Commerce Ministry Working On India's Third Industrial Policy, Focus On Make In India: Report

The report said that the new policy proposes an increase in financing sources for the industry and a scheme for promoting Made in India brand

The third industrial policy is being prepared by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, reported PTI. Citing a Source, the report said that the new policy proposes an increase in financing sources for the industry and a scheme for promoting Made-in-India brands. 

It said that a draft named ‘Statement on Industrial Policy 2022 – Make in India for the world’ has been circulated to different ministries for their views and comments.

The source told PTI that the policy is aimed at addressing issues and challenges of the industry through certain policy measures to foster and create an innovative and competitive industrial ecosystem in the country.

It has identified six objectives that include focus on competitiveness and capability, economic integration and moving up the global value chain, promoting India as an attractive investment destination, nurturing innovation and entrepreneurship, and achieving global scale and standards, the report said. 

For the Made in India brands, the scheme could serve as a platform for manufacturers to demonstrate local value addition which can enhance the country's credibility as a source of quality products, the source said. 

The policy proposes various strategies including, setting up a development finance institution to provide finance at competitive rates, using some part of foreign exchange reserves for funding, implementing an integrated investment promotion strategy by involving district, state, national, and international market synergies, providing performance-based loans and incentives for innovation and green growth, leveraging fintech, encouraging MSMEs to choose the corporate bond market, and accepting intellectual property rights as collaterals for loans.

This will be the third industrial policy in the country after the industrial policies of 1956 and 1991, . 

The draft suggests rolling out social security schemes for women workers, inclusion of labour-intensive industries under the production-linked incentive scheme (PLI), incentivising public procurement to promote 'Make in India', creating a national digital grid, developing a robust data protection regime, setting up a technology fund, and creating a task force to continuously identify skill gaps, the report added.