An Overview of the Impact of the Industrial and Business Development Policy 2017 on the Manufacturing Sector
The Industrial and Business Development Policy 2017 was launched by the Government of India to boost the growth of the manufacturing sector and encourage entrepreneurship in the country. The policy aimed to increase the contribution of the manufacturing sector to the Gross Domestic Product (GDP) of the country to 25% by 2025, from the current 17-18%. Let us take a closer look at the impact of this policy on the manufacturing sector.
Boosting Investment in the Manufacturing Industry
Under this policy, the government has taken several measures to enhance investment in the manufacturing industry. It has set up industrial parks and special economic zones (SEZs) to provide land and infrastructure facilities for the setting up of new industries. The policy also provides subsidies and tax benefits to encourage investment in the sector. This has led to a surge of investments in the manufacturing industry, leading to the creation of new jobs and higher economic growth.
Promoting Technological Upgradation in the Industry
To remain competitive in the global market, it is necessary for the manufacturing industry to be up-to-date with the latest technology. The Industrial and Business Development Policy 2017 recognizes this and has taken steps to promote technological upgradation in the industry. The policy provides incentives and subsidies for upgrading the technology used in manufacturing. This has resulted in the use of advanced technology in manufacturing, which has led to increased productivity, efficiency, and quality of output.
Strengthening Domestic Manufacturing Capabilities
The Industrial and Business Development Policy 2017 aims to reduce dependence on imported goods and strengthen the local manufacturing capabilities. The policy emphasizes the use of local raw materials and components in manufacturing to reduce reliance on imports. This has led to the growth of domestic industries, leading to a reduction in the trade deficit. The policy also encourages exports of domestically manufactured goods, leading to the growth of the manufacturing sector and the overall economy.
Conducive Business Environment
The Industrial and Business Development Policy 2017 establishes a conducive business environment for the manufacturing industry. It simplifies regulations and procedures governing the setting up and running of industries, making it easier for entrepreneurs to start and operate businesses. This has led to the growth of small and medium-sized enterprises (SMEs) and the creation of job opportunities.
Conclusion
The Industrial and Business Development Policy 2017 has had a positive impact on the manufacturing sector. It has led to an increase in investment, promoted technological upgradation, strengthened domestic manufacturing capabilities, and established a conducive business environment. These measures have led to the growth of the manufacturing sector and the overall economy. The government must continue to implement measures to sustain the growth of the manufacturing industry and achieve the desired GDP target.
