Description
Industrial Policy
INDUSTRIAL POLICY OF INDIA
Introduction
• The Industrial Policy indicates the respective roles of the public, private, joint and co-operative sectors; small, medium and large scale industries. • It underlines the national priorities and the economic development strategy. • It also spells the Government’s policy towards industries- their establishment, functioning, growth and management; foreign capital and technology, labor policy, tariff policy etc. in respect of the industrial sector. The Industrial Policy of India has determined the pattern of economic and industrial development of the economy. The Industrial Policy reflected the socio-economic and political ideology of development.
Industrial Policy Resolution 1948
• Outlined the approach to industrial growth and development • Emphasized the importance of securing a continuous increase in production and ensuring its equitable distribution.
Industrial Policy Resolution 1948
Basic Features1. Acceptance of the Importance of both private and Public Sector 2. Division of Industrial Sector-
Industrial Policy Resolution 1948
• State monopoly: Arms and ammunition, atomic energy and railway transport • State exclusively responsible for the establishment of new undertakings in six basic industries-coal,iron and steel , aircraft and manufacturer , ship building , manufacture of telephone and mineral oils except where, in the national interest, the State itself found it necessary to secure the cooperation of private enterprise.
Industrial Policy Resolution 1948
• Field of government control- 18 industries ie: Government will take responsibility to develop these industries under proper regulation. Automobile, Heavy Machines, Machine Tools, Fertilizer Sugar, Paper, Cement, Cotton, Woolen Textiles. • The field of Private Sector Rest of the industrial field open to private enterprise though the State would also progressively participate in this field.
• Field of Cottage & Small scale industry was considered as important for utilization of local resources produced as well as improvement of local employment. • Other Aspects:
?Foreign capital was also considered as important aspect for development of industry but its regulation & control was needed. ?Labor relations were considered as important. Focus was given on participative type of management.
Industrial Policy Resolution 1956
• After the adoption of the Constitution and the socio-economic goals, the Industrial Policy was comprehensively revised and adopted in 1956. • Sought to accelerate the rate of economic growth and speed up industrialization to achieve a socialist pattern of society. • Capital was scarce & the base of entrepreneurship not strong enough. Hence, they gave primacy to the role of the State to assume a predominant and direct responsibility for industrial development.
Industrial Policy Resolution 1956
• Basic Features 1.Division of Industrial sector-Monopoly of State-17 industries grouped in 5 classes-defence industries, heavy industry , mineral, transport and communication, power. - Among these 4 industry: Arms, Atomic, Rail & Air were only for government - Rest 13 industry all new units to be established by government only but existing private units may continue.
• Mixed sector of private and public-12 industries-machine tools, minerals, drugs, antibiotics, road & sea transport, plastics, fertilizer, rubber. For these sectors govt. would establish new units but not deny pvt units. • Industries left for private sector. All other units left out of first 2 category.
Industrial Policy Resolution 1956
• Objectives:
• Improvement in living standards and working
conditions for the mass of the people. • Reduction in income and wealth disparities • Prevention of private monopolies and concentration of economic power in different fields in the hands of small numbers of individuals.
Industrial Policy Resolution 1956
• Progressively predominant and direct responsibility for the State in setting up new industrial undertakings and for developing transport facilities • Undertake State trading on an increasing scale. • Equal opportunity for the private sector to develop and expand.
Industrial Policy Resolution 1956
• Private sector to develop on the principle of cooperation; increasing proportion of the private sector activities to develop on cooperative lines. • The adoption of the socialist pattern of society as the national objective. • The need for planned and rapid development.
Industrial Policy Resolution 1956
• Public sector: All industries of basic and strategic importance, or in the nature of public utility services. • The State can undertake any type of industrial production.
The Industrial Policy Statement 1980
• Formulated wrt the Industrial Policy Resolution of 1956 to provide for (i) Optimum utilization of installed capacity; (ii) Maximum production and achieving higher productivity; (iii) Higher employment generation; (iv) Correction of regional imbalances; (v) Strengthening of the agricultural base through agro based industries and promotion of optimum intersectoral relationship; • (vi) Promotion of export-oriented industries;
The Industrial Policy Statement 1980
(vii) Promotion of economic federalism through equitable spread of investment and dispersal of returns;
(viii) Consumer protection against high prices and bad quality.
