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The Industrial Policy Statement 1977 was announced by Janata Government led by Morarji Desai on 23 December, 1977. This policy was later replaced by incumbent Congress Government in 1980.
This was the first time when a non-congress government was ruling dispensation at centre. The Janata Government had a different approach and planning philosophy from Congress, and it reflected in its Industrial policy also.
Industrial policy of 1977 classified the small sector into 3 categories first one is Cottage and household industries number to is tiny sector and number 3 is small scale industries.
The purpose of the classification was to design policy measure of for each category the industrial policy of 1977 at Temple define the role of large scale sector by declaring them number one basic industries for providing infrastructural items like cement nonferrous Steel coil at Vini War 2 small industries and others number 2 capital good Industries required by small scale industries number 3 high Technology industry is widely required by small scale and Agriculture sector number 4 Other industries the industrial policy of 1977 is specified that the public sector would not only be the producer of important and strategic goods of basic nature but it would also be used effectively as a stabilizing force for maintaining essential supplies for the consumers the strategy of industrial policy of 1977 depend on the enforcement of foreign exchange Regulation Act.

Industrial Policy of 1980 sought to promote the concept of economic federation, to raise the efficiency of the public sector and to reverse the trend of industrial production of the past three years and reaffirmed its faith in the Monopolies and Restrictive Trade Practices Act and the Foreign Exchange Regulation Act .
The industrial policy statement of July 1980 spells out the following social economic objectives ▪︎optimum utilisation of installed capacity,▪︎ maximum production and achieving higher productivity,▪︎ higher Employment generation,▪︎ correction of regional imbalances ,▪︎ strengthening of the agriculture based through based industries and promotion of optimum inter-sectoral relationship,▪︎ promotion of export oriented industries,▪︎ promotion of economic federalism through equitable spread of investment and dispersal of Return and,▪︎ consumer protection against high prices and bad quality.


The long-awaited liberalised industrial policy was announced by the Government of India in 1991 in the midst of severe economic instability in the country. The objective of the policy was to raise efficiency and accelerate economic growth.

major objectives:

  1. Dismantling of the regulatory system development of the capital market and increasing competitive for the benefits of the common man.
  2. Development and utilisation of indigenous capabilities in technology and manufacturing as well as its up-gradation to worlds standard.
  3. Promoting workers participation in management in handling their welfare and equipping them to deal with inevitability of technological change.
  4. Running of the public sector on business lines.

To fulfill the above objectives the government introduced a series of initiatives in the new industrial policy in the following areas:

  1. Industrial licensing policy:
    Industrial licensing has been abolished for all the project except for a short list of industries in related to the security and strategic concerns, social reason hazardous Chemicals and overriding environmental reasons ,and items of elitist consumption. now licensing is compulsory for only five Industries they are alcohol ,cigarettes, hazardous, chemical electronic aero scope, defence equipment and industrial explosives.
  2. Foreign investment:

• automatic permission will be given for foreign Technology agreement in high priority industries.

• the foreign investment promotion board has been constituted to negotiate with the number of large International firms and approve direct foreign investment.

• automatic approval will be given for direct foreign investment up to 51 percent equity in high priority industries.

  1. Public sector policy:

• public Enterprises which are chronically sick and which are unlikely to be e turned to normal health will be referred to the board of Industrial and financial reconstruction for advice about rehabilitation and reconstruction.

• in order to raise resources and encourage wider public participation apart of the government share holding in the public sector would be offered to Mutual Funds Financial Institutions general public and workers.

• the policy reduced the number of industries reserved for the public sector for free Industries they are atomic energy minerals and rail transport.

• Board of public sector companies would be made more professional and give greater powers.

  1. MRTP act:
    The monopolies and restrictive trade parties act has been abolished Emphasis was placed on controlling and regulating monopolistic destructive and unfair trade practices.
  2. Abolition of phased manufacturing programs and removal of mandatory convertibility clause and liberalization of location policy and many more and are some other provisions of this policy.


The need to reach the Global competitiveness of the Indian manufacturing sector is imperative for the country long-term growth the national manufacturing policy is by far the most comprehensive and significant policy initiative taken by the government the policy is the first of its kind for the manufacturing sector as it addresses area of regulation infrastructure skill development Technology availability of Finance exit mechanism and other pertinent factors related to the growth of the sector.
vision of the policy:

  1. Ensuring sustainability of growth particularly with regard to environment.
  2. Enhancing the Global competitiveness of the Indian manufacturing centre.
  3. An increase in domestic value addition and Technology Dept in manufacturing.
  4. An increase in manufacturing sector growth to 12 to 14 percent per annum over the medium term.
  5. An increase in the share of manufacturing in the country gross domestic product from 16 to 25 percent by 2022.
  6. To create hundred million additional jobs by 2022 in manufacturing sector.
  7. Creation of appropriate skill sets among the ruler migrant and the urban poor for inclusive growth.

