Chapter Chapter -- 0303pp

Industrial PolicyIndustrial PolicyIndustrial PolicyIndustrial Policy

HISTORICAL BACKGROUNDHISTORICAL BACKGROUNDHISTORICAL BACKGROUNDHISTORICAL BACKGROUND►► During the British rule in India the government policyDuring the British rule in India the government policy►► During the British rule in India, the government policy During the British rule in India, the government policy

towards industry and business was indifferent. The first towards industry and business was indifferent. The first century of British rule saw the decline of nearly all century of British rule saw the decline of nearly all i di i d t i fi di i d t i f t h l i lt h l i lindigenous industries for many reasonsindigenous industries for many reasons——technological, technological, economic, and political.economic, and political.

►► Modern industrial enterprises in India developed only aft er Modern industrial enterprises in India developed only aft er p p yp p y1850. Its earliest manifestations came in the wake of the 1850. Its earliest manifestations came in the wake of the construction of railways, which made it essential to have construction of railways, which made it essential to have modern workshops for repair and maintenance of themodern workshops for repair and maintenance of themodern workshops for repair and maintenance of the modern workshops for repair and maintenance of the rolling stock.rolling stock.

►► The first isolated attempt at officially encouraging the The first isolated attempt at officially encouraging the growth of largegrowth of large--scale industry took place around 1900scale industry took place around 1900growth of largegrowth of large--scale industry took place around 1900.scale industry took place around 1900.

►► The Second World War was a major watershed in the The Second World War was a major watershed in the development of governmentdevelopment of government––business relations in India.business relations in India.

GOVERNMENT’S ROLEGOVERNMENT’S ROLEGOVERNMENT S ROLEGOVERNMENT S ROLE►► Pandit Jawaharlal Nehru laid the foundation of modern India HisPandit Jawaharlal Nehru laid the foundation of modern India His►► Pandit Jawaharlal Nehru laid the foundation of modern India. His Pandit Jawaharlal Nehru laid the foundation of modern India. His

vision and determination have left a lasting impression on vision and determination have left a lasting impression on every facet of national endeavour since independence.every facet of national endeavour since independence.

►► The goals and objectives set out for the nation by Pandit Nehru on The goals and objectives set out for the nation by Pandit Nehru on the eve of independence were as follows:the eve of independence were as follows:

1. Rapid agricultural and industrial development of the country,1. Rapid agricultural and industrial development of the country,1. Rapid agricultural and industrial development of the country,1. Rapid agricultural and industrial development of the country,2. Rapid expansion of opportunities for gainful employment,2. Rapid expansion of opportunities for gainful employment,3. Progressive reduction of social and economic disparities, and3. Progressive reduction of social and economic disparities, and4. Removal of poverty and attainment of self4. Removal of poverty and attainment of self--reliance.reliance.

►► The financial and the balance of payment crises that the nation The financial and the balance of payment crises that the nation faced from the onset of the 1990s compelled the acceptance of faced from the onset of the 1990s compelled the acceptance of deregulation reduced role for public sector making the publicderegulation reduced role for public sector making the publicderegulation, reduced role for public sector, making the public deregulation, reduced role for public sector, making the public sector efficient and surplus generating, and much reliance in sector efficient and surplus generating, and much reliance in general on the private sector for industrial and infrastructure general on the private sector for industrial and infrastructure development.development.

In this context, the following aspects deserve In this context, the following aspects deserve special consideration:special consideration:

• Government role as a promoter caretaker and regulator• Government role as a promoter caretaker and regulator• Government role as a promoter, caretaker, and regulator,• Government role as a promoter, caretaker, and regulator,• Promoting and protecting the small• Promoting and protecting the small--scale sector,scale sector,• Facilitating the revival of sick units,• Facilitating the revival of sick units,

F ili i h d l f I di i f h l b lF ili i h d l f I di i f h l b l• Facilitating the development of Indian companies for the global• Facilitating the development of Indian companies for the globalmarket,market,

