Industrial Policy

Submitted By

212027 RESHMI RAVEENDRAN

Industrial Policy

It covers rules, regulations, principles, policies, & procedures laid down by government for regulating & controlling industrial undertakings in the country.

It prescribes the respective It prescribes the respective

roles of the public, private, joint, cooperative large, medium & small scale sectors for the development of industries.

It incorporates fiscal & monetary policies, tariff policy, labor policy.

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Objective

To maintain a sustained growth in productivity

To enhance gainful employment

To prevent undue concentration of economic power

To achieve optimal utilization of human resources To achieve optimal utilization of human resources

To attain international competitiveness and

To transform India into a major partner and player

in the global arena

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Industrial Policies

Industrial Policy Resolution of 1948

Industrial Policy Resolution of 1956

Industrial Policy Resolution of 1973

Industrial Policy Resolution of 1977 Industrial Policy Resolution of 1977

Industrial Policy Resolution of 1980

The New Industrial Policy of 1991

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Industrial Policy 1991

Policy focus:

Deregulating Indian industry;

Allowing the industry freedom and flexibility in responding to market forces and

Providing a policy regime that facilitates and fosters growth of Indian industry.growth of Indian industry.

Initiatives:

Industrial Licensing

Foreign Investment

Foreign Technology Agreements

Public Sector Policy

MRTP Act

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Project Objective

Sectors : Tourism

This Sector has been analysed for four different states:

Gujarat, Uttar Pradesh, Kerala, West Bengal

I have tried to analyse from an Entrepreneurs point of view as to based on the policies which are the most favourable states for each sector.on the policies which are the most favourable states for each sector.

Criteria for selecting the states:

-We have decided by analysing the secondary information available.

-Also rankings of the states for each sector from the government/ministry portals.

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Tourism IndustryTourism IndustryTourism IndustryTourism Industry

Uttar Pradesh

World tourism contribution to GDP is 11%

Indian tourism contribution to West Bengal

Kerala

Gujarat

Indian tourism contribution to GDP is 1.8%

Many industries associated

Employment generation

Most States has given Tourism -Industry Status so that hotels can benefit under Industrial Policy

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UP Domestic (2) , Foreign (4)

West Bengal -Domestic (9) , Foreign (6)

Kerala Foreign (8)

Gujarat Domestic (8)

Sources : http://tourism.gov.in/9

Challenges Oppurtunities

Lack of proper infrastructure

Human resources

Service levels

Lack of adequate marketing and promotion

Indias size and massive natural, geographic, cultural diversity

Medical tourism in India

Eco-tourism increasing popularity -eco-friendly hotels and tour packagespromotion

Taxation

Security

Regulatory issues

eco-friendly hotels and tour packages

Indias greatest adventure tourism assets - Himalayas & its rivers

Agri tourism, pilgrimage tourism, heritage tourism, and MICE tourism hold enormous potential.

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Tourism Policies in India

In the year 2002, the Government of India announced a New Tourism

Policy to give boost to the tourism sector.

Salient Features

NRI investment up to 100% allowed

Concession rates on customs duty of 25% for goods required for initial setup.

Benefit of 100% investment linked tax deduction on capital expenditure( for building tax incentive & operating new hotel at selctivelocations)

Kerala, Madhya Pradesh, Orissa and Gujarat have entered star category hotels at into Private Public Partnerships (PPP)

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Tourist Visa on Arrival schemes Industry status to tourism Single-window clearance for new hotel projectsUrban infrastructure and facilities such as the area around the TajMahal.

100 percent FDI in developing tourism infrastructure in IndiaAbout 5.92% of the countrys GDP comes from tourism . Tourism has also created a lot of employment (associated industries)has also created a lot of employment (associated industries)

Healthcare tourism -can avail private healthcare facilities. Incredible Indiacampaign implemented by the GOI -Catalyst in attracting record tourist in India is the first B2C campaign of its kind. Has created a unique brand and identity of India in World Travel & Tourism

Incredible IndiaVideo

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Gujarat Highlights:

Heritage, Museums, Achaeological site, Wildlife, Relegious

Sites, Fairs

Tourism Objective

Hospitality Industry GrowthIndirect EmploymentCultural DevelopmentInfrastructure DevelopmentEmployment Opportunities 90 jobs Per Million Rs. InvestmentEmployment Opportunities 90 jobs Per Million Rs. InvestmentSustainance of rich Heritage of Art & Craft

Strengths

Majority of the 2 crore NRIs, are Gujaratis . This untapped resource can be motivated Business friendly environment.Industry friendly State attracting the attention of investors worldwide with its open door policy and liberalized economyGujarat has a well-spread network of banking and financial institutions13

Strategy

The policy would aim at overall development of tourism by creating excellent infrastructure, connectivity and providing tourists with good facilities in important tourist and religious places

Special thrust to Event (Festival) based Tourism eg:eventslike Navratri, Somnath festival etc

The policy also aims to create an image for Gujarat in international arena by developing entertainment theme parks international arena by developing entertainment theme parks in certain areas, which would be considered as Special Entertainment Zones.