The Industrial Policy Statement 1980
• • • • Liberalisation in Industrial Policy began Exemption from licensing Relaxation to FERA and FEMA companies Delicensing
Industrial Policy upto 1991
The industrial policy of India prior to liberalization in 1991 was characterized by the following features: • Dominance of Public Sector • Entry and Growth Restrictions • Restrictions on Foreign Capital and Technology Dominance of Public Sector: • The policy of the Government was to ensure that the public sector gained control over the economy. The Industrial Policy Resolution of 1956 brought the socialist pattern of society as the national goal and the Second Five Year Plan which gave emphasis to the basic and heavy industries, further expanded the role of the public sector.
Industrial Policy upto 1991
Entry and Growth Restrictions: • There were a number of entry and growth restrictions on the private sector (especially on large firms and foreign establishments) even in those industries where the private sector was allowed. License was mandatory for establishing new units with investments above a specified limit, for manufacturing of new products and for undertaking substantial expansion. • Large firms of Rs. 100 crore or above and dominant undertakings (those with a market share of 25% or more) had to obtain clearance under the Monopolies and Restrictive Trade Practices Act in addition to the industrial license. There were also restrictions on capital goods etc.
Restrictions on Foreign Capital and Technology: • In industries where foreign capital was allowed, it was subjected to a ceiling of 40% of the total equity although there were certain exception. Operations of foreign companies in India and issue of securities abroad by Indian Companies was regulated by the Foreign Exchange Regulation Act, FERA 1973.
INDUSTRIAL POLICY 1991
•
Govt . recognizes the need for Social and economic justice, to end poverty and unemployment and to build a modern, democratic, socialist, prosperous and forward-looking India India to grow as part of the world economy and not in isolation Greater emphasis placed on building up ability to pay for imports through our own foreign exchange earnings Development and utilization of indigenous capabilities in technology and manufacturing as well as its up gradation to world standards.
• •
•
The New Industrial Policy 1991
The Industrial Policy announced on July 24, 1991 heralded the economic reforms in India and sought to drastically alter the industrial scenario in our country. The most visible sign of the country’s economic crisis in early 1991 was: • Extremely low foreign exchange reserves of Rs. 2400 crore (just enough to buy from abroad only three weeks requirements.) • Inflation was as high as 13.5%
The New Industrial Policy 1991
Main features :Objectives of the Industrial Policy of the Government are – • to maintain a sustained growth in productivity; • to enhance employment; • to achieve optimal utilization of human resources; • to attain international competitiveness • Development of indigenous technology through greater investment in R&D and bring in new technology to help Indian manufacturing units Incentive for industrialization of backward areas • Ensure running of PSUs on business lines and cut their losses • Protect the interests of workers • Abolish the monopoly of any sector in any field of manufacture except on strategic or security grounds. • to transform India into a major partner and player in the global arena.
Policy focus is on – • 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. The New Policy has four features: Liberalisation; privatisation, globalisation and stabilisation
The New Industrial Policy 1991 (contd…)
Industrial Licensing: • Industrial Licensing was governed by the Industries Development & Regulation Act, 1951. • Industrial Licensing policy and procedures have been liberalized and continuously changed. Industrial licensing has been abolished for all projects except for a short list of industries All excepting 18 industries were freed from licensing. The number was later reduced to five. Distillation and brewing of alcoholic drinks; cigars and cigerattes; electronic aerospace; hazardous chemicals and industrial explosives
• The industries subject to compulsory industrial licensing account for a very small share of the value added in the manufacturing sector. • Industries are free to select the location of the industry. However, in cities with a population of over 1 million, the industries are to be located in the areas designated as “industrial areas” or 25 kms away from the Standard Urban area limits of the city. However, industries of a non polluting nature were exempt. The locational policy was abolished in 2008.
The New Industrial Policy 1991 (contd…)
Liberalisation of Foreign Investment: Policy towards foreign capital and technology has been modified very significantly. Foreign investment will bring advantages of technology transfer, marketing expertise, introduction of modern managerial techniques and new possibilities for promotion of exports.
• FDI is allowed in all industries, except industries falling in a small negative list. • Approvals for FDI upto 51% in high priority industries requiring large investments and advanced technology will be provided. • Since 1992-93, the Indian stock market is open for investment by Foreign Institutional Investors (FII’s) and Indian companies satisfying certain conditions may access foreign capital market by Euro issues. • Some of the recent initiatives taken to further liberalise the FDI regime, include opening up of sectors such as Insurance (upto
The New Industrial Policy 1991 (contd…)
Liberalisation of Foreign Investment……..
