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General Studies Manual for UPSC and State Public Services Examinations Indian Economy Module-2: Indian Industry,

General Studies Manual for UPSC and State Public Services Examinations

Indian Economy Module-2: Indian Industry, Manufacturing Policy, SEZ

www.gktoday.in

First Published in 2010 Last Updated: November 2013

© 2010-2013 Suresh Soni | All Rights Reserved

DD is cl a imer

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120.56.225.142

 

General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

 

CContents

Chapter 1.

Industrial Policy Types of Industries at the time of Independence Industrial Policy Resolution 1948 Industrial (Department and Regulation) Act 1951 Industrial Policy Resolution – 1956 Mahalanobis Committee Monopolies Inquiries Commission Hazari Committee Dutt Committee

 

3

3

3

3

3

5

6

6

6

The Monopolies and Restrictive Trade Practices Act 1970 New Industrial License Policy 1970 Industry Policy Statement 1973 Industrial Policy Statement 1977 Industrial Licensing Policy 1975 & further policies Liberalization and Industrial Policy Today Industrial Policy 1991 Industrial Licensing Today Index of Industrial Production

7

8

8

9

9

Chapter 2.

10

10

11

Chapter 3.

12

Index of Industrial Production (IIP) Base Year Sector wise Weightage Patten Use wise Weightage Pattern Manufacturing Subsectors Current IIP Growth

 

12

12

13

13

14

15

Current growth and employment data of Industries

 

15

Chapter 4.

Capital Goods Sector National Manufacturing Policy

16

Chapter 5.

17

Summary of the Policy How the Policy would achieve the above objectives? Which Industry verticals will be give special attention?

17

18

18

How they want to rationalize the Business Regulations? Technology Acquisition and Development Fund Skill Development:

19

19

20

National Investment and Manufacturing Zones What is major difference from SEZ? Who will own NIMZ? How NIMZ will be administered? Role of Central Government How many NIMZ will be established? Conclusion:

20

20

21

21

22

22

22

Viability Gap Funding for NIMZ

 

23

Chapter 6.

Special Economic Zones

23

Salient Features How a SEZ is created? Minimum Land Area Requirements Minimum Built-up Criteria:

 

23

24

24

25

Fiscal benefits for a SEZ in a nutshell Customs and Excise Income Tax Foreign Direct Investment (FDI)

25

25

25

26

Banking / Insurance / External Commercial Borrowings Central Sales Tax Act Service Tax Environment Companies Act

 

26

26

26

26

26

Monitoring Can SEZ units sell to other units in SEZ? Current Number of Special Economic Zones in India Statewise Distribution of SEZ in India

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120.56.225.142

27

27

27

27

 

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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
-
-
Chapter 1.
Industrial Policy
TTypes of Industries at the time of Independence
 :
-
Industrial Policy Resolution 1948
.
Industrial (Department and Regulation) Act 1951
Act or
Industrial Policy Resolution – 1956
of
-
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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

Re-

;

Schedule A

SEZ  Re-     ;  Schedule A Schedule B: Monopoly Governments 120.56.225.142

Schedule B:

Monopoly

Governments

120.56.225.142
120.56.225.142

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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

Schedule C

Outcome of the Industrial Policy Resolution

 

licensing

 

Impact of License Raj

 

MMahalanobis Committee

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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

B ent.

MMonopolies Inquiries Commission

Dasguta Commission.

I -

Hazari Committee

development

Dutt Committee

" Committee

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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
 L
 D
`
`
TThe Monopolies and Restrictive Trade Practices Act 1970
1984.
Monopolistic Trade Practice, Unfair Trade Practice and Restrictive Trade
Practice
• Any practice which indicates misuse of one’s power to abuse the
market in terms of production and sales of goods and services was
defined as Monopolistic Trade Practice.
2
• The objective of such practices is to eliminate competition, take
advantage of monopoly and charge unreasonably high prices.
This practice also deteriorates the product quality, limit technical
development, prevent competition and adopt unfair trade practices"
Monopolistic trade practice is different from unfair trade practice. Unfair trade
practice is the false representation and misleading advertisement of goods and
services. It also includes falsely representing second-hand goods as new and
misleading representation regarding usefulness, need, quality, standard, style etc
of goods and services.
Restrictive Trade Practice is when the traders, in order to maximize their profits
and to gain power in the market, often indulge in activities that tend to block the
flow of capital into production. Such traders also bring in conditions of delivery to
affect the flow of supplies leading to unjustified costs."
`
`
` `
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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
quasi-
body.
NNew Industrial License Policy 1970
`
• ` `
• Non-
`
`
licen
confined
sectors.
Industry Policy Statement 1973
1.
2. Cement,
3. Member Name: sunil kumar Member's Email address: tripathisunilkumar21@gmail.com
120.56.225.142
Coal,
4.
5.
6. Electricity
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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
Partnership
IIndustrial Policy Statement 1977
(
)
investment
500.
`
This policy is also remembered for a very important
provision. The statement stated that foreign
companies that diluted their foreign equity up to 40
per cent under Foreign Exchange Regulation Act
(FERA) 1973 were to be treated at par with the
Indian companies. The Industry Minister was George
Fernandez. Companies like Coca Cola and IBM did
Lakh
Industrial Licensing Policy 1975 & further policies
-by-
• -
The Broad-
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120.56.225.142
• `
`
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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

`

`

 

-

`

Chapter 2.