• Promoting inflow of foreign capital and technology,• Promoting inflow of foreign capital and technology,• Promoting and maintaining ecological balance,• Promoting and maintaining ecological balance,• Promoting the social role of business,• Promoting the social role of business,• Developing adequate infrastructural facilities for the overall• Developing adequate infrastructural facilities for the overallp g qp g qdevelopment of the economy, anddevelopment of the economy, and

•• Formulating and operating industrial policies conducive to balance Formulating and operating industrial policies conducive to balance industrial and economic growth.industrial and economic growth.gg

MEANING AND OBJECTIVES OF INDUSTRIAL MEANING AND OBJECTIVES OF INDUSTRIAL POLICIESPOLICIES

►►Meaning: Meaning: Industrial policy means rules regulationsIndustrial policy means rules regulationsIndustrial policy means rules, regulations, Industrial policy means rules, regulations,

principles, policies, and procedures laid down by principles, policies, and procedures laid down by government for regulating developing andgovernment for regulating developing andgovernment for regulating, developing, and government for regulating, developing, and controlling industrial undertakings in the country.controlling industrial undertakings in the country.

ObjectivesObjectivesObjectivesObjectivesIndustrial policy statements have been announced from 1948 onwards Some of theIndustrial policy statements have been announced from 1948 onwards Some of theIndustrial policy statements have been announced from 1948 onwards, Some of theIndustrial policy statements have been announced from 1948 onwards, Some of theimportant objectives can be identified as follows:important objectives can be identified as follows:

• Achieving a socialistic pattern of society,• Achieving a socialistic pattern of society,P ti d t ti f iP ti d t ti f i• Preventing undue concentration of economic power,• Preventing undue concentration of economic power,

• Achieving industrial development,• Achieving industrial development,• Achieving economic growth,• Achieving economic growth,• Reducing disparities in regional development,• Reducing disparities in regional development,

D l i h d it l d i d tD l i h d it l d i d t• Developing heavy and capital goods industry,• Developing heavy and capital goods industry,• Providing opportunities for gainful employment,• Providing opportunities for gainful employment,• Expanding the public sector for achieving socialism,• Expanding the public sector for achieving socialism,• Achieving faster economic growth,• Achieving faster economic growth,

A hi i lfA hi i lf t i dt i d• Achieving a self• Achieving a self--sustained economy,sustained economy,• Alleviating poverty,• Alleviating poverty,• Protecting and developing a healthy small• Protecting and developing a healthy small--scale sector,scale sector,• Building up a large and growing cooperative sector,• Building up a large and growing cooperative sector,

U d ti t h l d d i ti f i d t dU d ti t h l d d i ti f i d t d• Updating technology and modernisation of industry, and• Updating technology and modernisation of industry, and• Liberalisation and globalisation of economy.• Liberalisation and globalisation of economy.

INDUSTRIAL POLICIESINDUSTRIAL POLICIESINDUSTRIAL POLICIESINDUSTRIAL POLICIES

• Industrial Policy Resolution of 1948.• Industrial Policy Resolution of 1948.• Industrial Policy Resolution of 1956• Industrial Policy Resolution of 1956• Industrial Policy Resolution of 1956.• Industrial Policy Resolution of 1956.• Industrial Policy Statement of 1973.• Industrial Policy Statement of 1973.• Industrial Policy Statement of 1977.• Industrial Policy Statement of 1977.• Industrial Policy Statement of 1980• Industrial Policy Statement of 1980• Industrial Policy Statement of 1980.• Industrial Policy Statement of 1980.• The New Industrial Policy of 1991.• The New Industrial Policy of 1991.

