Evaluate the present industrial policy of the Govenment of India with special reference to Make in India and Stand up India

Industrial policy means the set of rules, guidelines, and strategies made by the government to help industries grow and to improve the economy of the country. Every nation needs a good industrial policy because industries not only create wealth but also provide jobs to millions of people. In India, industrial policy has always been a major part of economic planning. From the time of independence in 1947, the government has made many policies to guide industrial development. In the early years, the focus was on building large public sector industries and reducing foreign dependence. Later, in 1991, India moved towards liberalization, privatization, and globalization. Since then, private companies, foreign investment, and global trade have played a major role in shaping our industries. In the present times, the Government of India has introduced several programs to boost industrial growth. Among these, “Make in India” and “Stand Up India” are two of the most important initiatives. They show the government’s commitment to creating jobs, encouraging entrepreneurship, and making India a strong manufacturing hub in the world. the present industrial policy of India, discuss the details of Make in India and Stand Up India, and evaluate their success and challenges.

Evolution of Industrial Policy in India

1.1948 Industrial Policy – First policy after independence, focused on state control of heavy industries and protection of small industries.

2.1956 Industrial Policy – Gave more importance to public sector industries like steel, power, coal, and heavy engineering.

3.1977 and 1980 Policies – Encouraged small industries and tried to improve efficiency.

4.1991 Industrial Policy – A turning point. India adopted liberalization, privatization, and globalization (LPG). Private companies were encouraged, foreign investment was allowed, and industries became more competitive.

5.Present Industrial Policy (since 2014) – Focuses on manufacturing growth, job creation, skill development, start-ups, and encouraging women and marginalized groups in business.

Present Industrial Policy of the Government of India

Today, India’s industrial policy is not in the form of a single large document like in the past. Instead, it is seen through different schemes, programs, and reforms introduced by the government. The key features of the present policy are:

• Encouraging Manufacturing: The government wants manufacturing to contribute 25% of GDP. Currently, it is about 16–17%.
• Attracting Foreign Investment: Through reforms in FDI (Foreign Direct Investment), India has become one of the top destinations for global investors.
• Ease of Doing Business: Simplifying rules, digital approvals, and reducing paperwork.
• Promoting Startups and Innovation: Through the Startup India program, MSMEs (Micro, Small, Medium Enterprises) support, and digital economy initiatives.
• Inclusive Growth: Programs like Stand Up India focus on women, SC, and ST entrepreneurs.
• Green and Sustainable Growth: Encouraging renewable energy, electric vehicles, and eco-friendly industries.

Among these policies, Make in India and Stand Up India are the flagships.

Make in India: A Flagship Industrial Initiative
Introduction

Launched in September 2014, Make in India is one of the most ambitious programs of the Government of India. Its main aim is to transform India into a global manufacturing hub and attract investments from both domestic and international companies.

Objectives

1.To increase the share of manufacturing in GDP to 25%.

2.To create millions of new jobs, especially for the youth.

3.To attract foreign investment and technology.

4.To improve ease of doing business and reduce red tape.

5.To boost exports and reduce dependence on imports.

Focus Sectors

The government identified 25 sectors such as automobiles, electronics, defense, textiles, chemicals, food processing, IT, space, railways, and renewable energy.

Achievements

• FDI Growth: India became one of the top FDI destinations in the world. Sectors like telecom, defense, and retail received large investments.
• Job Creation: Millions of jobs were generated directly and indirectly. For example, in the automobile and mobile manufacturing sectors.
• Global Recognition: India improved its rank in the Ease of Doing Business Index, moving from 142 (2014) to 63 (2020).
• Manufacturing Hubs: Mobile phone manufacturing in India has grown rapidly. Companies like Apple, Samsung, and Xiaomi are assembling in India.
• Infrastructure Development: Industrial corridors, smart cities, and logistics parks are being developed.

Challenges

• Manufacturing share in GDP is still below target (around 16%).
• Job creation is slower compared to the expectations.
• Small industries still face credit problems and tough competition.
• Global economic slowdowns and COVID-19 affected progress.

Stand Up India: Promoting Inclusive Entrepreneurship

Introduction

Launched in April 2016, Stand Up India is another important program of the present industrial policy. It focuses on promoting entrepreneurship among women and SC/ST communities.

Objectives

1.To provide loans between ₹10 lakh and ₹1 crore for starting new enterprises.

2.To ensure that at least one SC/ST borrower and one woman borrower is supported by every bank branch.

3.To promote job creation through entrepreneurship rather than just job seeking.

4.To reduce social and economic inequalities.

Achievements

• Thousands of entrepreneurs from weaker sections have received loans.
• Women have shown great interest in using this scheme for starting businesses in retail, manufacturing, and services.
• It has helped in promoting financial inclusion and confidence among marginalized groups.

Challenges

• Many potential entrepreneurs lack awareness of the scheme.
• Fear of repayment and lack of collateral are problems.
• Bureaucratic delays in some banks discourage applicants.

Evaluation of Present Industrial Policy with Special Reference to Make in India and Stand Up India

Positive Aspects

1.Boost to Manufacturing: Make in India has created a strong base in electronics, defense, and automobiles.

2.Job Opportunities: Both programs have contributed to direct and indirect job creation.

3.Global Image: India is now seen as a rising power in manufacturing and innovation.

4.Inclusive Growth: Stand Up India has given marginalized groups a chance to participate in economic growth.

5.Infrastructure Development: Industrial corridors, digital reforms, and transport infrastructure are being improved.

6.Start-up Culture: The focus on innovation has made India the 3rd largest start-up ecosystem in the world.

Limitations

1.Manufacturing Growth Below Target: The goal of 25% share in GDP is still not achieved.

2.Unequal Benefits: Large industries have benefitted more than small ones.

3.Employment Gap: The rate of job creation has not matched the expectations of India’s growing youth population.

4.Financial Barriers: Stand Up India beneficiaries often face difficulties in accessing loans and support.

5.Global Factors: Trade wars, COVID-19 pandemic, and global recession have slowed down industrial growth.

Suggestions for Improvement

1.Strengthen MSMEs: Provide better credit, technology, and marketing support to small industries.

2.Skill Development: Train youth in modern manufacturing skills.

3.Simplify Rules: Reduce unnecessary approvals and make compliance easy.

4.Promote Green Industries: Encourage renewable energy, waste management, and electric vehicles.

5.Awareness Campaigns: Spread information about Stand Up India and other schemes.

6.Global Partnerships: Strengthen ties with international companies for technology transfer and exports.

The present industrial policy of the Government of India shows a clear shift towards creating a modern, competitive, and inclusive industrial economy. Make in India has brought India into the global spotlight as a manufacturing destination, while Stand Up India has promoted inclusive entrepreneurship by empowering women and weaker sections.

However, challenges like low manufacturing share in GDP, slower job creation, and financial barriers for small entrepreneurs remain. To overcome these, the government must strengthen MSMEs, improve ease of doing business further, and ensure equal opportunities for all sections of society.

If implemented effectively, these policies can truly transform India into a global industrial power while also ensuring social justice and economic equality.