Liberalization and Industrial Policy Today

 
 

IIndustrial Policy 1991

government control.

 
Policy 1991 • government control.   • • • ` ` • except 1. 8.

`

`

except

1.

8.

120.56.225.142

2.

3.

4. Sugar.

Member Name: sunil kumar Member's Email address: tripathisunilkumar21@gmail.com

9.

5.

leather.

6. 10.

 

11.

7. -

12. -

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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

13. 17.

14.

atches.

15.

16.

18.

-

-

`

IIndustrial Licensing Today

Please note the following points:

- -

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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
L
-
of
Chapter 3.
Index of Industrial Production
Index of Industrial Production (IIP)
The IIP is released by Central Statistical Organization.
Please note that first IIP was published in 1950 by
Office of Economic Advisor, Ministry of Commerce.
So, First IIP was NOT released by CSO because CSO
did not exist at that time. The base year in the First IIP
was 1937. CSO was set up in 1951.
Base Year
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2004-

 

1993-94

Sector wise

Mining

104.7

Manufacturing

793.6

Electricity

101.7

IIP

1000.0

Change in IIP Sector Weights

General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

2004-05

Change

141.6

36.9

755.3

38.3

103.2

1.5

1000.0

2004-05 Change 141.6 36.9 755.3 38.3 103.2 1.5 1000.0 120.56.225.142

120.56.225.142

- - -

-

Sector wise Weightage Patten

-

- - - - Sector wise Weightage Patten – - - Use wise Weightage Pattern Member

-

Use wise Weightage Pattern

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Use based 1993-94 Basic Goods 355.7 Capital Goods 92.6 Intermediate Goods 265.1 Consumer Goods 286.6
Use based
1993-94
Basic Goods
355.7
Capital Goods
92.6
Intermediate Goods
265.1
Consumer Goods
286.6
~Consumer Durables
53.7
~Consumer
Non
233
Durables
IIP
1000
Source: CSO
non-
2004-05 series
1
Food Products & Beverages
2
Tobacco Products
3
Textiles
4
Wearing apparel; dressing and dyeing of fur
5
6 Wood
and
products
of
wood
&
cork
7 Paper and paper products

General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

 

2004-05

Chan

 

ge

 

456.8

101.1

88.3

4.3

156.9

108.2

298.08

11.48

84.6

30.9

213.5

19.5

1000

 
 

1993-94 series

72.

1 Food Products

90.

76

83

15.

2 Beverages, Tobacco and related Products

23.

7

82

61.

3 Cotton Textiles

55.

64

18

27.

4 Wool, silk and man made fibre textiles

22.

82

58

 

120.56.225.142

5.8

5 Jute and other veritable fibre textils

5.9

2

10.

6 products

Textile

including

wearing

25.

51

apparel

37

9.9

7 Wood and wood products (furniture &

27.

9.9 7 Wood and wood products (furniture & 27. - -series. Manufacturing Subsectors - Appendix 1:

-

-series.

Manufacturing Subsectors

-

Appendix 1: Manufacturing Subsectors (Weights in %) Member Name: sunil kumar Member's Email address:
Appendix 1: Manufacturing Subsectors (Weights in %)
Member Name: sunil kumar Member's Email address: tripathisunilkumar21@gmail.com
Luggage, handbags, saddlery, harness &
footwear; tanning and dressing of leather
products
except
furniture; articles of straw & plating materials

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8

9

1

Chemicals and chemical products

0

1

Rubber and plastics products

1

1

Other nonmetallic mineral products

2

1

Basic metals

 

3

1

4

equipment

 

1

Machinery and equipment n.e.c.

5

1

Office, accounting & computing machinery

6

1

Electrical machinery & apparatus n.e.c.

7

1

Radio,

TV

and

communication

8

apparatus

1

Medical,

precision

&

optical

9

watches and clocks

 

2

Motor vehicles, trailers & semitrailers

0

2

Other transport equipment

 

1

2

Furniture; manufacturing n.e.c.

2

Manufacturing

General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

 

9

fixtures)

 

01

10.

8

Paper,

paper

products,

printing

and

26.

78

allied industries

 

52

67.

9

Leather and leather and fur products

 

11.

15

39

10

1

Basic

Chemicals

&

Chemical

Products

14

0.5

0

(except products of Petroleum & Coal)

0.0

9

2

20.

1

Rubber,

Plastic,

Petroleum

and

Coal

57.

25

1

Products

 

28

43.

1

NonMetallic Mineral Products

 

43.

14

2

97

11

1

Basic Metal and Alloy Industries

 

74.

3.3

3

53

5

30.

1

Metal

Products

and

Parts,

except

28.

85

4

Machinery and Equipment

 

1

37.

1

Machinery

and

Equipment

other

than

95.

63

5

Transport equipment

65

3.0

1

Transport Equipment and Parts

39.

5

6

84

19.