Industrial Policy Resolution of 1948Industrial Policy Resolution of 1948Industrial Policy Resolution of 1948Industrial Policy Resolution of 1948

The Government of India announced its fi rst Industrial Policy Resolution on AprilThe Government of India announced its fi rst Industrial Policy Resolution on AprilThe Government of India announced its fi rst Industrial Policy Resolution on April The Government of India announced its fi rst Industrial Policy Resolution on April 6, 1948. The policy resolution laid stress on the role of the state in the 6, 1948. The policy resolution laid stress on the role of the state in the development of industry. The industrial activities were divided into four broad development of industry. The industrial activities were divided into four broad areas:areas:

1.1. Items under the central government controlItems under the central government control——arms and ammunition production arms and ammunition production and control of atomic energy, ownership and control of railway transport, and and control of atomic energy, ownership and control of railway transport, and others;others;others;others;

2. Items under the state government control2. Items under the state government control——coal, iron and steel, aircraft coal, iron and steel, aircraft manufacture, shipbuilding, manufacture of telephones, telegraphs, and manufacture, shipbuilding, manufacture of telephones, telegraphs, and

i li lwireless apparatus;wireless apparatus;

3. Items of basic importance planned and regulated by the Central government3. Items of basic importance planned and regulated by the Central government——salt automobiles tractors heavy machinery fertiliser cement sugar papersalt automobiles tractors heavy machinery fertiliser cement sugar papersalt, automobiles, tractors, heavy machinery, fertiliser, cement, sugar, paper, salt, automobiles, tractors, heavy machinery, fertiliser, cement, sugar, paper, and so on; andand so on; and

4. Items for the private sector4. Items for the private sector——all other items left to the private sector.all other items left to the private sector.pp pp

Industrial Policy Resolution of 1956Industrial Policy Resolution of 1956Industrial Policy Resolution of 1956Industrial Policy Resolution of 1956

The second Industrial Policy Resolution was announced on April 30The second Industrial Policy Resolution was announced on April 30The second Industrial Policy Resolution was announced on April 30,The second Industrial Policy Resolution was announced on April 30,1956. The basic objectives of the policy included the following:1956. The basic objectives of the policy included the following:

1 S di h f i d i li i i I di1 S di h f i d i li i i I di1. Speeding up the process of industrialisation in India,1. Speeding up the process of industrialisation in India,2. Developing heavy and capital goods industries,2. Developing heavy and capital goods industries,3. Expanding an effective public sector, 3. Expanding an effective public sector, 4. Accelerating the rate of economic growth,4. Accelerating the rate of economic growth,5. Building up a large and growing cooperative sector,5. Building up a large and growing cooperative sector,6. Encouraging private sector industries,6. Encouraging private sector industries,g g p ,g g p ,7. Preventing private monopolies,7. Preventing private monopolies,8. Developing small8. Developing small--scale, village, and cottage industries,scale, village, and cottage industries,9 Achieving balanced economic development9 Achieving balanced economic development9. Achieving balanced economic development,9. Achieving balanced economic development,10. Participation of workers in management, and10. Participation of workers in management, and11. Maintenance of industrial peace.11. Maintenance of industrial peace.

Industrial Policy Statement of 1973Industrial Policy Statement of 1973Industrial Policy Statement of 1973Industrial Policy Statement of 1973

An industrial policy statement was made in a press note on FebruaryAn industrial policy statement was made in a press note on FebruaryAn industrial policy statement was made in a press note on FebruaryAn industrial policy statement was made in a press note on February2, 1973. The main features of Industrial Policy Statement of2, 1973. The main features of Industrial Policy Statement of1973 were as follows:1973 were as follows:

1.1. The statement declared that the state would be directly responsible for The statement declared that the state would be directly responsible for the future development of industries.the future development of industries.

2 Th l f bli t f th t d i tt i i i li ti2 Th l f bli t f th t d i tt i i i li ti2. The role of public sector was further stressed in attaining a socialistic 2. The role of public sector was further stressed in attaining a socialistic pattern of society.pattern of society.

3. As an initiative towards the development of joint sector units, they 3. As an initiative towards the development of joint sector units, they were supposed to function under the direction of the governmentwere supposed to function under the direction of the governmentwere supposed to function under the direction of the government.were supposed to function under the direction of the government.

4. Foreign investment was allowed only in specific industries. 5. Small4. Foreign investment was allowed only in specific industries. 5. Small--scale and cooperative sectors were assigned a special role to play. scale and cooperative sectors were assigned a special role to play. Small and medium sectors were given preferential treatmentSmall and medium sectors were given preferential treatmentSmall and medium sectors were given preferential treatment.Small and medium sectors were given preferential treatment.