The policy focuses following sector:

  1. Industries with strategic significance like Aerospace shipping IT hardware and electronics telecommunication equipment defence equipment and solar energy.
  2. Employment intensive Industries like Textiles and garments leather and footwear Gems and Jewellery and food processing industries.
  3. Capital goods industries like machine tools heavy electrical equipment Highway Transport Earth moving and mining equipment.
  4. Public sector enterprises.
  5. Small and medium enterprises.
  6. Industries where India enjoying competitive advantages such as automobiles pharmaceuticals and medical equipment.


The national investment and manufacturing Jones have been conceived as giant industrial Greenfield townships to promote world Trance manufacturing activities the minimum size is 5000 actors where in the processing area has to be at least 30 percent.

The Central Government shall, by notification in the Official Gazette, notify an investment and manufacturing zones An SPV. will be constituted to exercise the powers conferred on, and discharge the functions assigned to it under this Policy to manage the affairs of the National investment and manufacturing zones. Every SPV shall be a legal entity by the name of the National investment and manufacturing zones. This SPV can be a company, including a Section 25 company depending upon the MOU between stakeholder. The indication of land will be undertaken by State Government State Government will be responsible for the water requirement power connectivity physical infrastructure utility link ages environmental impact studies and bearing the cost of resettlement and rehabilitation packages for the owners of acquired land the state government will also play a role in its acquisition if necessary in government purchase preference will be given to units in the national investment and manufacturing zones the central and state government are to provide exemptions from rules and regulations related to labour environment and many more a single window clearance would be provided for units in National investment and manufacturing zones.

Transfer of assets
In case a unit is declared sick the transfer of assets will be facilitated by the company managing the affairs of NIMZ.

Green technology and practice– 5% interest in reimbursement 10% capital subsidy for the production of equipment / machines / devices for controlling pollution, reducing energy consumption and water technology” encompasses a continuously evolving group of methods and materials, from techniques for generating energy to non-toxic cleaning products. … “Cradle to cradle” design – ending the “cradle to grave” cycle of manufactured products, by creating products that can be fully reclaimed or re-used.
Technology development-
Incentives for the production of equipment, machines, devices, for controlling pollution, reducing energy consumption and water conservation. Small and medium enterprises will be given access to the patent pool and part of reimbursement of technology acquisition costs up to a maximum of 5 years.

Special benefits to SMEs -rollover relief from long term capital gains tax to individuals on sale of residential of sale consideration. Status for venture capital funds with focus onSMES in the manufacturing sector.

The NIZMs identified underDMIC are:
Ahmedabad- dholera investors region, Gujarat,shendra bidkin industrial park city near aurangabad, Maharashtra;manesar-bawal investment region, haryana;, khushkera- bhiwadi -nee-mrana investment ration, Rajasthan; pithampur-dhar- mhow investment region, madhya pradesh;,dadri-Noida-gaziabad investment region, utter pradesh ,dighi-port industrial areas, maharashtra and jodhpur-pali – marwar region in Rajasthan.
National investment and manufacturing Jones identified outside DM IC are kuhi and umred Taluka in Maharashtra, Tumkur in Karnataka Chittoor in Andhra Pradesh ,medak in Telangana Prakasam in Andhra Pradesh, Gulbarga in Karnataka, kolar in Karnataka, bihar in Karnataka and kalinganagar in Odisha.

On 8 December 2014 the Government of India was announced for regulation of a nmcp with an aim to support the micro small and medium enterprises in the endeavour to become competitive. The objective of nmcp is to develop Global competitiveness among Indian m s m e s.The National Manufacturing Competitiveness Programme (NMCP) is a program launched by the Government of India to improve global competitiveness among the Indian MSMEs. Conceptualized by the National Manufacturing Competitiveness Council, the program was started in during the financial year 2007. This program target at enhancing the entire value chain of the m s m e sector through its nine components.

  1. Lean manufacturing competitiveness scheme for MSMEs .
  2. Design clinics came for MSMEs.
  3. Barcode under market development assistance scheme.
  4. Marketing assistant and Technology upgradation theme for MSMES.
  5. Enabling manufacturing sector to be competitive through quality management standards and quality Technology tools.
  6. Technology and quality upgradation support to MSMEs.
  7. Promotion of Information and Communication tools in MSME sector.
  8. Support for interpuriel and managerial development of SMES through incubators.
  9. National campaign for building awareness on intellectual property right.


