Policy focus
4. Policy for Small Scale A differential investment limit has been adopted since
9th October 2001 for 41 reserved items where the investment limit upto rupees
five crore is prescribed for qualifying as a small scale unit. The investment limit
for tiny units is Rs. 25 lakhs.
749 items are reserved for manufacture in the small scale sector. All
undertakings other than the small scale industrial undertakings engaged in the
manufacture of items reserved for manufacture in the small scale sector are
required to obtain an industrial licence and undertake an export obligation of 50%
of the annual production. This condition of licensing is, however, not applicable to
those undertakings operating under 100% Export Oriented Undertakings
Scheme, the Export Processing Zone (EPZ) or the Special Economic Zone
Schemes (SEZs).
7. Policy for Foreign Direct Investment (FDI)The Department has put in place
a liberal and transparent foreign investment regime where most activities are
opened to foreign investment on automatic route without any limit on the extent
of foreign ownership. Some of the recent initiatives taken to further liberalise the
FDI regime, inter alia, include opening up of sectors such as Insurance (upto
26%); development of integrated townships (upto 100%); defence industry (upto
26%); tea plantation (utp 100% subject to divestment of 26% within five years to
FDI); Encenhancement of FDI limits in private sector banking, allowing FDI up to
100% under the automatic route for most manufacturing activities in SEZs;
opening up B2B e-commerce; Internet Service Providers (ISPs) without
Gateways; electronic mail and voice mail to 100% foreign investment subject to
26% divestment condition; etc.
The Department has also strengthened investment facilitation measures through
Foreign Investment Implementation Authority (FIIA).
INVESTMENT CLIMATE
Due to many positive developments in the Indian Economy have further
improved the investment climate of the country. The overall growth in GDP
as per CSO in real terms is 8.2%. in 2003-04. During April-March 2003-
04,growth rate in industrial output was 6.9% against 5.7% in corresponding
period in previous year.
Further surge in foreign exchange reserves, which not only strengthens
India's external sector, is also a source of confidence to prospective
foreign investors. The soft interest rate is helping the industry to improve
its competitiveness.
Industrial Policy
This site provides detail information onIndustrial Policy of India. The site also focuses on the
current scenario and objectives of Industrial Policy of India.
Post 1990s have seen a sea of change in the Industrial Policy of India. The
overprotective Indian Market were opened to foreign companies andinvestors. Thus Indian
Industryregistered an impressive growth during the last decade and half. The number
ofindustries in India have increased manifold in the last fifteen years. Though the main
occupation has been agriculture for the bulk of the Indian population, it was realized that India
would become a prosperous and a modern state with industrialization. Therefore different
programs were formulated and initiated to build up an adequate infrastructure for rapid
industrialization and improve theindustrial scenario in India.
Industrial Licensing.
Industrial
Entrepreneurs Memorandum.
Locational Policy.
Environmental issues.
The Industrial Policy of India fueled rapid increase in the various sectors in all verticals. But
the striking factor was observed in the IT, Telecommunication and Pharmaceutical Industry. The
Indian software industry has grown at a massive rate from a mere US $ 150 million in 1991-92
to a staggering US $ 5.7 billion (including over $4 billion worth of software exports) in 1999-
2000. No other Indian industry has performed this well against the global competition. The
telecommunication industry also marked stupendous growth, so is the pharmaceutical industry.
The Industrial Policy of resurgent India has helped Indian industry to grow in leaps and
bounds.
The Government of India's liberalized Industrial Policy aims at rapid and substantial economic
growth, and integration with the global economy in a harmonized manner. The Industrial
Policy reforms have reduced the industrial licensing requirements, removed restrictions on
investment and expansion, and facilitated easy access to foreign technology and foreign
direct investment.
For further information on Industrial Policy please visit the following link www.dipp.nic.in