Inter-Ministerial consultation on for New Industrial Policy: DPIIT Secy

NEWDELHI:AnInter-Ministerial consultation is going on for formulation of a new industrial policy, whichwouldaimatbuildingaglobally competitive business environment to increase manufacturing and exports, a Top Government official has said. This would be the third industrial policy after the first in 1956 and the secondin1991.

It is likely to replace the industrial policy of 1991 which was prepared against the backdrop of the balance of paymentcrisis.

“The policy is in the process of Inter-Ministerial consultation…It will focus on newer set of industries that has now come,” Secretary in Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said recently.

The proposed policy is likely to suggestreformstofosterandcreatea globally progressive, innovative and competitiveindustrialecosystem.

The six core objectives of the policy may include focus on competitiveness and capability; economic integration and moving up the global value chain; promoting India as an attractive investment destination in the world; nurturing innovation and entrepreneurship; and circular and sustainable ecosystem.

After the completion of the consultations, the Department is likely to approach the Union Cabinet foritsapproval.

Whenaskedabouttheprogresson revisingWholesalePriceIndex(WPI) base year from 2011-12 to 2017-18, Singh said it is also in the process of inter-ministerialconsultation.

Revising the base year would help in presenting a more realistic picture ofthepricesituationintheCountry.

The Department in June 2021 had issued a draft technical report of a working group, which suggested revising the base year and addition of about 480 items such as medicinal plants, pen drive, lifts, gymnasium equipment, and certain motorcycle enginesinthenewseries.

At present, the index has a total of 697 items, including primary articles (117), fuel and power (16) and manufacturedproducts(564).

WPI revision is a periodic exercise. The current revision process of WPI base year has been undertaken to incorporate the structuralchangesintheeconomy.

Two major indices are used for tracking price movement — Wholesale Price Index (WPI) and ConsumerPriceIndex(CPI).