New Industrial Policy to focus on jobs, push tech use, cut red tape

• The much-anticipated New Industrial Policy, which will replace the 27-year old existing policy and pave the way for the promotion of new technology and reduced regulations, has been placed before the Union Cabinet for approval.

• This will be the third industrial policy drafted in independent India. The first was announced in 1956, and the second, in 1991.

• The draft industrial policy floated in August 2017 by the Department of Industrial Policy & Promotion aims to create jobs over the next two decades, promote foreign technology transfer and attract $ 100 billion FDI annually.

• While the policy does not suggest direct changes in laws such as those governing labour, it is likely to propose the establishment of a body with representation from the Centre and the States to work on changes whenever required. It also suggests strengthening of municipal bodies.

• To promote the use of new technology such as robotics and artificial intelligence, the policy is expected to emphasize promoting R&D and set up an institutional mechanism to encourage commercial utilization of research done using government funds.

• The policy would include steps to cut down unnecessary regulations. The new industrial policy will encourage the industry to work together with the government to improve productivity, R&D efforts, and efficiency.

• The policy will focus on ‘Make in India’, improving ease of doing business, aligning trade and manufacturing, improving access to credit for MSMEs, industrial infrastructure creation, skill development and promotion of technology.

• The DIPP is also hopeful that the policy will act as a catalyst to help the Start-up India initiative to drive India’s economic growth.

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