Under the Commerce and Industry Ministry, the Department of Industrial Policy and Promotion (DIPP) is likely to release a new industrial policy by October which will focus on encouraging Indian branded products with higher value addition.
The proposed policy will also review the existing foreign direct investment (FDI) policy regime to facilitate greater technology transfer. The policy is expected to replace the United Progressive Alliance government’s National Manufacturing Policy (NMP) released in 2011, which sought to create 100 million jobs by 2022.
“It is time to shift from a policy of ‘continuity with change’ in 1991 to radical and accelerated reforms for greater strategic engagement with the world. A comprehensive, actionable, outcome-oriented industrial policy will enable industry to deliver a larger role in the economy; to fulfil its role as the engine of growth and to shoulder the responsibility of adding more value and jobs,” noted a discussion paper released by DIPP.
The policy will aim to set a clear vision for the role of industry and industrial growth in the growth and development of the economy. The policy aims to attract USD 100 billion of FDI in a year, up from USD 60 billion in 2016-17, it will also aim at retaining investments and accessing technology, added the paper. The policy will also introduce reforms to enhance labour market flexibility with an aim for higher job creation in the formal sector and performance linked tax incentives.