- Index: IIP vs WPI vs CPI
- Survey: OBICUS vs ASI
- Industrial Licensing
- Industries reserved:
- IEM
- Boosting Industrial sector
- Textile related
- PMEGP
- PSU: delegation
- Misc facts
- Measures to boost MSME sector
- CHALLENGES & OUTLOOK
- Mock Questions
Index: IIP vs WPI vs CPI
What is IIP, already discussed in earlier article click me.
IIP |
WPI |
CPI |
|
What? | Index of Industrial Production | Wholesale price index | Consumer price index |
Who calculates? | Central Statistical Organization (CSO) | Economic advisor | Central Statistical Organization (CSO) |
Under Which Ministry? | Statistics & Programme Implementation | Commerce | Statistics & Programme Implementation |
Base year? | 2004 | 2004 | 2010 |
Items? | 682 items clubbed in 399 groups: 1 in Mining, 1 in Electricity and 397 in Manufacturing | 676 | 200 |
Categories |
Based on sector:
Based on use:
|
|
|
Measures the increase/decrease in | Production | Price | Price |
Survey: OBICUS vs ASI
What |
OBICUS |
ASI |
Full form | Order Books, Inventories & Capacity Utilization Survey | Annual survey of industries |
Who releases? | RBI | NSSO under Ministry of Statistics & Programme Implementation |
Timeframe | Quarterly | Annually |
Use? | Assessing the consumption and investment demand outlook. | organized manufacturing sector’s growth, composition, structure |
Who is surveyed? | Approximately 2,500 public and private limited companies in the manufacturing sector. | Entire manufacturing sector employing 10 or more workers. |
Industrial Licensing
As per the Industries Development Regulation Act 1951, you need to get license to operate in following industries
- Distillation and brewing of alcoholic drinks.
- Cigars and cigarettes of tobacco and manufactured tobacco substitutes;
- Electronic Aerospace and defense equipment: all types;
- Industrial explosives, including detonating fuses, safety fuses, gun powder, nitrocellulose and matches;
- Hazardous chemicals;
- Hydrocyanic acid and its derivatives
- Phosgene and its derivatives
- Isocyanates and di-isocyanates of hydrocarbon, not elsewhere specified (example: Methyl Isocyanate).
These five industries require industrial licensing because of security, strategic and environmental concerns.
- Example of De-licensed industries are: cement, paint, photo goods, Paper industry, air conditioners, bicycle, food processing etc.
- Although the entrepreneur does need to file an IEM (Industrial entrepreneurās memorandum to the Secretariat for industrial assistance ->> Department of Industrial Policy and Promotion (DIPP)->>Ministry of Commerce and industries.
Letās get some info about those Chemicals
Industries reserved:
For small scale sector | 20 |
For public sector |
|
IEM
- Industrial entrepreneurs memoranda
- Entrepreneurs have to fill these to Dept. of Department of Industrial Policy and Promotion
- Industrial undertakings that are exempted from obtaining an industrial license
- For expanding existing industrial undertaking.
- IEM Provides info. On
- likely investment flows to industry.
- Sectoral preferences of investors,
- perception of entrepreneurs.
Boosting Industrial sector
Govt has done following things
- DMIC
- FDI relaxation
- NMP 2011
- e-Biz Project
DMIC and FDI relaxation already discussed in earlier articles, hence skipping here. Letās check the remaining:
National Manufacturing Policy (NMP) 2011: Objectives
- Increase share of manufacturing in GDP to 25% within a decade.
- create additional 100 million jobs over
- special focus to industries that are employment intensive
- give vocational skill/training to rural youth
- industrial growth in partnership of states
- industrial regulation will be simplified and rationalized
National investment & manufacturing zones (NIMZs)
- provided under National manufacturing policy 2011.
- Out of twelve NIMZs so far announced, eight are along the DMIC.
- Besides, four other NIMZs have been given in-principle approval
- Nagpur in Maharashtra,
- Tumkur in Karnataka,
- Chittoor district AP
- Medak district AP
Manufacturing industry promotion board (MIPB)
- Provided under National manufacturing policy 2011.
- Chairman = Commerce minister.
Circular 1 of 2013
- Since 1991, government had been revising the FDI limits via press notes. But later they consolidated all such press notes and other regulation into one document.
- Ā This document was released as āCircular 1 of 2010.ā
- Govt. updates it every six months.
- Latest is Circular 1 of 2013. Effective from 1st April 2013
- The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, makes policy pronouncements on FDI through Press Notes/ Press Releases
- But these FDI limits come into effect only after RBI notifies them under FEMA Act 2000. (recall capital account convertibility topic under economic survey ch.6 BoP)
IPR initiatives
The Madrid Protocol
- Administered by World Intellectual Property Organisation (WIPO)
- provides for a system for international registration of trade marks.
- Madrid protocol will help Indian companies register their trade-marks in all member countries under this protocol via single application in one language and one time fees in one currency.
Trademark Amendment Act 2010
- Was passed to accede India to Madrid Protocol
I-Mark
- I-Mark= Indian Design Mark
- By Indian design council under DepartmentĀ of Industrial policy and promotion (DIPP) –> Ministry of Commerce and Industries.
- I-Mark is the Indian equivalent of the Japanese G-Mark, the highest quality marking for industrial design in Japan.
