Mehbub-ul-Haq.

Estimates/Causes

·        Measured by Human Development Index (HDI), published by UNDP since 1990.

·        Three dimensions

(1)   1 Life expectancy at birth rate;

(2)   2 Education index comprising means year of schooling and expected year of schooling;

(3)   3 GNI per capita (PPPUS $) Index.

Programmes/Measures

·  NRHM (National Rural health Mission) was Launched on 2^nd April, 2005 to reduce IMR and MMR.

·  Education programmes like Sarva Shiksha Abhiyan, Mid-Day Meal Scheme, Etc.

·  Rural development programmes like MGNREGA AND BHARAT NIRMAN.

Inequality

Programmes/Measures

·        Adoption of progressive taxation in India.

·        Anti-Poverty and employment generation programmes.

·        Land reforms like abolition of intermediation, land ceiling acts, tenancy reforms and co-operative movement were launched.

·        Rural development programmes.

·        Backward region grant fund.

Poverty

Estimates/Causes

·        Main Reasons for Rural Poverty Rapid population growth, lack of capital, lack of alternate employment other than agriculture, illiteracy and lack of proper implementation of PDS.

·        Main Reasons for Urban poverty  Migration from rural areas, lack of skilled labour, lack of housing facilities, limited job opportunities in cities.

·        Based on 2400 calories (rural) and 2100 calories (urban) and monthly per capita consumption expenditure of Rs 356 (rural) and 538 (urban), Planning Commission estimated poverty ratio in India in 2004-05 was 27.5%.

·        The Poverty ration or the number of poor as a percentage of total population in India for 2004-05 estimated at 37.2% according to the Suresh Tendulkar Committee.

Indian Tax Structure

Direct Tax The term direct tax generally means a tax paid directly to the government by the persons on whom it is imposed.

Indirect Tax  An indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax.

The Government of India earns maximum form Corporate Income Tax.

Direct Tax                                                                 Indirect Tax

Income Tax                                                                Sales Tax or VAT

Corporation Tax                                                        Customer Duty

Capital Gain Tax                                                        Insurance Premium Tax

Stamp Duty                                                                Excise Duties

Land Tax

Estate Duty                                                                Landfill Tax

Wealth Tax                                                                 Aggregates Levy

Petroleum                                                                  Climate Change Levy

Revenue Tax

Inheritance Tax                                                          Goods and Services Tax