6. In the area of agricultural produce, cooperative enterprises were 6. In the area of agricultural produce, cooperative enterprises were encouraged.encouraged.

Industrial Policy Statement of 1977Industrial Policy Statement of 1977Industrial Policy Statement of 1977Industrial Policy Statement of 1977►► The Janta Party came to power in March 1977 The Janta Party government presented to ParliamentThe Janta Party came to power in March 1977 The Janta Party government presented to Parliament►► The Janta Party came to power in March 1977. The Janta Party government presented to Parliament The Janta Party came to power in March 1977. The Janta Party government presented to Parliament

an industrial policy on December 23, 1977. The major objectives set in the policy were as follows:an industrial policy on December 23, 1977. The major objectives set in the policy were as follows:

1. Preventing of monopoly and concentration of economic power,1. Preventing of monopoly and concentration of economic power,2. Maximising production of consumer goods, and2. Maximising production of consumer goods, and2. Maximising production of consumer goods, and2. Maximising production of consumer goods, and3. Making industry responsive to social needs.3. Making industry responsive to social needs.

►► The basic elements of the Janta government’s industrial policy were as follows:The basic elements of the Janta government’s industrial policy were as follows:

1. Development of small1. Development of small--scale industries, cottage industries, tiny sector units, village and householdscale industries, cottage industries, tiny sector units, village and householdindustries,industries,

2. Encouraging the large2. Encouraging the large--scale industrial units for meeting the minimum needs of the population,scale industrial units for meeting the minimum needs of the population,3. Reversing the process of growth of large industries which grew with the help of funds from public3. Reversing the process of growth of large industries which grew with the help of funds from public3. Reversing the process of growth of large industries which grew with the help of funds from public3. Reversing the process of growth of large industries which grew with the help of funds from public

financial institutions,financial institutions,4. Public sector was to be used as a producer and supplier of essential consumer goods,4. Public sector was to be used as a producer and supplier of essential consumer goods,5. Import of technology only in high5. Import of technology only in high--priority areas, andpriority areas, and6. Restricted foreign collaboration6. Restricted foreign collaboration——the ownership and control were to remain in Indian hands.the ownership and control were to remain in Indian hands.6. Restricted foreign collaboration6. Restricted foreign collaboration the ownership and control were to remain in Indian hands.the ownership and control were to remain in Indian hands.

New Industrial Policy Statement of New Industrial Policy Statement of 19801980

The Congress came to power again in 1980 The Union Minister of StateThe Congress came to power again in 1980 The Union Minister of StateThe Congress came to power again in 1980. The Union Minister of StateThe Congress came to power again in 1980. The Union Minister of Stateannounced the new industrial policy on July 23, 1980. The socioannounced the new industrial policy on July 23, 1980. The socio--economiceconomicobjectives of the 1980 Industrial Policy were as given below:objectives of the 1980 Industrial Policy were as given below:

1. Optimum utilisation of the installed capacity,1. Optimum utilisation of the installed capacity,2. Higher employment generation,2. Higher employment generation,3 Achieving higher productivity and maximum production3 Achieving higher productivity and maximum production3. Achieving higher productivity and maximum production,3. Achieving higher productivity and maximum production,4. Development of industrially backward areas,4. Development of industrially backward areas,5. Promotion of agro5. Promotion of agro--based industries,based industries,6. Faster promotion of export6. Faster promotion of export--oriented and importoriented and import--substitution industries,substitution industries,6. Faster promotion of export6. Faster promotion of export oriented and importoriented and import substitution industries,substitution industries,7. Consumer protection against high prices and bad quality,7. Consumer protection against high prices and bad quality,8. Promoting economic federalism with spread of investment in rural as well as8. Promoting economic federalism with spread of investment in rural as well as

urban areas, andurban areas, and,,9. Revival of the economy by overcoming infrastructural gaps.9. Revival of the economy by overcoming infrastructural gaps.