The make in India initiative was launched by the prime minister in September 2014 as part of a wider set of nation building initiatives. Devised to transform India into a global design and manufacturing hub. The initiative aimed at promoting India as an important investment in destination and a global hub for manufacturing design and innovation. The make in India initiative does not forget manufacturing sector alone but also AIMS at promoting entrepreneurship in the country. The initiative is for the aimed at creating a conductive environment for investment, modern and efficient Infrastructures, opening up new sectors for foreign investment and foreign partnership between Government and industry through positive mindsetIndian government has launched the ‘Make in India Initiative’ in order to give thrust to the manufacturing sector’s growth rate to 12-14 percent per annum, but after five years, the initiative has failed to achieve its objective due to the various parameters.
The initiative is based on four pillars which have been identified to give a boost to entrepreneurship in India, not only in manufacturing but also in other factors.

▪︎The four pillars are as follows:-

  1. New mind set– in order to partner with industry in economic development of the country government shall act as a facilitator and not a regulator.
  2. New sectors :
    Foreign direct investment has been opened up in defence production insurance medical devices, construction and Railway infrastructure in a big way.
  3. New infrastructure:
    The government intends to develop Industrial Corridor and smart cities create world class and structure with state-of-the-art technology and communication Innovation and treated through a fast and improve infrastructure for IPR registration the requirement of skill of industry are to be identified and according to the development of workforce to be taken up.
  4. New processes:
    Make in India recognises ease of doing business as the single most important factor to promote entrepreneurship . A number of initiatives have already been undertaken to ease business environment .
    Components of the initiatives are equally available to all regions of the country in all 25 sectors have been included in the programme.


Pradhan Mantri Kaushal Vikas Yojana is the flagship scheme of the Ministry of Skill Development and Entrepreneurship . The objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood. Individuals with prior learning experience or skills will also be assessed and certified under Recognition of Prior Learning . Under this Scheme, Training and Assessment fees are completely paid by the Government. The union Cabinet on 20 March 2015 give its approval for the Pradhanmantri Kaushal Vikas Yojana with an outlay of Rupees 1500 crore for skill training of youth through the national Skill Development Corporation it is a flagship scheme of the MSDE.

The objective of the skill certification scheme is to enable a large number of Indian youth to take up industry relevant skills training that will help them in securing a better livelihood. individuals with prior learning experience for skills will also be assessed and certified under recognition of prior learning.
Under this scheme training and assessment fees are completely paid by the government:
Key Components of the scheme are:

  1. Short term training.
  2. Special projects.
  3. RPL.
  4. Kaushal and Rozgar Mela.
  5. placement guidelines.
  6. Monitoring guidelines.


Vocational training needs to be made aspirational to transform India into the skill capital of the world. In line with the same, Ministry of Skill Development and Entrepreneurship intends to establish visible and aspirational Model Training Centres in every district of the country. NSDC is the implementation agency for the project.
These training centres will be state-of-the-art Model Training Centres, called as Pradhan Mantri Kaushal Kendra . These centre would offer advanced training and also courses in foreign languages this will help those of our youth who seek job opportunities outside the country.

  1. Transform from a mandate driven Footloose model to sustainable institutional model.

2 . Focus on elements of quality sustainability and connect with stakeholders and skills delivery process.

  1. Create benchmark institutions that demonstrate aspirational value for competency based skill development training.

The union government on July 1st 2015 gave its approval for the India’s first integrated national policy for skill development and Entrepreneurship 2015. the policy acknowledges the need for an effective road map promotion of entrepreneurship as a key to a successful skills development.

The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenge of skilling at scale with speed and standard . It will aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common standards and link the skilling with demand centres. In addition to laying down the objectives and expected outcomes, the effort will also be to identify the various institutional frameworks which can act as the vehicle to reach the expected outcomes. The national policy will also provide clarity and coherence on how skill development efforts across the country can be aligned within the existing institutional arrangements.This policy will link skills development to improved employability and productivity.

To create and ecosystem of empowerment by Skilling a large scale At speed with high standard and to promote a culture of innovation based entrepreneurship which can generate wealth and Employment so as to livelihoods for citizens in the country.
The mission is to create a demand for a skilling across all over the country correct and align skilling with required competencies connect the supply of skilled human resources with sectoral demands certified and assess in alignment with Global and national standards and catalyse an ecosystem where in productive and innovative entrepreneurship germinates sustains and grows leading to the creation of a more dynamic entrepreneurial economy and more formal wage employment.

