Industrial Revolution

First industrial revolution was triggered by water and steam power to move from human labour to mechanical manufacturing.
Second industrial revolution built on electric power to create mass production.
Third used electronic and information technology to automate manufacturing.
Fourth is the current trend of automation and data exchange in manufacturing technologies.

It was coined by Klaus Schwab in 2016
It fuses physical, digital and biological spheres, and is transforming global production systems
Connected world, Internet of Things and Artificial Intelligence

8 core industries

Coal
Crude Oil
Natural Gas
Refinery products

Fertilizers

Steel
Cement
Electricity

The Eight Core Industries comprise nearly 40% of the weight of items included in the Index of Industrial Production (IIP).

	Weight in IIP
Refinery products	28.04
Electricity	19.85
Steel	17.92
Coal	10.33
Crude Oil	8.98
Natural Gas	6.88
Cement	5.37
Fertilizers	2.63

Refinery Products have highest weightage in IIP while Fertilizers have lowest weightage

Current 5 industries that requires Govt license

Alcohol
Tobacco, Cigarette and related products
Industrial explosives, gun powder and detonating fuse
Hazardous chemicals - Hydro Cyanic Acid, Phosgene, Carbon's Isocyanates

Hydro Cyanic Acid = Prussic Acid = Dyes, Explosives, Pesticides
Phosgene- Plastic and pesticides
Carbon Isocyanates - Fertilizers, Pesticides Ex: Methyl Isocyanate - Bhopal Gas tragedy

Aerospace and defence related electronics

Note: Large industries that produce SSI Small Scale Industries reserved products(removed now)

Current Govt reserved subjects

Atomic Energy, Nuclear Energy and research, Atomic minerals
Railway Transport

Note: Defence Industries are not reserved Industries

Current Industrial Institutions in India

CCI Act 2002 Competition Commission of India	Replaced the former MRTP Act Monopoly and Restrictive Trade policy To check monopolies and fair competition, illegal mergers and overtakes
FEMA Foreign Exchange Management Act
DIPP Department of Industrial Policy and Promotion 1995 Ministry of Commerce and Industry	SIA Secretarial of Industrial Assistance for 5 licensed industries and IEM Industrial Entrepreneur Memorandum for filing other industries
National Investment Fund 2003	Proceeds of disinvestment of PSU's goes to NIF but not as Capital Receipts of Union Govt 75% of the income of the NIF is used in social sector schemes while 25% is to be utilized in the revival of PSUs.
National Investment and Infrastructure Fund NIIF	fund created by the GOI for enhancing infrastructure financing in the country. In exceptional cases, can invest in manufacturing projects as well.
National Productivity Council	Autonomous, multipartite, non-profit organization , registered society Under Ministry of Commerce and Industry Equal representation from employers’ & workers’ organizations and Government part from technical & professional institutions and other interests. NPC teams up with its clients to work out solutions towards accelerating productivity, enhancing competitiveness, increasing profits, augmenting safety and reliability and ensuring better quality To promote the cause of productivity in all sectors of the Indian economy NPC is a constituent of the Tokyo-based Asian Productivity Organisation (APO) Appointed as one of the National Monitoring and Implementation Unit (NMIU) for the implementation of Lean Manufacturing Competitiveness Scheme under National Manufacturing Competitiveness programme
North Eastern Industrial and Promotion Policy (NEIPP)	Central Capital Investment Subsidy Scheme, 2007 Central Interest Subsidy Scheme Central Comprehensive Insurance Scheme Excise Duty exemption on value addition basis 100% Income Tax exemption for a period of 10 years

Industrial Corridors

Introduction

Industrial Corridors are stretches across the country allocated to a specific geographical area with the intent to stimulate industrial development.
They offer effective integration between industry and infrastructure, leading to overall economic and social development

Objectives

Improving Industrial infrastructure
Decentralized industrial development through cluster based approach
Industrialization and Planned urbanization and smart cities development across the corridors

Features

State of art transportation facilities

High speed rail, road network
Port with state of art cargo handling network
Modern airports

Logistics parks/trans-shipment hubs
Knowledge parks
Industrial clusters /economic regions
Urban centres

Approved corridors

Govt approved for the development of Five Industrial corridors

Industrial corridor	Funding	States/UTs
Delhi Mumbai Industrial Corridor DMIC	Japan	Haryana, UP, NCR, RJ, GJ, MH , MP
Bengaluru-Mumbai Economic Corridor	UK	Maharashtra, Karnataka
Chennai-Bengaluru-Chitradurga	Japan	TN, AP, Karnataka
Vizag-Chennai Industrial Corridor (VCIC) (Phase I of ECEC)	ADB	AP
East Coast Economic Corridor (ECEC)	ADB	WB, Odisha, AP, TN
Amritsar-Kolkata Industrial Corridor (AKIC), 2014	GOI	Punjab, HA, Uttarakhand, UP, BH, Jharkhand, WB

National Industrial Corridor Development and Implementation Trust (NICDIT)

Apex body under DIPP for coordinated and integrated development of above Industrial corridors
For coordinated and unified development of industrial corridors
NICDIT supports project development activities and appraisal, approval and sanction of projects. It also coordinates and monitors all central efforts for the development of Industrial Corridor projects
It will help in bringing in holistic planning and development approach and sharing the learning from development of industrial corridors

National Investment and Manufacturing Zones (NIMZ)

Nodal agency is Department for Promotion of Industry and Internal Trade DPIIT, Ministry of Commerce & Industry
NIMZs are integrated industrial townships conceptualized under National Manufacturing Policy 2011
Features