•
• •
Recent initiative under the small scale policy, equity holding by other units including foreign equity in a small scale undertaking is permissible up to 24 per cent. However there is no bar on higher equity holding for foreign investment if the unit is willing to give up its small scale status. Integration of the Indian Economy with the Global Economy is one of the objectives of the EXIM Policy. The import policy has been made liberal by reducing tariff levels. Another change has been the reform of the foreign exchange rate policy. The Rupee has been made fully convertible on the current account. The effort is to move towards capital account convertibility. The Capital Issues Control Act and the office of the Controller of Capital has been scrapped and free pricing of capital issues was introduced.
The New Industrial Policy 1991 (contd…)
Foreign Technology Agreements: • Government will provide automatic approval for technological agreements related to high priority industries within specified parameters. • Indian companies will be free to negotiate the terms for technology transfer with their foreign counterparts according to their own commercial judgement.
•
No permission is necessary for hiring of foreign technicians and foreign testing of indigenously developed technologies. Government will encourage foreign trading companies to assist in our export activities
Removal of MRTP Restrictions: • Most of the MRTP restrictions pertaining to concentration of economic power (those requiring permission for establishment of new undertaking, substantial expansion, manufacture of new items and mergers and acquisitions) were scrapped. • Existing units will be provided a new broad branding facility to enable them to produce any article without additional investment. • The thrust of the policy is on controlling and regulating monopolistic, restrictive and unfair trade practices.
Industrial Policy Support to SSI
• After the start of Industrialization the thrust was on large scale industries. • But the government also focused on SSI because it was decentralised, unorganised, small size, use of mainly indegenous technology, employment intensity, & its suitability for rural areas with limited tech structure.
Industrial Policy for SSI 1948
• The government stressed the role of SSI for balanced industrial growth • The central government frames the broad policies & coordinates the efforts • Primary responsibility lies with the state government to provide infrastructure for SSI.
Industrial Policy for SSI 1956
• The focus of this scheme was to improve the competitive strength of SSI. • For this purpose 128 items were exclusively reserved for production by this sector • 166 items were reserved for exclusive purchase by government from this sector.
Industrial Policy for SSI 1977
• The main thrust of policy was effective promotion of Cottage & Small Industries. • 504 items were reserved for exclusive production • Concept of DIC’s (District Industries Center) were introduced so that in each district single agency could meet all the requirements. • Technological advancements of SSI.
Industrial Policy for SSI 1980
• Investment limit was raised for Tiny Units to Rs 2 Lakh, Small to Rs 20 Lakh & Ancillary Units Rs 25 lakh. • Promotion of Agro Based Industries. • An early warning system was established to avoid sickness & take remedial measures.
Industrial Policy for SSI 1990
• Raised the investment ceiling, also created special subsidy for women entrepreneurs. • Reservation of items was raised to 836 • Small Industries Development Bank of India (SIDBI) was established to ensure smooth flow of funds to SSI. • Special emphasis was laid on Women & Young men training to inculcate entrepreneurship.
Industrial Policy for SSI 1991
• SSI were exempted from all licensing requirements for all articles. • Priority was given in allocation of Raw Materials.
Industrial Policy for SSI 2000
• Exemption of excise duty limit raised from Rs 50 Lakh to Rs 1 Crore. • Limit of Investment was raised from Rs 5 Lac to Rs 10 Lac. • Every SSI Unit was given a grant of Rs 75000 who obtained ISO 9000.
Industrial Policy for SSI 2001-02
• ECG (Export Credit Guarantee) for SSI was raised to Rs 5 Crore. • 14 items were de-Listed in 2001 related to Leather goods. • Market development scheme were launched for SSI sector.
2003-04
• 73 items de-reserved from exclusive list. • RBI directed all the nationalised banks to open exclusive branches for SSI’s. Due to this effort 417 specialised branches were made operational.
Fiscal Incentives
• Every SSI unit were given Tax holiday for 10 years with tax rebate upto 30%. • Every SSI unit were given excise tax concession for producing goods upto Rs 1 Crore (for home consumption purpose) • The duty for Export goods were 60% of normal duty.
Technical Assitance
• NSIC (National Small Industries Corporation ) was set up to assist the SSI units on technical grounds. • NSIC offers services to SSI units by its Technical Service Centers, Extension Centers, STP’s. • It also conducts Exhibitions in country & abroad so as to market the products.