The core objective of the policy is to empower the individual by enabling him or her to realise that their full potential through a process of lifelong learning where competencies are accumulated we are instruments such as credible certifications credit accumulation and transfer and many more and individuals grow the society and Nation also benefit from their productivity and growth.
This will involve:

  1. Promote commitment and ownership of all stakeholders towards skill development and create an effective coordination mechanism.
  2. Operationalize a well defined Quality Assurance Framework aligned with Global standard to facilitate mobility of labour.
  3. Promote National standard in the skilling space to active involvement of employers in setting occupational standards helping develop curriculum providing apprenticeship opportunities and participating in assessments and providing gainful employment to skilled workforce with adequate compensation.
  4. Promote increased participation of women in the workforce through appropriate Skilling and gender mainstreaming of training.
  5. Ensure that the skilling needs of the the socially and geographical disadvantages and marginalized Groups like SC ST OBC minorities differentially abled persons and many more are appropriately take care of.
  6. Recognise the value of of on the job training by making apprenticeship in actual work environment and integral part of all skill development effort.
  7. Leverage modern technology to ensure scale assess and outreach in addition to ease of delivering content and monitoring result.
  8. Established and it based information system for and supply of skilled workforce which can help matching and connecting supply with demand.
  9. Make quality vocational training aspirational for both youth and sees it as a matter of choice and employer acknowledges the productivity linked to skilled workforce by paying the required requisite premium.
  10. Address human resource needs by analysing supply of skilled workers with sectoral requirements of industry and the country’s strategic priorities including flagship programmes like make in India.
  11. Increase the capacity and quality of training infrastructure and trainers to ensure equitable and easy access to every citizen.
  12. Focus on an outcome based approach towards quality is skilling that on one hand result in increased employability and better livelihoods for individuals and on the other hand translates into improve productivity across Primary secondary and territories actors.
  13. Ensure both vertical and horizontal Pathways to skilled workforce for further growth by providing seamless integration of skill training with formal education.
    The national Skill Development Mission was approved by the Union Cabinet on 1st July 2015 and officially launched by the prime minister on 15 July 2015 on the occasion of World Youth skill day.The National Skill Development Mission will provide a strong institutional framework at the Centre and States for implementation of skilling activities in the country.The Mission will have a three-tiered, high powered decision making structure. At its apex, the Mission’s Governing Council, chaired by the Prime Minister, will provide overall guidance and policy direction. The Steering Committee, chaired by Minister in Charge of Skill Development, will review the Mission’s activities in line with the direction set by the Governing Council.  the key institutional mechanism for achieving the objectives of the mission have been divided into three tiers:1. A governing Council for policy guidance at Apex level,2. A steering committee and,3. A mission directorate as the executive arm of the mission.
    Mission directorate will be supported by three other institution. 1. National Skill Development Agency,2. NSDC,3. Directorate General of training.
    7 submissions have been proposed initially to act as building blocks of achieving overall objective of the mission they are:
  14. Institutional training,2. Infrastructure,3. Convergence,4. Trainers,5. Overseas employment,6. Sustainable livelihood and,7. Leveraging public infrastructure.

mission objectives:

  1. Maintain a national database known as the labour market information system which will act as a portal for matching the demand and supply of skilled workforce in the country .
  2. Propagate aspirational value of scaling among youth by creating Social awareness on value of skill training. weaker and disadvantaged sections of security through focused outreach programs and targeted skill development activities.
  3. Promote convergence and co-ordination between skill development efforts of all central ministers are States or departments or implementations agency.
  4. Offer a passage for Overseas employment through specific programs mapped to global job requirement and benchmark to International standard.
  5. Enable Pathways for transitioning between the vocational training system and the formal education system through a Credit transfer system.
  6. Leverage existing public infrastructure and industrial facilities for scaling up skill training and capacity building efforts.
  7. Develop a network of quality instructors for trainers in the skill development ecosystem by establishing high quality teacher training institutions.
  8. Ensure sufficient high quality options for long-term scaling benchmark to internationally acceptable qualification standard which will ultimately contribute to the creation of a highly skilled work face.
  9. Bed capacity for skill development in critical on unorganised sectors as the construction sector where there are few opportunities for skills and provided Pathways for reskilling and upskilling workers in these identified sectors to enable them to transition into formal sector employment.
  10. Align employer or industry demand and workforce productivity with trainers aspirations for sustainable livelihood by creating a Framework for outcome focused training.
  11. Create an end to end implementation Framework for skill development which provides opportunities for lifelong learning this includes Incorporation of scaling in the school curriculum providing opportunities for quality long and short term skill training by providing gainful employment and ensuring career progression that meets the aspiration of trainers.
  12. Established and info cross-sectoral nationality and internationally acceptable standards for skills training in the country by creating a sound quality assurance Framework for killing applicable to all ministers state and private training providers.