World-class manufacturing activities
State of the art infrastructure
Land use on the basis of zoning
Clean and energy efficient technology
Necessary social infrastructure
Skill development facilities
land for these zones will preferably be waste infertile land not suitable for cultivation,

Central govt

Provides external physical infrastructure linkages to the NIMZs including rail, road, ports, airports and telecom, in a time-bound manner
Viability gap funding wherever required.
DPIIT, Ministry of Commerce & Industry is the nodal agency

State govt

Declare NIMZ as industrial township under Article 243Q(1)(c) of the Constitution
Constitute a Special Purpose Vehicle (SPV) to discharge the functions specified in the policy.
Environmental Impact Assessment {NOTE: For SEZ, EIA is to be done by Project developer}

As of now, Government of India has granted ‘in-principle’ approval to the sixteen NIMZs

NIMZ	SEZ
Under National Manufacturing Policy, 2011	Under SEZ Act, 2005
Minimum area 5000 hectare	Min 10-1000 hectare Max 5000 hectare
Income tax exemption to MSME	IT exemption 100% for first 5 years, 50% for next five years
Environment Impact assessment by State Govt	By project developer

Industrial Policy

Imp - 1948,1956,1991

Others - 1969, 1973, 1977, 1980, 1985&86,

IPR Industrial Policy Resolution, IPS - Industrial Policy Statement

IPR 1948	India will be mixed economy Important(heavy industries) under Central list and some(medium) in State list and rest open for private
IPR 1956	Reservation of Industries - Schedule A- CPSU; Schedule B - state and private; Schedule C- private Licensing for private of Schedule B and C regulated by Industrial Development and Regulation Act Expansion of public sector, emphasis on small scale industries
IPS 1969	Misuse of licenses MRTP Act Monopolistic and Restrictive Trade Practices Act, MRTP Commission Licensing for expansion, green field projects, takeover- for companies > 25 crore
IPS 1973	Core industries-6-Coal, Crude, Refinery, steel, cement and electricity Reserved list- for small and medium industries Concept of Joint sector (central + state private) FERA- limited permission to foreign investment
IPS 1977	Anti-Indira, Decentralization- District Industrial Centers
IPR 1980	Licensing simplified, liberal attitude to private industries Foreign investment via technology transfer route was allowed again
IPR 1985&86	High level attention on sunrise industries like telecommunications, electronics, computers Modernisation and profitability of PSUs emphasised Industries based on imported raw materials boosted Some flexibility in FERA to allow critical technologies assimilated to Indian industries
New IP 1991	Industrial Policy 1991, Manufacturing Policy 1991, IT policy 2012, Telecom policy 2012, FDI Policy Dereservations, Delicensing, , Abolition of MRTP, FERA replaced by FEMA, removal of Quota production, no forceful Nationalisation of industries Now only Polluting and Non Polluting industries

National Manufacturing Policy 2011

Objective

To increase share of manufacturing sector in GDP to 25% (currently around 16%)
Additional employment of 10 crore jobs by 2022

How to achieve objectives

By establishment of National Investment and Manufacturing Zones (NIMZ) equipped with world-class infrastructure that would be autonomous and self-regulated developed in partnership with the private sector
Industrial growth in partnership with States

Central govt

will create policy enabling fr amework
Incentives for infrastructure development through PPP model

State govt encouraged to adopt the instrumentalities provided in the policy

Encourages foreign investments and technologies to augment manufacturing capabilities and technologies with in the country
Rationalization of business regulations to reduce the burden on industry arising out of procedural and regulatory formalities

The policy proposes establishment of a Technology Acquisition and Development Fund (TADF) for acquisition of appropriate technologies, creation of a patent pool, development of domestic manufacturing of equipment
Few industrial sectors given special attention

Employment intensive industries
Capital goods manufacturing industries
Industries with strategic significance - such as aerospace; shipping; IT hardware and electronics; telecommunication equipment; Defence equipment; and solar energy.
Industries where India has a competitive edge such as automobiles, pharmaceuticals, medical equipment
Small and Medium Enterprises
PSUs specially in defense and energy sectors

Make in India

Launched in 2014 to make India as a global manufacturing hub
Objective

To increase the manufacturing sector’s growth r te to 12-14% per annum
to create 10 crore additional manufacturing jobs in the economy by 2022
to ensure that the manufacturing sector’s contribution to GDP is increase to 25% by 2022 (revised to 2025) from the current 16%

Approach

Conducive environment for investments,
Develop modern and efficient infrastructure,
Open up new sectors for foreign capital.

Parameters

Investment
Output
Employment

Logo inspired from Asoka Charaka
Initiative four pillars - new processes, new infrastructure, new sectors, new mindset

For MSME

India Aspiration Fund under SIDBI for venture capital financing
SMILE loans - SIDBI Make in India Loans for Small Enterprises
Mudra Bank - Micro Units Development and Refinance Agency

Development and refinance to commercial banks/NBFC/cooperative banks for loans given to Micro units

Special zones - Overview

Agri Export Zones AEZ	Ministry of Commerce
National Investment and Manufacturing Zones (NIMZ)	DIPP, Ministry of Commerce
Special Economic Zones SEZ	Ministry of Commerce	2000
Export Oriented Units EOUs	Ministry of Commerce	1985
Coastal Economic Zones CEZ	Ministry of Shipping
Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs)	Ministry of Chemicals and Fertilizers
Mega Leather Clusters
Mega Food Parks
Electronics Manufacturing Clusters (EMC)
Harmonized list of Infrastructure sub sectors

Industrial Sector