Thank you
Saurabh Dubey
doc_392131621.ppt
Industrial Policy
INDUSTRIAL POLICY OF INDIA
Introduction
• The Industrial Policy indicates the respective roles of the public, private, joint and co-operative sectors; small, medium and large scale industries. • It underlines the national priorities and the economic development strategy. • It also spells the Government’s policy towards industries- their establishment, functioning, growth and management; foreign capital and technology, labor policy, tariff policy etc. in respect of the industrial sector. The Industrial Policy of India has determined the pattern of economic and industrial development of the economy. The Industrial Policy reflected the socio-economic and political ideology of development.
Industrial Policy Resolution 1948
• Outlined the approach to industrial growth and development • Emphasized the importance of securing a continuous increase in production and ensuring its equitable distribution.
Industrial Policy Resolution 1948
Basic Features1. Acceptance of the Importance of both private and Public Sector 2. Division of Industrial Sector-
Industrial Policy Resolution 1948
• State monopoly: Arms and ammunition, atomic energy and railway transport • State exclusively responsible for the establishment of new undertakings in six basic industries-coal,iron and steel , aircraft and manufacturer , ship building , manufacture of telephone and mineral oils except where, in the national interest, the State itself found it necessary to secure the cooperation of private enterprise.
Industrial Policy Resolution 1948
• Field of government control- 18 industries ie: Government will take responsibility to develop these industries under proper regulation. Automobile, Heavy Machines, Machine Tools, Fertilizer Sugar, Paper, Cement, Cotton, Woolen Textiles. • The field of Private Sector Rest of the industrial field open to private enterprise though the State would also progressively participate in this field.
• Field of Cottage & Small scale industry was considered as important for utilization of local resources produced as well as improvement of local employment. • Other Aspects:
?Foreign capital was also considered as important aspect for development of industry but its regulation & control was needed. ?Labor relations were considered as important. Focus was given on participative type of management.
Industrial Policy Resolution 1956
• After the adoption of the Constitution and the socio-economic goals, the Industrial Policy was comprehensively revised and adopted in 1956. • Sought to accelerate the rate of economic growth and speed up industrialization to achieve a socialist pattern of society. • Capital was scarce & the base of entrepreneurship not strong enough. Hence, they gave primacy to the role of the State to assume a predominant and direct responsibility for industrial development.
Industrial Policy Resolution 1956
• Basic Features 1.Division of Industrial sector-Monopoly of State-17 industries grouped in 5 classes-defence industries, heavy industry , mineral, transport and communication, power. - Among these 4 industry: Arms, Atomic, Rail & Air were only for government - Rest 13 industry all new units to be established by government only but existing private units may continue.
• Mixed sector of private and public-12 industries-machine tools, minerals, drugs, antibiotics, road & sea transport, plastics, fertilizer, rubber. For these sectors govt. would establish new units but not deny pvt units. • Industries left for private sector. All other units left out of first 2 category.
Industrial Policy Resolution 1956
• Objectives:
• Improvement in living standards and working
conditions for the mass of the people. • Reduction in income and wealth disparities • Prevention of private monopolies and concentration of economic power in different fields in the hands of small numbers of individuals.
Industrial Policy Resolution 1956
• Progressively predominant and direct responsibility for the State in setting up new industrial undertakings and for developing transport facilities • Undertake State trading on an increasing scale. • Equal opportunity for the private sector to develop and expand.
Industrial Policy Resolution 1956
• Private sector to develop on the principle of cooperation; increasing proportion of the private sector activities to develop on cooperative lines. • The adoption of the socialist pattern of society as the national objective. • The need for planned and rapid development.
Industrial Policy Resolution 1956
• Public sector: All industries of basic and strategic importance, or in the nature of public utility services. • The State can undertake any type of industrial production.
The Industrial Policy Statement 1980
• Formulated wrt the Industrial Policy Resolution of 1956 to provide for (i) Optimum utilization of installed capacity; (ii) Maximum production and achieving higher productivity; (iii) Higher employment generation; (iv) Correction of regional imbalances; (v) Strengthening of the agricultural base through agro based industries and promotion of optimum intersectoral relationship; • (vi) Promotion of export-oriented industries;
The Industrial Policy Statement 1980
(vii) Promotion of economic federalism through equitable spread of investment and dispersal of returns;
(viii) Consumer protection against high prices and bad quality.
