Chapter-11 : Industry
Short Notes or Revision Notes
GIST of India Year Book 2024
Department for Promotion of Industry and Internal Trade (DPIIT)
Established: 1995 (reconstituted in 2000)
Function: Oversees industrial development, e-commerce, internal trade, startup recognition.
Key Areas:
- Infrastructure and Logistics:
- PM GatiShakti National Master Plan (2021): Integrates infrastructure planning for seamless connectivity using GIS technology.
- National Logistics Policy (2022): Focuses on efficiency, regulatory frameworks, and technology adoption in logistics.
- Logistics Ease Across Different States (LEADS): Index assessing state logistics ecosystems and identifying improvement areas.
- Unified Logistics Interface Platform (ULIP): Simplifies logistics processes and reduces costs.
- Project Monitoring Group (PMG): Merged with DPIIT in 2019 to fast-track large projects.
- Foreign Investment and Promotion:
- Formulates FDI policies and simplifies approval processes.
- Make in India (2014): Promotes investment, innovation, and infrastructure for global manufacturing and design hub.
- Invest India: Joint venture facilitating investment and supporting investors throughout the lifecycle.
- One District One Product (ODOP): Focuses on economic growth and entrepreneurship by identifying unique district potential.
- Production Linked Incentive (PLI) Scheme: Offers incentives for 14 key sectors to boost manufacturing and global competitiveness.
- India Industrial Land Bank: Provides a database of industrial areas with infrastructure and connectivity.
- Startup Ecosystem and Industrial Development:
- Startup India (2016): Promotes entrepreneurship through simplification, funding, and industry-academia partnerships (over 99,000 startups recognized).
- Intellectual Property Rights (IPR): Administers IPR laws and supports innovation through policies.
- National Institute of Designs (NIDs): Premier design education and research institutes.
- National Industrial Corridor Programme: Develops greenfield industrial smart cities to enhance industrial output, employment, and infrastructure.
- Industrial Performance (April-July 2023): IIP grew by 4.8%, with positive growth in mining, manufacturing, and electricity sectors.
- Eight Core Industries: All except crude oil recorded positive growth during 2022-23.
- Other Initiatives:
- Ministry of Heavy Industries (MHI): Drives transformation in the automobile sector, promoting electric mobility.
- Central Public Sector Enterprises (CPSEs): MHI administers 36 CPSEs playing a vital role in various sectors (BHEL, HMT, Cement Corporation of India).
- Micro, Small and Medium Enterprises (MSMEs): A dynamic sector contributing significantly to GDP, exports, and employment (over 6 crore enterprises, 27% of GDP, 44% of exports, 11.10 crore employed).
- MSME Samadhaan: Addresses delayed payments through MSMED Act provisions.
- MSME-SAMBANDH and MSME SAMPARK platforms: Facilitate procurement and job opportunities.
Key Indian Industry Sectors
- Textiles:
- Khadi and Village Industries Commission (KVIC) promotes Khadi production and rural employment.
- Government schemes like IPDS, SITP, and PM MITRA support the textile industry, including technical textiles.
- SAMARTH scheme focuses on skill development in the sector.
- Steel:
- India’s steel sector is the world’s second largest, with a 5.5% production increase in 2022.
- National Steel Policy 2017 aims for 300 MT capacity by 2030-31 and increased per capita consumption.
- Production Linked Incentive (PLI) Scheme since 2021 drives specialty steel production.
- Fertilisers:
- Fertilisers Department ensures timely, affordable fertilisers for agriculture.
- New Urea Policy emphasizes energy-efficient production and rationalizes subsidies.
- Neem coating of urea mandated to prevent illegal diversion.
- Chemicals and Petrochemicals:
- Open to 100% FDI, this sector fosters innovation and global competitiveness.
- Pharmaceuticals:
- India’s pharmaceutical industry is the world’s third largest.
- National Pharmaceutical Pricing Policy focuses on affordability of essential medicines.
India’s Mineral Resources
Mineral Legislation and Reforms:
- Focuses on sustainable mining practices, transparency, and exploration.
Major Mineral Resources (in million tonnes):
- Bauxite: Total – 4,958 (Odisha – 41%, Chhattisgarh – 20%, Andhra Pradesh – 12%)
- Chromite: Total – 332 (Odisha – 96%)
- Copper: Total – 1,661 (Rajasthan – 52%, Madhya Pradesh – 23%, Jharkhand – 15%)
- Gold: Total – 544 (Bihar – 43%, Rajasthan – 24%, Karnataka – 20%)
- Iron Ore (Hematite): Total – 24,058 (Odisha – 39%, Jharkhand – 20%, Chhattisgarh – 19%)
- Iron Ore (Magnetite): Total – 11,228 (Karnataka – 69%, Andhra Pradesh – 13%)
- Lead & Zinc: Total – 767 (Rajasthan – 89%)
- Manganese: Total – 504 (Odisha – 34%, Karnataka – 25%, Madhya Pradesh – 12%)
- Nickel: Total – 189 (Odisha – 93%)
- Tungsten: Total – 89 (Karnataka – 41%, Rajasthan – 27%, Andhra Pradesh – 17%)
Key Institutions:
- Geological Survey of India (GSI): Established 1851, conducts resource exploration and hazard studies.
- Indian Bureau of Mines (IBM): Established 1948, regulates mineral resource exploitation and conducts research.