The following policy measures were specified The following policy measures were specified to achieve these objectivesto achieve these objectives

1. Promoting the process of rural industrialisation,1. Promoting the process of rural industrialisation,2. Removing regional imbalances,2. Removing regional imbalances,2. Removing regional imbalances,2. Removing regional imbalances,3. Regulating the excess capacity in the private sector,3. Regulating the excess capacity in the private sector,4. Efficient operational management of the public sector,4. Efficient operational management of the public sector,5. Developing small5. Developing small--scale sector by increasing the limit of scale sector by increasing the limit of

investment,investment,6 Automatic expansion in large6 Automatic expansion in large--scale industrial units andscale industrial units and6. Automatic expansion in large6. Automatic expansion in large scale industrial units, andscale industrial units, and7. Dealing with industrial sickness effectively.7. Dealing with industrial sickness effectively.

New Industrial Policy of 1991New Industrial Policy of 1991New Industrial Policy of 1991New Industrial Policy of 1991►► As a part of the liberalisation a new industrial policy was announcedAs a part of the liberalisation a new industrial policy was announced►► As a part of the liberalisation, a new industrial policy was announced As a part of the liberalisation, a new industrial policy was announced

by the Government of India in two parts, on July 24, 1991 and August by the Government of India in two parts, on July 24, 1991 and August 6, 1991, respectively. Some of the major aspects of the industrial 6, 1991, respectively. Some of the major aspects of the industrial policy were as follows:policy were as follows:po cy e e as o o spo cy e e as o o s

►► Automatic clearance introduced for import of capital goodsAutomatic clearance introduced for import of capital goods►► Existing and new industrial units provided with broadExisting and new industrial units provided with broad--banding facilitybanding facility►► PrePre--eminent role of public sector in eight core areaseminent role of public sector in eight core areas►► PrePre eminent role of public sector in eight core areaseminent role of public sector in eight core areas►► Part of government’s shareholding in public sector is proposed to be Part of government’s shareholding in public sector is proposed to be

disinvested,disinvested,►► Chronic lossChronic loss--making public sector units to be referred to the Board ofmaking public sector units to be referred to the Board of►► Chronic lossChronic loss making public sector units to be referred to the Board of making public sector units to be referred to the Board of

Industrial and Financial Reconstruction (BIFR)Industrial and Financial Reconstruction (BIFR)►► A simplified procedure for new projects was introduced to manufacture A simplified procedure for new projects was introduced to manufacture

goods not covered by compulsory licensing.goods not covered by compulsory licensing.g y p y gg y p y g►► Decisive contribution was expected from foreign investmentDecisive contribution was expected from foreign investment►► Industrial policy for the smallIndustrial policy for the small--scale sector announced on August 6, scale sector announced on August 6,

19911991

Objectives:Objectives:The objectives of the 1991 policy includedThe objectives of the 1991 policy included

1 Reducing or minimising the bureaucratic control of the1 Reducing or minimising the bureaucratic control of the1. Reducing or minimising the bureaucratic control of the 1. Reducing or minimising the bureaucratic control of the industrial economy of India,industrial economy of India,

2. Liberalisation of industrial and economic activities for 2. Liberalisation of industrial and economic activities for integrating the Indian economy with the world economy,integrating the Indian economy with the world economy,

3. Removing restrictions on foreign direct investment,3. Removing restrictions on foreign direct investment,4 Freeing the domestic entrepreneur from excessive MRTP4 Freeing the domestic entrepreneur from excessive MRTP4. Freeing the domestic entrepreneur from excessive MRTP 4. Freeing the domestic entrepreneur from excessive MRTP

restrictions, andrestrictions, and5. Streamlining the role of public sector enterprises.5. Streamlining the role of public sector enterprises.

Among the areas covered, the most important ones Among the areas covered, the most important ones are:are:

1. Industrial licensing,1. Industrial licensing,2. Foreign investment,2. Foreign investment,3. Technology transfer and import of foreign technology,3. Technology transfer and import of foreign technology,4. Public sector policy,4. Public sector policy,5. Policy relating to MRTP Act, and5. Policy relating to MRTP Act, and6. An exclusive small6. An exclusive small--sector policy.sector policy.