The Industrial Policy Statement 1980
• • • • Liberalisation in Industrial Policy began Exemption from licensing Relaxation to FERA and FEMA companies Delicensing
Industrial Policy upto 1991
The industrial policy of India prior to liberalization in 1991 was characterized by the following features: • Dominance of Public Sector • Entry and Growth Restrictions • Restrictions on Foreign Capital and Technology Dominance of Public Sector: • The policy of the Government was to ensure that the public sector gained control over the economy. The Industrial Policy Resolution of 1956 brought the socialist pattern of society as the national goal and the Second Five Year Plan which gave emphasis to the basic and heavy industries, further expanded the role of the public sector.
Industrial Policy upto 1991
Entry and Growth Restrictions: • There were a number of entry and growth restrictions on the private sector (especially on large firms and foreign establishments) even in those industries where the private sector was allowed. License was mandatory for establishing new units with investments above a specified limit, for manufacturing of new products and for undertaking substantial expansion. • Large firms of Rs. 100 crore or above and dominant undertakings (those with a market share of 25% or more) had to obtain clearance under the Monopolies and Restrictive Trade Practices Act in addition to the industrial license. There were also restrictions on capital goods etc.
Restrictions on Foreign Capital and Technology: • In industries where foreign capital was allowed, it was subjected to a ceiling of 40% of the total equity although there were certain exception. Operations of foreign companies in India and issue of securities abroad by Indian Companies was regulated by the Foreign Exchange Regulation Act, FERA 1973.
INDUSTRIAL POLICY 1991
•
Govt . recognizes the need for Social and economic justice, to end poverty and unemployment and to build a modern, democratic, socialist, prosperous and forward-looking India India to grow as part of the world economy and not in isolation Greater emphasis placed on building up ability to pay for imports through our own foreign exchange earnings Development and utilization of indigenous capabilities in technology and manufacturing as well as its up gradation to world standards.
• •
•
The New Industrial Policy 1991
The Industrial Policy announced on July 24, 1991 heralded the economic reforms in India and sought to drastically alter the industrial scenario in our country. The most visible sign of the country’s economic crisis in early 1991 was: • Extremely low foreign exchange reserves of Rs. 2400 crore (just enough to buy from abroad only three weeks requirements.) • Inflation was as high as 13.5%
The New Industrial Policy 1991
Main features :Objectives of the Industrial Policy of the Government are – • to maintain a sustained growth in productivity; • to enhance employment; • to achieve optimal utilization of human resources; • to attain international competitiveness • Development of indigenous technology through greater investment in R&D and bring in new technology to help Indian manufacturing units Incentive for industrialization of backward areas • Ensure running of PSUs on business lines and cut their losses • Protect the interests of workers • Abolish the monopoly of any sector in any field of manufacture except on strategic or security grounds. • to transform India into a major partner and player in the global arena.
Policy focus is on – • 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. The New Policy has four features: Liberalisation; privatisation, globalisation and stabilisation
The New Industrial Policy 1991 (contd…)
Industrial Licensing: • Industrial Licensing was governed by the Industries Development & Regulation Act, 1951. • Industrial Licensing policy and procedures have been liberalized and continuously changed. Industrial licensing has been abolished for all projects except for a short list of industries All excepting 18 industries were freed from licensing. The number was later reduced to five. Distillation and brewing of alcoholic drinks; cigars and cigerattes; electronic aerospace; hazardous chemicals and industrial explosives
• The industries subject to compulsory industrial licensing account for a very small share of the value added in the manufacturing sector. • Industries are free to select the location of the industry. However, in cities with a population of over 1 million, the industries are to be located in the areas designated as “industrial areas” or 25 kms away from the Standard Urban area limits of the city. However, industries of a non polluting nature were exempt. The locational policy was abolished in 2008.
The New Industrial Policy 1991 (contd…)
Liberalisation of Foreign Investment: Policy towards foreign capital and technology has been modified very significantly. Foreign investment will bring advantages of technology transfer, marketing expertise, introduction of modern managerial techniques and new possibilities for promotion of exports.
• FDI is allowed in all industries, except industries falling in a small negative list. • Approvals for FDI upto 51% in high priority industries requiring large investments and advanced technology will be provided. • Since 1992-93, the Indian stock market is open for investment by Foreign Institutional Investors (FII’s) and Indian companies satisfying certain conditions may access foreign capital market by Euro issues. • Some of the recent initiatives taken to further liberalise the FDI regime, include opening up of sectors such as Insurance (upto
The New Industrial Policy 1991 (contd…)
Liberalisation of Foreign Investment……..
