Industrialization trends and policy

Sectoral Composition of GDP (% terms): Components of Gross Domestic Product (At Factor Cost).xls

1950

-51

19

52-5

3

1954

-55

19

56-5

7

1958

-59

19

60-6

1

1962

-63

19

64-6

5

1966

-67

19

68-6

9

1970

-71

19

72-7

3

1974

-75

19

76-7

7

1978

-79

19

80-8

1

1982

-83

19

84-8

5

1986

-87

19

88-8

9

1990

-91

19

92-9

3

1994

-95

19

96-9

7

1998

-99

20

00-0

1

2002

-03

20

04-0

5

2006

-07

20

08-0

9

2010

-11

20

12-1

3

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Agriculture & allied activities

Industry

Services

GDP at Factor Cost

% contribution to GDP by different industries: Components of Gross Domestic Product (At Factor Cost).xls

1950-51

1952-53

1954-55

1956-57

1958-59

1960-61

1962-63

1964-65

1966-67

1968-69

1970-71

1972-73

1974-75

1976-77

1978-79

1980-81

1982-83

1984-85

1986-87

1988-89

1990-91

1992-93

1994-95

1996-97

1998-99

2000-01

2002-03

2004-05

2006-07

2008-09

2010-11

2012-13 0.00

5.00

10.00

15.00

20.00

25.00

Industry

Mining & Quarrying

Manufacturing

Electricity, Gas & Water Supply

Industrial Trends

YearAgriculture &

allied activities Industry Services

1950-51 51.88 11.10 34.63

2012-13 13.69 18.94 67.41

Year Industry Mining & Quarrying

Manufacturin

g

Electricity, Gas & Water

Supply

1950-51 11.10 1.84 8.98 0.28

2012-13 18.94 1.96 15.11 1.87

Industrial Trends

in Rs. bnAgriculture &

allied activities

Industry Services GDP

1950-51 1450.52 310.26 968.42 2796.18

2012-13 7536.10 10421.85 37096.40 55054.37

in Rs bn Industry Mining & Quarrying

Manufacturi

ng

Electricity, Gas & Water

Supply

1950-51 310.26 51.38 250.96 7.91

2012-13 10421.85 1076.19 8316.48 1029.18

IIP

• Index of industrial production• IIP is compiled using data received from 16

source agencies• 682 items

• From http://mospi.nic.in/mospi_new/upload/iip/IIP_main.htm?status=1&menu_id=89

• Ministry of statistics and programme implementation

http://mospi.nic.in/mospi_new/upload/iip/base%20revision_2004-05_29nov11.pdf

Base years for IIP: Production of Select Industries.xls

Base yearBasic

GoodsCapital Goods

Intermediate Goods

Consumer Goods

2004-5 45.68 8.83 15.69 29.81

Definition of various industry categories:

• Basic Goods: Any bulk raw material/product used for further production of new.. fuel

• Capital Goods: Plants, machinery and goods used for further investments .. Diesel Engine, tractor

• Intermediate Goods: Any good/product produced as incomplete product or which goes as input in production for further finishing ..

• Consumer durable • Consumer non-durable: Products that are

directly used by consumers

Use based IIP base yr 2004-05

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 0.0

50.0

100.0

150.0

200.0

250.0

300.0

Basic Goods

Capital Goods

Intermediate Goods

Consumer Goods

Industrial Policy

• Definition: Government’s policy towards industries: their establishment, functioning, growth and management

• Important Industrial policies of India: First in 1948, then 1956 and 1991.

• Find their: objectives and modes of implementation

• Reference: Essentials of Business Environment. Chapter 12. K.Aswathappa.

Licensing Policy

• Under the Industries (Development & Regulation) Act, 1951, an industrial licence is required in respect of the following:

i. Items of manufacture falling under the list of compulsory licensing (only 5 industries are in the list)

ii. If a non SSI unit intends to manufacture items reserved exclusively for the Small Scale Sector.

In addition certain industries are reserved exclusively for the Public Sector (presently Atomic Energy and Railway Transport come under this category).

5 industries have been retained under compulsory licensing under the Industries (D&R) Act, 1951 viz.

(i) Distillation and brewing of alcoholic drinks; (ii) Cigars and cigarettes of tobacco and

manufactured tobacco substitutes; (iii) Electronic aerospace and Defence

equipment: all types; (iv) Industrial explosives(v) Hazardous chemicalsindustrialPolicy.pdf

Licensing Policy . Contd..

• If a non SSI unit intends to manufacture items reserved exclusively for the Small Scale Sector.

• reservedforssi2013.pdf

Industrial Entrepreneurship Development

Industrial Investment Intentions in the Licensable and Delicensed Sectors - An Overview

During 2012-13, in the delicensed sector 2757 IEMs (Industrial entrepreneurs memorandum) have been filed with proposed investment of Rs. 5,31,866 crore

Gujarat, Chhattisgarh and Maharashtra were the three leading states in terms of investment in the delicensed sector during 2012-13 with proposed investment of Rs.1,25,745 crores, 86,824 crores and Rs.86,391 crores respectively.

•

Industrial Investment intentions..

In the licensable sector 4 DILs(direct industrial licenses) have been issued with a proposed investment of Rs. 176 crore.

Similarly in the licensable sector, Andhra Pradesh with proposed investment of Rs.152 crore is the leading state followed by Puduchery with proposed investment of Rs. 15 crore during the year 2012-13.

The most preferred industries ….

In terms of investment in delicensed as well as licensable sector were:

Electrical equipments, Metallurgical industries, and Chemical other than Fertilizers with Rs. 1,19,275 crore(22%),Rs.1,17,731 crore(22%) and Rs.90,077 crore(17%) respectively.

575 IEMs were reported implementation during this year with proposed investment of Rs.8,680 crore.

Direct Industrial Licenses (DILs)

• As a measure of simplification of procedures the Department is granting Industrial Licences directly against applications except for those items which are exclusively reserved for Small Scale Industries vide Press Note No. 4(2003 series) dated 10.10.2003.

• During 2012-13, 4 such Direct Industrial Licences (DILs) have been issued