THE NEW SMALLTHE NEW SMALL--SCALE SECTOR POLICY OF SCALE SECTOR POLICY OF 19911991

►►The new policy on tiny, small, and village The new policy on tiny, small, and village enterprises envisages almost a Uenterprises envisages almost a U--turn in policy turn in policy stimulants and structure of micro and small stimulants and structure of micro and small enterprises in the country.enterprises in the country.

ObjectivesObjectivesThe primary objective of the smallThe primary objective of the small--scale industrial policy scale industrial policy during the 1990s would be to impart more vitality and during the 1990s would be to impart more vitality and growth impetus to the sector,growth impetus to the sector,

The other objectives are as follows:The other objectives are as follows:1. To decentralise and delicense the sector,1. To decentralise and delicense the sector,2 To deregulate and debureaucratise the sector2 To deregulate and debureaucratise the sector2. To deregulate and debureaucratise the sector,2. To deregulate and debureaucratise the sector,3. To review all statutes, regulations, and procedures and effect suitable modifications3. To review all statutes, regulations, and procedures and effect suitable modifications

wherever necessary,wherever necessary,4. To promote small enterprise, especially industries in the tiny sector,4. To promote small enterprise, especially industries in the tiny sector,p p , p y y ,p p , p y y ,5. To motivate small and sound entrepreneurs to set up new green enterprises in the5. To motivate small and sound entrepreneurs to set up new green enterprises in the

country,country,6. To involve traditional and reputed voluntary organisations in the intensive development 6. To involve traditional and reputed voluntary organisations in the intensive development

of Khadi and Village Industrial Commission (KVIC) through area approachof Khadi and Village Industrial Commission (KVIC) through area approachof Khadi and Village Industrial Commission (KVIC) through area approach,of Khadi and Village Industrial Commission (KVIC) through area approach,7. To maintain a sustained growth in productivity and attain competitiveness in the market7. To maintain a sustained growth in productivity and attain competitiveness in the market

economy, especially in the international markets,economy, especially in the international markets,8. To industrialise the backward areas of the country,8. To industrialise the backward areas of the country,yy9. To accelerate the process of development of modern small enterprises,9. To accelerate the process of development of modern small enterprises,

Salient Features of New PolicySalient Features of New PolicySalient Features of New PolicySalient Features of New Policy1. Equity participation up to 24 per cent by other industrial undertakings (including foreign companies).1. Equity participation up to 24 per cent by other industrial undertakings (including foreign companies).2. Legislation to limit financial liability of new or non2. Legislation to limit financial liability of new or non--active partneractive partner--entrepreneurs to the capital invested.entrepreneurs to the capital invested.3 Hik i i li i f i f R 2 l kh R 5 l kh3 Hik i i li i f i f R 2 l kh R 5 l kh3. Hike in investment limit for tiny sector, up from Rs 2 lakh to Rs 5 lakh.3. Hike in investment limit for tiny sector, up from Rs 2 lakh to Rs 5 lakh.4. Services sector to be recognised as tiny sector.4. Services sector to be recognised as tiny sector.5. Support from National Equity Fund for projects upto Rs 10 lakh.5. Support from National Equity Fund for projects upto Rs 10 lakh.6. Single6. Single--window loans to cover projects up to Rs 20 lakh. Banks too to be involved.window loans to cover projects up to Rs 20 lakh. Banks too to be involved.7. Relaxation of certain provision of labour laws.7. Relaxation of certain provision of labour laws.pp8. Sub8. Sub--contracting Exchanges to be set up by industry associations.contracting Exchanges to be set up by industry associations.9. Easier access to institutional finance.9. Easier access to institutional finance.10. Factoring services through SIDBI to overcome the problem10. Factoring services through SIDBI to overcome the problem--delayed payments. Also, legislation to ensure payment of delayed payments. Also, legislation to ensure payment of

