INDUSTRIAL POLICY OF INDIA

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INDUSTRIAL POLICY OF INDIA

         An industrial policy of a country is the country’s official effort to encourage for development and growth of its economy. It is also called IP in short and industrial strategy. It focused on manufacturing sectors and service sectors. The government takes decisions for improving the competitiveness and capabilities of domestic firms. The Govt. Takes the decision to promote structural transformation. A country’s infrastructures play a major role in the economy and so it has a key role in IP.

INDUSTIAL POLICY OF INDIA
INDUSTIAL POLICY OF INDIA

To know about industrial policywe should first know what is an industry.

          The industry is premises where new products are manufactured by the processing of raw materials, and it changes the properties of new products in nature than the previous one.
       Premises where economical/commercial activity is done by the processing of raw materials to produce/manufacture the finished goods.
As per the ministry of MSME, has classified it into two groups:-

2. Service Sectors.

Both sectors have been classified into three groups:

1. Micro Scale units.

2. Small Scale units.

3. Medium Scale units. 

1. Manufacturing Sectors:- 

Industry sectors/producing sectors is called a secondary sector where all the human basic need are produced. Premises where all branches of human needs are produced by the transformation of raw materials to finished goods.

INDUSTIAL POLICY OF INDIA
INDUSTRIAL POLICY OF INDIA

As per the ministry of MSME, this sector has the following classifications:-


1.
    Micro Scale Units in the industrial policy of India: 

                 The microscale unit is that category in which investment in the cost of plant and machinery will be maximum up to Rs.25.00 lakhs only. The nature of classification is based only on P/M investment. This sector has a large number of employments. These units develop domestic markets and play an important role in the country`s economy.

2. Small Scale Units in the industrial policy of India:– 

         Small scale units play a very important role in generating employment. It has a major share in the country`s economy. Small scale industry is that which has invested in plant and machinery in between Rs.25.00 lakhs to Rs.5.00 crores only.

3. Medium-scale Units in the industrial policy of India: 

          Section 7 of Micro, Small & Medium Enterprises Development  Act, 2006, says thatmedium-scale industry is that which has invested in plant and machinery in-between Rs.5.00 crores to Rs.10.00 crores.

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Now the service sector, the service sector means repairing and servicing along with providing service in different sectors. Service sectors play an important role in the economy of the country. It is called a tertiary sector and plays the third position out of three traditional economic sectors.

INDUSTIAL POLICY OF INDIA
INDUSTRIAL POLICY OF INDIA

This sector has also been classified into three sectors:-

1Microservice Sectors:– 

                This sector is an important part of our economics. It provides self-employment to a greater extent.  The micro sector of India is the largest sector in the world next to china. It has been classified on the cost of plant and machinery which has invested to maximum Rs.10.00 lakhs.

2Small Service Sectors:–  

             This sector provides a wide range of services covering a large number of products from traditional to current high tech items. It plays a vital role in solving un-employments. It has also been classified on the cost of plant and machinery which has invested to a maximum in between Rs.10.00 lakhs to 2.00 crores.

3 Medium Service Sectors:– 

 

        The Medium scale service sectors have also been classified on investment of P/M. This scale of the service sector is contributing significantly output, employment export, etc. in the economy. This sector plays a critical role in the economy by providing employment to a large extent of unskilled and semi-skilled laborers and raises the production of manufacturing sectors extending support to bigger industries. It has been classified on the cost of plant and machinery which has invested to the maximum in between Rs.2.00 crore to Rs.5.00 crores.

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ALL ABOVE  CONTENTS ARE AS PER CENTRAL GOVT. SMALL SCALE INDUSTRIES DEPARTMENT. 
      BUT THE PRESENT CENTRAL GOVT HAS CHANGED THE ABOVE OLD DEFINITION AND HAS DESIGNED ON ANNUAL REVENUE GENERATED BY THE UNITS. THIS POLICY OF THE GOVT WAS DECIDED ON 04/2019 IS AS FOLLOW:-

AS PER THE NEW POLICY OF THE CENTRAL GOVT:

1. The micro-industry/business/enterprise is that which generates the revenue up to Rs 5.00 crores.
 
2. A small industry/ business/enterprise is that which generates the revenue in between Rs. 5.00 crores to Rs 75.00 crores.

3. The medium industry/business/enterprise is that which generates the revenue in between Rs 75.00 crores Rs 250.00 crores.

Created by Er. K. N. Singh

One thought on “INDUSTRIAL POLICY OF INDIA

  • 06/03/2020 at 1:12 AM
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    knowledgeable post

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