Policy Industrial Sector: Economic YouTube Lecture Handouts

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Make in India

  • Aim is to promote India as an important investment destination and a global hub in manufacturing, design and innovation.
  • Government will develop industrial corridors and smart cities, world class infrastructure with state-of-the-art technology and high-speed communication facilities.
  • Single window clearance, ease in registration, land acquisition.
  • To increase the share of manufacturing sector in the country՚s GDP to 25 % by 2022.
  • To create 100 million additional jobs by 2022.
  • To promote export-led growth, as this will lead to fall in deficit.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

  • Under the scheme, financial incentive of 25 % of capital expenditure on plant, machinery, equipment, associated utilities is provided to the industrial units making investment for manufacturing of capital goods, electronic components, and semiconductors.
  • It will lead to fall in imports and will cater needs of Industries like Mobile, Consumer electronics, Industrial Electronics, Automotive, Medical Electronics etc.

Samarth Udyog Bharat

  • It will help Indian manufacturing sector to adopt and assimilate Industry 4.0 technology such as Data Analytics, 3D Printing, AI, ML etc.
  • To make adequate provisions for e-waste management, Hand-holding of SMEs to plan and to implement relevant Industry 4.0 projects to be done through consultancy services on chargeable basis
  • Collaborating with neighborhood Universities for student training/internship programmes.
  • Further, it will enhance Competitiveness in Indian Capital Goods Sector. It is an initiative of Ministry of Heavy industries.
  • The issue of technological gap and product quality will be resolved.

Scheme for Electronic Manufacturing

  • Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing
    • The scheme provides financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain including electronic components and semiconductor packaging.
    • Domestic value addition for mobile phones is expected to rise to 35 - 40 % by 2025, to generate additional 8 lakh jobs, both direct and indirect.
  • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
  • Modified Electronics Manufacturing Clusters Scheme:
  • It will provide financial assistance up to 50 % of the project cost subject to a ceiling of ₹ 70 crore per 100 acres of land for setting up of Electronics Manufacturing Cluster projects

Initiatives for MSME Sector

  • The Launch of the 59 minute loan portal to enable easy access to credit for MSMEs. Thus, reliance on informal sources will decline.
  • Government has also decided to provide 2 percent interest subvention for all GST registered MSMEs, on fresh or incremental loans.
  • E-commerce portal will be launched so that products can be sold online.
  • It has been made mandatory for the Public sector companies to procure 25 % , instead of 20 % of their total purchases, from MSMEs.

Practice Question

Q 1 Consider the following statements about SAMARTH Udyog Bharat 4.0:

1. SAMARTH Udyog Bharat 4.0 is under Ministry of Micro, Small and Medium Enterprises. 2. To facilitate and create eco system for propagation of Industry 4.0 set of technologies in every Indian manufacturing by 2025, be it MNC, large, medium or small scale Indian company.

Which of the above statements is/are correct?

A) 2 only

B) 1 Only

C) Both 1 and 2

D) Neither 1 nor 2

Answer: A