bills.bills.11. Women enterprises redefined.11. Women enterprises redefined.11. Women enterprises redefined.11. Women enterprises redefined.12. Marketing of mass consumption items by National Small Industries Corporation under common brand name.12. Marketing of mass consumption items by National Small Industries Corporation under common brand name.13. Composite loan under the single13. Composite loan under the single--window scheme also to be given by banks.window scheme also to be given by banks.14. Tiny sector to be accorded priority in government purchase programme.14. Tiny sector to be accorded priority in government purchase programme.15. Priority to SSIs and tiny units in allocation of indigenous raw materials.15. Priority to SSIs and tiny units in allocation of indigenous raw materials.16 Promises to deregulate and debureacratise small and tiny sectors16 Promises to deregulate and debureacratise small and tiny sectors16. Promises to deregulate and debureacratise small and tiny sectors.16. Promises to deregulate and debureacratise small and tiny sectors.17. PSUs and NSIC to help market products through consortia approach, both domestically and internationally.17. PSUs and NSIC to help market products through consortia approach, both domestically and internationally.18. Janata Cloth Scheme to he replaced by a new scheme which will provide fund for loom modernisation.18. Janata Cloth Scheme to he replaced by a new scheme which will provide fund for loom modernisation.19. Compulsory quality control for products that pose rise to health and life.19. Compulsory quality control for products that pose rise to health and life.20. Legislation to ensure payment of small20. Legislation to ensure payment of small--scale industries bills.scale industries bills.21. A special monetary agency to be set up for the small21. A special monetary agency to be set up for the small--scale sector’s credit needs.scale sector’s credit needs.22. A new scheme of integrated infrastructure development to be implemented.22. A new scheme of integrated infrastructure development to be implemented.23. A TDC to be set up.23. A TDC to be set up.24. Incentive and services package to be delivered at the district level.24. Incentive and services package to be delivered at the district level.25. An export development centre to be set up.25. An export development centre to be set up.p p pp p p26. KVIC and board to be expanded.26. KVIC and board to be expanded.27. Investment limit of ancillary units and EOU raised to Rs 75 lakh.27. Investment limit of ancillary units and EOU raised to Rs 75 lakh.28. Traditional village industries to be given greater thrust.28. Traditional village industries to be given greater thrust.

SmallSmall--scale Industriesscale IndustriesSmallSmall--scale Industriesscale Industries

1. Financial support.1. Financial support.2 Infrastructure facilities2 Infrastructure facilities2. Infrastructure facilities.2. Infrastructure facilities.3. Marketing and exports.3. Marketing and exports.4. Modernisation.4. Modernisation.5 Promotion of entrepreneurship5 Promotion of entrepreneurship5. Promotion of entrepreneurship.5. Promotion of entrepreneurship.6. Simplifi cation of rules and procedures.6. Simplifi cation of rules and procedures.7. Tapping resources.7. Tapping resources.

Tiny SectorTiny SectorTiny SectorTiny Sector

1. Investment.1. Investment.2 Broadening the concept of service sector2 Broadening the concept of service sector2. Broadening the concept of service sector.2. Broadening the concept of service sector.3. Locational.3. Locational.4. Simplification of rules.4. Simplification of rules.

Handloom SectorHandloom SectorHandloom SectorHandloom Sector

1. Project package scheme.1. Project package scheme.2 Welfare packages scheme2 Welfare packages scheme2. Welfare packages scheme.2. Welfare packages scheme.3. Organisation and development scheme.3. Organisation and development scheme.4. NHDC as a nodal agency.4. NHDC as a nodal agency.

Handicraft SectorHandicraft SectorHandicraft SectorHandicraft Sector1 Extending services like supply of raw materials and so on1 Extending services like supply of raw materials and so on1. Extending services like supply of raw materials and so on.1. Extending services like supply of raw materials and so on.2. Market development support and expansion of training facilities.2. Market development support and expansion of training facilities.3. Other village industries.3. Other village industries.4 I i li4 I i li4. Improving quality.4. Improving quality.5. Ensuring better flow of credit from financial institution.5. Ensuring better flow of credit from financial institution.6. Thrust on traditional village industries.6. Thrust on traditional village industries.7. Setting up of functional industries estates.7. Setting up of functional industries estates.8. Upgrading training programmes.8. Upgrading training programmes.9. Coordinating with development programmes.9. Coordinating with development programmes.g p p gg p p g