Entrepreneurship Government is very keen to promote women entrepreneurs and therefore, will give priority to projects promoted by women

Gujarat is the most investor friendly state

Sources: http://www.gujarattourism.com/14

West Bengal Highlights:

Heritage, Himalayas, Mangrove, Sea Forest, Pilgrimage

Tourism Objective

To improve the market share of West Bengal in international & domestic tourism market. To develop a portfolio of tourism products -Infrastructure Development & Employment OpportunitiesTo facilitate tourism by all segments, particularly the middle and lower To facilitate tourism by all segments, particularly the middle and lower income touristsTo develop partnership with the govt. and non-govt. agencies including PPP

Strengths

Has abundant natural resources of minerals West Bengal offers excellent connectivity to rest of India -rail, roadways, airports, portsGeographical advantagesGiven the variance of the tourism sites in the State, West Bengal has something to offer throughout the year.15

Strategy

Tourism has been declared as an Industry by the State in

1996. The Government in an effort to a number of schemes to

encourage Tourism.

The State Scheme of Incentives for Cottage and Small Scale

Units, 1993 were made available to the tourism industry.

The government will provide exemption on stamp duty,

employment generation subsidy, waiver of land conversion employment generation subsidy, waiver of land conversion

fee, tax holiday on VAT returns, etc, to new projects coming up

in the state.

The policy envisages to promote private sector investment in

greenfield / brownfield projects and through Public-Private-

Partnership (PPP) mode.

Sources : http://www.westbengaltourism.gov.in/16

Uttar Pradesh Highlights:

World Heritage Taj Mahal,Monuments, Pilgrimage, Fairs

Tourism Objective

To promote tourism development in harmony with local community & Employment.

To protect, preserve, and conserve the monuments To promote the highest possible standards of cleanliness, sanitation, and

landscaping To promote and develop UP as a prime national and international tourism To promote and develop UP as a prime national and international tourism

destination To showcase the values of cultural diversity, harmony and the depth of

civilisation that represents the State of U.P.

Strengths

World tourism destinations - Taj MahalReligious Sites (Hindu, Islamic, Buddhism, Jain & Christian) Tremendous cultural and architectural diversity all within one state Nationally acclaimed craft centres

(e.g.Moradabad-metalware;Lucknow-Chikaan work)

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Strategy

A policy framework /enabling legislation for privatisation of hotel properties

for land acquisition from tourism perspective

for incentives to promote cleanliness and sanitation drive

for adoption and up-keep of monuments by private corporates,

institutions and associations of local bodies

Entrepreneurship development and self employment programmes to Entrepreneurship development and self employment programmes to

involve the educated youth in providing various tourist facilities and

services and thereby creating employment opportunities.

Establishing Paryatan Mitra (Friend of Tourism) for assisting

entrepreneurs

Sources : http://www.up-tourism.com/

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Kerala Highlights:

Eco Tourism, Medical (Ayurveda), Adventure, Wildlife

Tourism Objective

To promote & market the state as a premium tourism destination in the domestic and international markets To promote and facilitate private investments in tourism , support infrastructure and ensure quality services and facilitiesTo ensure that the local community benefits from tourism, through a new model on PPPon PPP To enhance visitor satisfaction in destinations

Strengths

Well-developed rail, ports and telecom infrastructure covering all parts of the stateGood local administration, state govt support to industry & proximity to markets /ports. The state has high levels of literacy and a remarkably stable political situation.Good marketing and information support systems to enhance tourism inflow

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Strategy

2-year sales tax holiday for self-employment units with turnover below Rs 200,000

Single Window Clearance system- An online system will be introduced to expedite clearances in a time bound manner.

Labor Development Offices ensure that work does not suffer due to disputes in new enterprises

Approval / Classification of tourism units through Tourism Approval / Classification of tourism units through Tourism studies and collection of tourism statistics

Upgradation and creation of new tourism products

Ensuring quality infrastructure at tourist destinations

Government promotes entrepreneurial culture among the people of the State in a Mission mode.

Sources : http://www.up-tourism.com/

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Inference

Co-operative partnership between government departments, national tourism authorities, international and national trade associations, trade unions and the travel and tourism private sector

All stakeholders now need to share the responsibility for travel and tourisms future and need to deliver the following to ensure its sustainabilityto ensure its sustainability

As an entrepreneuer, we have to evaluate : Tourist traffic, tourist profile, infrastructure, purpose of travel, policies

Based on Policies:

Gujarat Rank 1

Kerala Rank 2

Uttar Pradesh Rank 3

West Bengal Rank 421

THANK YOUTHANK YOU

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