1

Other Manufacturing Industries

 

25.

8

7

59

&

9.8

9

5.6

7

40.

64

18.

25

29.

97

75

79

5.3

3.6

Current IIP Growth

120.56.225.142

Publishing, printing & reproduction of recorded media Coke, refined petroleum products & nuclear fuel
Publishing, printing & reproduction of recorded
media
Coke, refined petroleum products & nuclear fuel
Fabricated metal products, except machinery &
equipment
instruments,

Largest

except machinery & equipment instruments, Largest -month- Member Name: sunil kumar Member's Email address:

-month-

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Current growth and employment data of Industries

.

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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
• -
• Th
conside
• -
Chapter 4.
Capital Goods Sector
-
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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
-a-
Chapter 5.
National Manufacturing Policy
-
Summary of the Policy
decade.
Zones (NIMZ) -
self-
Each
land.
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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

- - 2 2 : : I I ndian Industry, Manufacturing Policy, SEZ states. How the

states. states.

How the Policy would achieve the above objectives?

states. How the Policy would achieve the above objectives? - Which Industry verticals will be give

states. How the Policy would achieve the above objectives? - Which Industry verticals will be give

states. How the Policy would achieve the above objectives? - Which Industry verticals will be give

- -

Which Industry verticals will be give special attention?

- Which Industry verticals will be give special attention? Member Name: sunil kumar Member's Email address:

- Which Industry verticals will be give special attention? Member Name: sunil kumar Member's Email address:

- Which Industry verticals will be give special attention? Member Name: sunil kumar Member's Email address:

- Which Industry verticals will be give special attention? Member Name: sunil kumar Member's Email address:

- Which Industry verticals will be give special attention? Member Name: sunil kumar Member's Email address:

- Which Industry verticals will be give special attention? Member Name: sunil kumar Member's Email address:

Member Name: sunil kumar Member's Email address: tripathisunilkumar21@gmail.com

120.56.225.142

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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

How they want to rationalize the Business Regulations?

-

Mechanisms

Technology Acquisition and Development Fund

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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
Skill Development:
-
-
National Investment and Manufacturing Zones
-of-
-
T
-
What is major difference from SEZ?
policies.
Size:
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120.56.225.142
Land Availability:
The
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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

cultivation.

The

Who will own NIMZ?

How NIMZ will be administered?

nment.

A

The

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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

Role of Central Government

-

Thi

How many NIMZ will be established?

Ahmedabad-

Shendra-

Manesar-

Khushkhera-Bhiwadi-

Dadri-Noida-

Pithampur-Dhar- -

Conclusion:

-in- cheap

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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
-
-
Viability Gap Funding for NIMZ
Chapter 6.
Special Economic Zones
Salient Features
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Type of SEZ

Multi Sector SEZ

500 hectares*

Sector Specific SEZ

50 hectares*

*Effective April 2013

General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

120.56.225.142

alon

How a SEZ is created?

`

concerne

Minimum Land Area Requirements

Minimum Area Requirements
Minimum Area Requirements

-

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General Studies Manual for UPSC and State IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
General Studies Manual for UPSC and State
IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ
-
pre-
-
Minimum Built-up Criteria:
-
B-
- -
land.
Fiscal benefits for a SEZ in a nutshell
Customs and Excise
-
-
Income Tax
 ---
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General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

Foreign Direct Investment (FDI)

Banking / Insurance / External Commercial Borrowings

-

Entre

-

Central Sales Tax Act

Service Tax

Environment

Companies Act

Sub-

-

-

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120.56.225.142

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T

SEZs : State wise Distribution

Sectors

Andhra Pradesh

109

Maharashtra

103

Tamil Nadu

69

Karnataka

62

Haryana

46

Gujarat

47

Uttar Pradesh

34

Kerala

29

West Bengal

20

Rajasthan

10

Madhya Pradesh

19

Orissa

10

General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

Monitoring In-principle approvals Notified SEZs 6 76 16 64 6 53 1 41 3 35
Monitoring
In-principle approvals
Notified SEZs
6
76
16
64
6
53
1
41
3
35
7
32
120.56.225.142
1
21
0
20
3
11
1
10
2
6
1
5

120.56.225.142 1 21 0 20 3 11 1 10 2 6 1 5  Developmen -

Developmen - -

Can SEZ units sell to other units in SEZ?

Yes. y. zone.

Current Number of Special Economic Zones in India

- 2012-

Statewise Distribution of SEZ in India

Formal approvals Member Name: sunil kumar Member's Email address: tripathisunilkumar21@gmail.com
Formal approvals
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Goa

7

Chandigarh

2

Punjab

8

Chattisgarh

2

Dadra & Nagar Haveli

2

Jharkhand

1

Nagaland

2

Uttarakhand

2

Delhi

3

Pondicherry

1

GRAND TOTAL

588

General Studies Manual for UPSC and State

IIndian Economy--22 :: IIndian Industry, Manufacturing Policy, SEZ

0

3

0

2

0

2

1

1

0

1

0

1

0

1

0

1

0

0

1

0

49

386*

120.56.225.142

In April 2013, this number stands 389
In April 2013, this number stands 389

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