Initial draft industrial policy targets $1 trillion gross value addition in manufacturing by 2025

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News:The Department for Promotion of Industry and Internal Trade(DPIIT) has released the initial draft industrial policy.

Facts:

Background:

  • This will be the third industrial policy after the first in 1956 and the second in 1991.
  • The new industrial policy will replace the industrial policy of 1991 which was prepared in the backdrop of the balance of payment crisis. 
  • The policy was prepared with an aim to (a)create jobs for the next two decades (b)promote foreign technology transfer and (c)attract $100 billion foreign investment annually.

Key features of the draft policy:

  • The policy targets $1 trillion gross value addition in the manufacturing sector by 2025.
  • The policy envisages setting up business enterprises which are globally competitive and can create gainful employment and sustainable livelihoods.
  • It also involves creating industry that is equipped with innovation, technology, financially viable and environment friendly and whose benefits are shared by all sections of the society.
  • The policy has also proposed a detailed implementation mechanism of the policy under which it has suggested setting up of a national industrial competitiveness council and a steering committee.
  • The policy would also work in tandem with the Skill India Mission to improve the employability of future workforce and with the foreign trade policy to enhance India’s share in global merchandise exports.
  • It would also enable harmonious implementation of macro fiscal and monetary policies and ensure that incentive regime for industry is competitive.
  • Further, it will work to revive investments into industry and manufacturing with a balanced focus on both quantity and quality of investments.