•
• •
Recent initiative under the small scale policy, equity holding by other units including foreign equity in a small scale undertaking is permissible up to 24 per cent. However there is no bar on higher equity holding for foreign investment if the unit is willing to give up its small scale status. Integration of the Indian Economy with the Global Economy is one of the objectives of the EXIM Policy. The import policy has been made liberal by reducing tariff levels. Another change has been the reform of the foreign exchange rate policy. The Rupee has been made fully convertible on the current account. The effort is to move towards capital account convertibility. The Capital Issues Control Act and the office of the Controller of Capital has been scrapped and free pricing of capital issues was introduced.
The New Industrial Policy 1991 (contd…)
Foreign Technology Agreements: • Government will provide automatic approval for technological agreements related to high priority industries within specified parameters. • Indian companies will be free to negotiate the terms for technology transfer with their foreign counterparts according to their own commercial judgement.
•
No permission is necessary for hiring of foreign technicians and foreign testing of indigenously developed technologies. Government will encourage foreign trading companies to assist in our export activities
Removal of MRTP Restrictions: • Most of the MRTP restrictions pertaining to concentration of economic power (those requiring permission for establishment of new undertaking, substantial expansion, manufacture of new items and mergers and acquisitions) were scrapped. • Existing units will be provided a new broad branding facility to enable them to produce any article without additional investment. • The thrust of the policy is on controlling and regulating monopolistic, restrictive and unfair trade practices.
Industrial Policy Support to SSI
• After the start of Industrialization the thrust was on large scale industries. • But the government also focused on SSI because it was decentralised, unorganised, small size, use of mainly indegenous technology, employment intensity, & its suitability for rural areas with limited tech structure.
Industrial Policy for SSI 1948
• The government stressed the role of SSI for balanced industrial growth • The central government frames the broad policies & coordinates the efforts • Primary responsibility lies with the state government to provide infrastructure for SSI.
Industrial Policy for SSI 1956
• The focus of this scheme was to improve the competitive strength of SSI. • For this purpose 128 items were exclusively reserved for production by this sector • 166 items were reserved for exclusive purchase by government from this sector.
Industrial Policy for SSI 1977
• The main thrust of policy was effective promotion of Cottage & Small Industries. • 504 items were reserved for exclusive production • Concept of DIC’s (District Industries Center) were introduced so that in each district single agency could meet all the requirements. • Technological advancements of SSI.
Industrial Policy for SSI 1980
• Investment limit was raised for Tiny Units to Rs 2 Lakh, Small to Rs 20 Lakh & Ancillary Units Rs 25 lakh. • Promotion of Agro Based Industries. • An early warning system was established to avoid sickness & take remedial measures.
Industrial Policy for SSI 1990
• Raised the investment ceiling, also created special subsidy for women entrepreneurs. • Reservation of items was raised to 836 • Small Industries Development Bank of India (SIDBI) was established to ensure smooth flow of funds to SSI. • Special emphasis was laid on Women & Young men training to inculcate entrepreneurship.
Industrial Policy for SSI 1991
• SSI were exempted from all licensing requirements for all articles. • Priority was given in allocation of Raw Materials.
Industrial Policy for SSI 2000
• Exemption of excise duty limit raised from Rs 50 Lakh to Rs 1 Crore. • Limit of Investment was raised from Rs 5 Lac to Rs 10 Lac. • Every SSI Unit was given a grant of Rs 75000 who obtained ISO 9000.
Industrial Policy for SSI 2001-02
• ECG (Export Credit Guarantee) for SSI was raised to Rs 5 Crore. • 14 items were de-Listed in 2001 related to Leather goods. • Market development scheme were launched for SSI sector.
2003-04
• 73 items de-reserved from exclusive list. • RBI directed all the nationalised banks to open exclusive branches for SSI’s. Due to this effort 417 specialised branches were made operational.
Fiscal Incentives
• Every SSI unit were given Tax holiday for 10 years with tax rebate upto 30%. • Every SSI unit were given excise tax concession for producing goods upto Rs 1 Crore (for home consumption purpose) • The duty for Export goods were 60% of normal duty.
Technical Assitance
• NSIC (National Small Industries Corporation ) was set up to assist the SSI units on technical grounds. • NSIC offers services to SSI units by its Technical Service Centers, Extension Centers, STP’s. • It also conducts Exhibitions in country & abroad so as to market the products.
Thank you
Saurabh Dubey
doc_392131621.ppt