Merchandise Marks Act, 1958 and the Designs Act, 2000 and their associated rules, and the
Boilers Act, 1923.
Relevant Website: www.dipp.nic.in
Industrial policy of the government seeks to maintain a sustained growth in productivity;to
enhance gainful employment;to achieve optimal utilisation of human resources; to attain
international competitiveness; and to transform India into a major partner and player in the
global arena. Specific steps were taken to boost it further. Industrial licensing has been abolished
for most of the industries except for those related to security, strategic and environmental
concerns. These are (i) electronic aerospace and defence equipment; (ii) industrial explosives
including detonating fuses, safety fuses, gunpowder, cellulose and matches; (iii) specified
hazardous chemicals i.e., hydrocyanic acid and its derivatives; phosgene and its derivatives and
isocyanates and disocyanates of hydrocarbon, not elsewhere specified (example methyl
isocyanate); and (iv) cigars and cigarettes of tobacco and manufactured tobacco substitutes.
Subsequent to the notification of Arms Rules, 2016 “items configured for Military use” are
under the purview of Ministry of Home Affairs. Department of Industrial Policy and Promotion
(DIPP) has been delegated power for grant of manufacturing license in respect of the category of
arms and ammunition and defence items. Presently no item is reserved for exclusive manufacture
by MSE Sector. The number of industries reserved for public sector has also been reduced. At
present, only atomic energy and railway operations other than construction, operation and
maintenance sectors are reserved for public sector. Industries not covered under compulsory
licencing and not reserved for public sector are required to file an Industrial Entrepreneurs’
Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), DIPP. There is a
paradigm shift in procedural changes, since 2014. A number of initiatives line National
Manufacturing Policy, Make in India, Ease of Doing Business and National Intellectual Property
Rights policy, etc. have been put in place.
National Manufacturing Policy
In order to bring about a quantitative and qualitative change and to provide necessary
impetus to the manufacturing sector, the National Manufacturing Policy (NMP) was notified
with the objective of enhancing the share of manufacturing in GDP to 25 per cent and creating
100 million jobs over a decade or so. The Policy is based on the principle of industrial growth in
partnership with the states. The policy envisages that central government will create the enabling
policy frame work, provide incentives for infrastructure development on a Public Private
Partnership (PPP) basis through appropriate financing instruments, and state governments will be
encouraged to adopt the instrumentalities provided in it.
National Investment and Manufacturing Zones (NIMZs) are an important instrumentality of
the Policy. These zones have been conceived as large integrated industrial townships with state-
of-the-art infrastructure; land use on the basis of zoning; clean and energy efficient technology;
necessary social infrastructure; skill development facilities, etc., to provide a conducive
environment for manufacturing industries.
The objective of the National Plan for Manufacturing Clusters is to bring about convergence
in the multiple models of development of industrial clusters by the central and state governments