Major sectors of Indian Industry
Mining Industry
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The mining sector is a vital industry for the Indian economy.
- It provides basic raw materials to many important industries.
- India is the world’s second-largest coal producer.
- In 2021 India has become the world’s second largest producer as well as consumer of steel.
1.Mines and minerals act 1957
It prescribed rules and regulations for mining sector in India -
- The act applies to all minerals except minor minerals and atomic minerals.
- State governments are responsible for mining minor minerals, and river sand is considered a minor mineral.
- The act mandates that all plans and sections related to a mine must be prepared using a combination of digital global positioning system technology.
This act was amended in 2015 and 2016 to add some of the new provisions in the act-
- New rules have been introduced to regulate the sale of 50% of minerals produced from captive leases.
- The penalty provisions in these rules have been rationalized.
- Previously, the rules prescribed a penalty of imprisonment up to 2 years or a fine up to 5 lakh rupees, or both, for violation of each and every rule, regardless of the severity of the violation.
Amendment in the rules categorized the violations of the rules under the following major heads:
Major Violations-
- Penalty of imprisonment, fine or both.
Minor Violations-
- Penalty reduced. Penalty of only fine for such violations prescribed.
Violation of other rules has been decriminalized.
- A fixed percentage of revenue from any mine will be allocated to the development of the surrounding area, called a District Mineral Foundation.
- The state government will set the rates for this allocation, which will be in addition to the royalty.
- A National Mineral Exploration Trust has been established to explore and promote non-coal minerals.
- Licenses for mining will now be valid for 50 years, compared to the previous 30 years.
- There will be no renewal of licences, only re-auction.
- District Mineral Foundation (DMF) to address the grievances of the people affected by mining and in turn improve the image of the mining industry.
Amendment in 2021-
- The act was revised to include specific royalty rates for various minerals such as Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite, and Molybdenum. These chemicals are utilized in both industrial and agricultural sectors.
2.National Mineral Exploration Policy 2019
The aim
- The National Mineral Exploration Policy of 2019 aims to create an effective, meaningful, and implementable policy that will enhance transparency in mining practices.
Some of the objectives of this policy were-
- Increase exploration activities with increased participation from the private sector.
- Maximize the sectoral contribution to the Indian Economy.
- Reduce Imports.
- Use New technology in mining and mineral exploration.
- Increasing role of states and increasing FDI.
3.Production Linked Incentive, or PLI, scheme
- It is a scheme of the Government of India is a form of performance-linked incentive to give companies incentives on incremental sales from products manufactured in domestic units.
- It is aimed at boosting the manufacturing sector and to reduce imports.
The Automobile industry
- The automobile industry in India is a significant driver of macroeconomic growth and technological development.
- India is the largest manufacturer of two-wheelers and three-wheelers in the world.
- India is the fourth-largest manufacturer of passenger cars globally.
FDI in Automobile industry
- Under the automatic route, 100% Foreign Direct Investment (FDI) is permitted along with full delicensing.
Policies and Initiatives for automobile industry
1.National Automobile Scrappage Policy-
- The Vehicle Scrapping Policy was announced in March 2021 by the government.
- The policy aims to cover 51 lakh Light Motor Vehicles (LMVs) that are over 20 years old and another 34 lakh LMVs over 15 years old.
- The implementation of the policy is expected to boost automobile sales and provide employment opportunities.
- It will help to reduce import costs and generate incremental GST revenue for the government.
- The policy is also expected to help address the global shortage of semiconductor chips.
- Old vehicles will have to pass a fitness test before re-registration and as per the policy government commercial vehicles more than 15 years old and private vehicles which are over 20 years old will be scrapped.
- Road tax rebate and Vehicle discount will be provided to encourage vehicle scrapage.
It will help in -
- Reduction in Prices.
- Reduction of Pollution.
- Improved Revenue.
- Employment generation.
2.Fame India Scheme-
- FAME India is a part of the National Electric Mobility Mission Plan. Main thrust of FAME is to encourage electric vehicles by providing subsidies.
It is divided into two phases-
Phase I: started in 2015 and was completed on 31st March, 2019
Phase II: started from April, 2019, and completed by 31st March, 2022
- In the First Phase of the FAME Scheme, about 2.8 lakh hybrid and electric vehicles were supported by way of demand incentive, amounting to about INR 359 crore.
- In Phase II electrification of the public transportation , encouragment of advanced batteries like a Lithium Ion battery and other new technology batteries.
The scheme covers Hybrid & Electric technologies like Mild Hybrid, Strong Hybrid, Plug in Hybrid & Battery Electric Vehicles.
3.National Electric Mobility Mission Plan 2020 (NEMMP)-
- The NEMMP (National Electric Mobility Mission Plan) initiative aims to promote consistent, affordable, and competent hybrid and electric vehicles (xEVs) that meet consumer performance and price expectations.
- The NEMMP 2020 plan includes the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme launched by the government to promote the manufacturing of electric and hybrid vehicle technology.
4.National Automotive Testing and R&D Infrastructure Project (NATRIP)-
- It aims at converting India’s unparalleled strengths in IT and electronics with the automotive engineering sectors.
- The main area of focus is on providing low-cost manufacturing and product development solutions.
The vision of this project involves-
- Deepen manufacturing.
- Encourage localized R&D.
- Boost exports.