The National Skill Development Corporation India was setup as a one of its kind, Public Private Partnership Company with the primary mandate of catalysing the skills landscape in India. National skill development is a unique model created with a well thought through underlying philosophy based on the following pillars:

  1. Create: Proactively catalyse creation of large, quality vocational training institutions.
  2. Fund: Reduce risk by providing patient capital. Including grants and equity.
  3. Enable: the creation and sustainability of support systems required for skill development. This includes the Industry led Sector Skill Councils.

The main objectives of the NSDC are to:

• Enhance, support and coordinate private sector initiatives for skill development through appropriate Public-Private Partnership models; strive for significant operational and financial involvement from the private sector

• Upgrade skills to international standards through significant industry involvement and develop necessary frameworks for standards, curriculum and quality assurance

• Prioritize initiatives that can have a multiplier or catalytic effect as opposed to one-off impact.

• Play the role of a “market-maker” by bringing financing, particularly in sectors where market mechanisms are ineffective or missing.


Skill loan scheme was launched by the union government on 15th July 2015 to provide a loan facility to aspirants wanting to do skill development course aligned to National skill qualification framework.

The important features of the scheme are as follows:

  1. Simple rate of interest at the rate hundred percent and 12 percent per annum is charged during the period of study.
  2. Amount of loan ranges from rupees 5000 rupees 150000 depending on the course having a repayment period of three to seven years.
  3. Any Indian national who has secured admission in a course run by industrial training institutes polytechnics are in a school recognised by the central or state education board or in a college affiliated to recognise University training partners affiliated to National Skill Development Corporation or as stated skill mission and stated skill Corporation can avail loans for the purpose.
  4. No processing fee is charged by banks.
  5. Risk of banks covered through credit guarantee fund scheme for skill development.
  6. No specific restriction with regard to age.
  7. No minimum course duration.
  8. The loan is sanctioned without any collateral security or third party guarantee.


Skills Acquisition and Knowledge Awareness for Livelihood Promotion aims to strengthen institutional mechanisms at both national and state levels, build a pool of quality trainers and assessors, establish robust monitoring and evaluation system for skill training programs, & provide access to skill training opportunities to the disadvantaged sections.
The union Finance Minister announced that in the financial year 2017-2018 a program Sankalp will be launched at a cost of rupees 4000 crore Sankalp will provide market relevant training to 3.5 crore youth. The objective is to enhance the employability potential of the youth to the maximum extent possible it is indeed a good answer to the situation of unemployment among youth prevailing in our country that is preventing the economic and social development.

There are two phases to this Scheme-the first is the initial Rs 4000 crore and the second phase starts with Rs 2200 crore. The second stage is termed as Skill Strengthening for Industrial Value Enhancement.

UDAAN is a special industry initiative for Jammu and Kashmir in the nature of partnership between the corporate of the India and ministry of home affairs and implemented by National Skill Development Corporation.
The scheme was initially upto the 2015 to 2016 which has been extended to 2019 to 2020 the programme aims to provide skills training and enhance the employability of unemployed youth of Jammu and Kashmir the scheme covers graduates post graduates and 3 year engineering diploma holders.
It has two objectives:

  1. To provide corporate India and exposure to the rich talent pool available in the state.
  2. Provide an exposure to the unemployed graduates to the best of Corporate India.

The scheme aims to cover 40,000 youth of Jammu and Kashmir over a period of 5 years and rupees 750 crore has been earmarked for the implementation of the scheme over a period of 5 years to cover the other incidental expenses such as travel cost boarding and lodging stipend and trainers and administrative cost.

Vocational education is education that prepares people to work as a technician or to take up employment in a skilled craft or trade ie tradesperson or artisan. Vocational education is sometimes referred to as career and technical education. A vocational school is a type of educational institution specifically designed to provide vocational education.
school education:
The centrally sponsored scheme of vocationalisation of Secondary Education of Ministry of HRD list out a crucial role for National Skill Development Corporation and its SSC in implementation of an n s q f the trainings conducted in the schema based on the national professional standards set by NSDC through its SSC.
Stakeholders in the implementation are state government NSDC SSC and NSDC training partner.
higher education:
In order to bridge the industry Academy a gap NSDC has developed a unique model to integrate skill based training into the academic cycle of the university’s NSDC is working with 21 University is UGC and a i t e e catering to more than 1200 colleges and 400 community colleges across the country.

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