India’s Industrial Landscape: Policies, Practices and Progress

India’s Industrial Landscape: Policies, Practices and Progress

• Use plant and animal-based products as their raw materials.
• Examples- Food processing, vegetable oil, cotton textile, dairy products and leather industries.

Mineral based Industries

• are primary industries that use mineral ores as their raw materials.
• The products of these industries feed other industries.
• Iron made from iron ore is the product of mineral based industry. This is used as raw material for the manufacture of a number of other products, such as heavy machinery etc.

• Use products from the sea and oceans as raw materials.
• Industries processing seafood or manufacturing fish oil are some examples

• Forest based industries utilize forest produce as raw materials.
• The industries associated with forests are pulp and paper, pharmaceuticals, furniture and buildings.

• For Micro-enterprises, the investment limit will be Rs 1 crore and turnover Rs 5 crores.
• For Small enterprises, the investment limit will be Rs 10 crores and the turnover Rs 50 crores.
• For the Medium enterprise, the investment limit will be Rs 50 crores and turnover Rs 250 crores.

• Are owned and operated by individuals or a group of individuals.

• These are owned and operated by the government, such as Hindustan Aeronautics Limited.

• Owned and operated by the state and individuals or a group of individuals.
• Maruti Udyog Limited is an example of joint sector industry

• are owned and operated by the producers or suppliers of raw materials, workers or both.
• Anand Milk Union Limited and Sudha Dairy are a success stories of a co-operative venture

• Bhilai, Durgapur, Jamshedpur, Rourkela, Bokaro are spread in 4 states — West Bengal, Jharkhand, Odisha and Chhattisgarh.
• Bhadravati and Vijay Nagar in Karnataka, Visakhapatnam in Andhra Pradesh, Salem in Tamil Nadu
• Pittsburg, USA.

• Coimbatore, Kanpur, Chennai, Ahmedabad, Mumbai, Kolkata, Ludhiana, Puducherry and Panipat

• Silicon Valley, California and Bangalore, Hyderabad in India.

• Tends to locate near the iron and steel producing centres.
• Mumbai, Chennai, Jamshedpur, Jabalpur, and Kolkata

• Gujarat, Tamil Nadu, Uttar Pradesh, Maharashtra, Andhra Pradesh, Punjab, Kerala.

• Andhra Pradesh and Telangana, Rajasthan, Madhya Pradesh, Tamil Nadu, Gujarat, Maharashtra, Jharkhand, Maharashtra, Karnataka etc.

• Reducing the fiscal burden on the exchequer
• Improving public finances
• Encouraging private ownership
• Funding growth and development programmes
• Maintaining and promoting competition in the market

• Those PSEs which have made profits continuously for the last 3 years and earned net profit of rupees 30 crores are more in one of the three years.
• These miniratnas are granted certain autonomy like incurring capital expenditure without government approval up to rupees 500 crores or equal to their net worth whichever is lower.

Category II Miniratna:

• Those PSEs which have made profit for the last 3 years continuously and should have a positive net worth.
• These mini ratnas have autonomy to incurring the capital expenditure without government approval up to rupees 300 crores or upto 50% of their net worth whichever is lower.

• In the Navratna concept in 1997, it granted enhanced autonomy to nine selected PSEs referred to as “Navratnas”.
• These navratnas were subject to certain guidelines now they have freedom to Incur capital expenditure, decide upon joint ventures, set up subsidiaries/ offices abroad, enter into technological and strategic alliances.
• They can raise funds from capital markets (International and Domestic) enjoy substantial operational and managerial autonomy.
• Invest up to rupees 1000 crores or 15% of their net-worth on a single project without seeking government approval.

• The category of PSEs was created in 2011.
• To be eligible for the grant of the Maharatna status the company should have
• An average turnover of over RS 25000 crores average,
• Annual net worth of more than 15000 crores and
• Average annual net profit of over rupees 5,000 crore during the last 3 years.
• Maharatna status’s board would not be required to take the government permission for investments up to rupees 5000 crores in a joint venture project or wholly owned subsidiary.

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Vizag-Chennai Industrial Corridor (VCIC) is the first coastal economic corridor in the country.

• To increase the manufacturing sector’s growth rate to 12-14% per annum
• To create 100 million additional manufacturing jobs in the economy by 2022
• To ensure that the manufacturing sector’s contribution to GDP is increased to 25% by 2022 (revised to 2025) from the current 15-16%.

• FDI has increased from $16 billion in 2013-14 to $36 billion in 2015-16 but it has not increased further.
• FDIs in the manufacturing sector are becoming weaker than before. It has come down to $7 billion in 2017-18 as compared to $9.6 billion in 2014-15.
• FDIs in the service sector is $23.5 billion, more than three times that of the manufacturing sector
• India’s share in the global exports of manufactured products remains around 2% which is far less than 18% share of China.

• eator an exclusive right over the use of his/her creation for a certain period of time.

• Article 27 of the Universal Declaration of Human Rights

• Paris Convention for the Protection of Industrial Property (1883)
• Berne Convention for the Protection of Literary and Artistic Works (1886). Both treaties are administered by the World Intellectual Property Organization (WIPO)

• Copyright and rights related to copyright– The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author.
• Industrial property– Trademarks and Geographical Indications. Industrial designs and trade secrets.

• India is a member of the WTO and committed to the Agreement on Trade Related Aspects of Intellectual Property (TRIPS Agreement).
• India is also a member of WIPO, a body responsible for the promotion of the protection of intellectual property rights throughout the world.

• Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce, – the nodal department to coordinate, guide and oversee the implementation of IPRs in India.
• ‘Cell for IPR Promotion & Management (CIPAM)’, setup under DIPP, for implementation of the National IPR Policy.

• COMPULSORY LICENSING– When a government allows someone else to produce a patented product or process without the consent of the patent owner or plans to use the patent-protected invention itself.
• EVERGREENING OF PATENTS– When producers extend the lifetime of their patents in order to retain royalties from them, by either taking out new patents or by buying out, or frustrating competitors, for longer periods of time than would normally be permissible under the law

• The Union Education Ministry has launched ‘KAPILA’ (Kalam Program for IP Literacy and Awareness).

• India is at the 48th position in 2020. And was in 52nd position in 2019.

• Nice Agreement-International classification of Goods and Services for the purposes of registration of marks
• Vienna Agreement
• Locarno Agreement-establishing an International classification for industrial designs.

• India has slipped to 40th position in 2020 from the 36th position in 2019.

• India was at 63rd position (2019) out of 190 countries
• It improved 14 places from its 77th position in 2018.
• India continues to maintain its first position among South Asian countries.

10 parameters considered-

1. Starting a Business,

2. Dealing with Construction permits,

3. Electricity availability,

4. Property registration,

5. Credit availability,

6. Protecting minority Investors,

7. Paying Taxes,

8. Trading across borders,

9. Contracts enforcement, and

10. Resolving Insolvency.

• It ranks countries on the basis of Distance to Frontier (DTF) score that highlights the gap of an economy with respect to the global best practice.

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• Published every two years,
• India ranks 10th in the number of patents given according to 2018 report.

• Economic freedom is measured broadly on 4 pillars-
• Rule of Law,
• Government- fiscal health, tax burden
• Regulatory efficiency, and
• Open Markets

• It measures the factors and policies that make a country a viable place to invest within the Travel and Tourism sector.
• India has secured 34th place in the Index.