What was the first Industrial Policy Resolution in India, and when was it introduced?
The first Industrial Policy Resolution was introduced in 1948.
What were the three broad categories into which the industrial activities were divided under the first Industrial Policy Resolution?
The three categories were items under central government control, items under state government control, and items for the private sector.
What was the objective of the second Industrial Policy Resolution of India, and when was it introduced?
The objective of the second Industrial Policy Resolution was to provide a comprehensive statement on industrial development. It was introduced in 1956.
How many industries were included in Schedule A of the second Industrial Policy Resolution?
Schedule A of the second Industrial Policy Resolution included 17 industries.
What were the objectives of the Industrial Policy Statement of 1969?
The objectives of the Industrial Policy Statement of 1969 were to address the limitations of the licensing policy, promote competition in the domestic market, and encourage technological upgrades and modernization of industries.
What was the Monopolistic and Restrictive Trade Practices (MRTP) Act?
The MRTP Act was passed in 1969 to regulate the trading and commercial practices of firms and to prevent monopoly and concentration of economic power.
What were the provisions of the MRTP Act?
The MRTP Act required companies with assets valued at ₹25 crore or more to obtain permission from the Indian government prior to expanding, launching a new venture, or acquiring other companies. The Act also established the MRTP Commission for redressal of prohibited and restricted practices of trade.
What was the objective of the Industrial Policy Statement of 1973?
The objective of the Industrial Policy Statement of 1973 was to foster closer interaction between the agricultural and industrial sectors.
How many core industries were included in the Industrial Policy Statement of 1973?
The Industrial Policy Statement of 1973 included six core industries - Iron and Steel Industry, Cement, Coal, Crude Oil, Oil Refining, and Electricity.
What was the objective of the Industrial Policy Statement of 1977?
The objective of the Industrial Policy Statement of 1977 was to promote greater decentralization of the industrial sector and increase participation from small-scale, tiny, and cottage industries.
What was the objective of the Industrial Policy Resolution of 1985 & 86?
The objective of the Industrial Policy Resolution of 1985 & 86 was to ease regulations governing foreign investment and to relax the FERA regime.
What was the role of the District Industries Centres (DICs)?
The DICs were established to support the growth of small and cottage industries on a large scale.
What is the contribution of MSMEs to the Indian economy?
MSMEs account for about 30% of India's GDP, 45% of the manufacturing output, and employ around 11 crore people.
What is a Micro Enterprise?
A Micro Enterprise is an enterprise with net investment in plant and machinery or equipment up to Rs. 1 crore and net turnover ≤ Rs. 5 crores.
What is a Small Enterprise?
A Small Enterprise is an enterprise with net investment in plant and machinery or equipment up to Rs. 10 crores and net turnover ≤ Rs. 50 crores.
What is a Medium Enterprise?
A Medium Enterprise is an enterprise with net investment in plant and machinery or equipment up to Rs. 50 crores and net turnover ≤ Rs. 250 crores.
What is the PMEGP scheme?
The Prime Minister Employment Generation Programme (PMEGP) aims to provide financial assistance to self-employment ventures.
Who is eligible for the PMEGP scheme?
Individuals above the age of 18 can apply for this scheme.
What is the Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)?
The scheme aims to motivate first-generation entrepreneurs towards self-employment by providing credit guarantee funding for third-party guarantee-free/collateral-free loans.
What are the benefits of the CGTMSE scheme?
Guarantee on credits for loans up to INR 2 crores, without third-party guarantee and collateral.
What is the National SC-ST Hub?
The National SC-ST Hub is a scheme aimed at providing professional support to entrepreneurs belonging to the Scheduled Castes and Scheduled Tribes.
What are the benefits of the National SC-ST Hub scheme?
The scheme provides a 25% subsidy on the purchase of plant and machinery/equipment, marketing and mentoring support, reimbursement of transaction costs, and facilitating participation in exhibitions and vendor development programs.
What is the ASPIRE scheme?
The ASPIRE scheme aims to establish a network of technology centers, promote entrepreneurship and innovation in agro-industry, and support rural industries.
What is the Zero Defect Zero Effect program?
The Zero Defect Zero Effect (ZED) program was launched in 2016 to promote production methods that result in products with no defects and to minimize the impact on the environment.
What is the Raising and Accelerating MSME Performance (RAMP) scheme?
The RAMP scheme aims to enhance the performance of MSMEs, promote technology up-gradation, innovation, digitization, market access, credit, greening initiatives, and more.
What is the Scheme of Fund for Regeneration of Traditional Industries (SFURTI)?
The SFURTI scheme aims to establish traditional artisans and industries into clusters to support them towards long-term sustainability and competitiveness.
What are the benefits of the SFURTI scheme?
Financial assistance of up to 90% of hard intervention costs (physical infrastructure) and the entire cost of soft intervention (skill, software, etc.) will be provided.
What is the Modified Market Development Assistance (MMDA) Scheme under Khadi Vikas Yojana?
The MMDA scheme has been introduced to add value to Khadi and enable its products to be sold at market-oriented prices.
What is the primary objective of the MMDA scheme?
The primary objective of the scheme is to decontrol and de-link the sales price from the Cost Chart.
What is the Pradhan Mantri Mudra Yojana?
The Pradhan Mantri Mudra Yojana is a scheme that aims to provide loans at low rates to micro-finance institutions and non-banking financial institutions.