Geographical indicators
Already covered in earlier article click me
JK and Hill Areas
Transport Subsidy Scheme | 1971 | For industrialization in hill, remote and inaccessible areas.Provides subsidy on transport cost for transporting raw material and finished products to and from the location. |
Jammu and Kashmir | 2002 | 100% exemption from income tax, central excise (expired in 2012) |
Himachal, Uttarakhand | 2003 | Similar to above but scheme was valid till Jan 2013. |
North East Industrial Development and promotion policy | 2007 | Incentives for new and old units: excise duty exemption, income tax exemption, insurance etc.. |
National Electric Mobility Mission Plan (NEMMP) 2020
- approved by the National Council for Electric Mobility (NCEM)
- for increasing the use of electric vehicle (including hybrid cars) in India. Because theyāre energy efficient and environmentally friendly.
- Government will provide R&D support, subsidies, tax reliefs to automobile industries involved in this segment.
National Council for Electric Mobility
- Apex body for mattres related to electric and hybrid vehicles.
- Chairman= Minister (Heavy Industries & Public Enterprises).
- Members= Ministers from the key Central Ministries/Departments, eminent representatives from the industry and academia.
Textile related
TUFS
- Technology upgradation fund schemeā 1999
- To provides financial support to textile industry (including powerlooms).
- government provides interest subsidy to textile units if they take loans for implementing new technology.
- Not region specific
- Demand driven (just like MNREGA)
Technical Textiles
- Technical textiles are used in aerospace, shipping, sports, agro, defence, medicine etc.
- Scheme and for growth and Development of technical textiles (SGDTT)
Textile research association (TRA) | Under SGDTT, they are centre for excellence for |
|
Geotech |
|
Agrotech |
|
Meditech |
|
Protech |
SITP
- Scheme for integrated textile parks
- Cost cover for common infrastructure (drainage,roads, water supply, telecom lines), buildings etc for textiles industry
Jute
- Known as Golden fiber
- States ranking (in terms of no. of Jute mills): 1) WB, 2) Andhra, 3) Bihar and UP
Jute Technology Mission
- Under Agro ministry (and not under textile ministry)
Jute Geo textile (JGT)
- Rural Development ministry will use it to construct about 1000 km of rural roads
- Indian railways also uses it for track repair and new tracks.
Silk
India produces all 4 commercially known varieties of Silk
- Mulberry
- Tasar
- Eri
- Muga
In Budget 2013, Chindu raised the duty on raw silk from 5% to 15%.
Central silk board
- Central Silk board is a Statutory body under textile ministry. (coir board is also a statutory).
- For developing silk industry in India
- For providing basic seed material
- R&D, training of personnel, monitoring export, prices etc.
SMOI
- Silk mark organization of India
- Silk in India faces unfair competition from man-made substitute like viscose, polyester, nylon etc.
National textile corporation ltd
- Central public sector undertaking under Textile ministry
- Earlier, Government had nationalized certain sick textile mills.
- National textile corp. looks after their affairs, revises the viable mills and shuts down the unviable ones.
Cotton
India is the only country to grow all 4 species of cultivated cotton viz
- Asian (2 species)
- Egyptian (1)
- American Upland (1)
- 2002: Government released BT-cotton seeds for commercial cultivation. BT variety is resistant to cotton insects = farmers need to less insectides.
- for foodgrains, Government operates Minimum support price (MSP) via FCI
- But MSP of Cotton implemented via Cotton Corporation of India (CCI)
PMEGP
- PMās employment generation scheme
- Launched in 2008 by merging
- PMās Rojgar Yojana
- Rural Employment generation program
- To general employment opportunities in both rural + urban areas
- Any individual above 18 years age
- No income ceiling for assistance.
PSU: delegation
1997 | Navratna and Miniratna |
2009 | Maharatna |
- Under these schemes, the profit making central public sector enterprises are given extra powers and freedom.
- Matter falls under Department of Public Enterprises
- Feb 2013: Bharat Heavy Electricals Limited (BHEL) and Gas Authority of India Ltd.(GAIL) were given Maharatna Status.
Misc facts
Following are given directly / mentioned/ hinted in the industries chapter under India 2013 Yearbook, hence important for MCQs. (otherwise there is no end to stupid misc. facts).
Indiaās rank in production
Sponge Iron | 1st |
Jute | 1st |
Tractors | 1st |
Silk | 2nd after China |
Cement | 2ndĀ after China |
Cotton | 2ndĀ after China. Note: Wool is the only natural fiber which India is deficient and has to import it to meet production demand. |
Two wheeler | 2nd after China |
Bicycle | 2nd After China. (Punjab and TN major producers within India.) |
Salt | 3rd (China is 1st, USA is 2nd) |
Nitrogenous fertilizers | |
Crude Steel | 4th |
Foundry | 5th |
- For boilers, BHEL is the largest manufacturer in India
- DDT: Hindustan Insecticides ltd is largest producer of DDT in wor. The only other producer is China.
Refrigerators: DC vs FF
Direct Cool (DC) | Frost Free (FF) |
Cheaper, consumes less energy | More, although price gap is declining between DC and FF given the R&D advancements and competition among companies. |
Direct cool refrigerators use natural convection, resulting in instant cooling capabilities, but that leads to frost build up. Youāve to manually defrost it. | do not require any deicing or defrosting through manual means. It is handled automatically. |
Less | better at maintaining consistent temperatures, and keeping food items fresh for a longer period of time. |
Rural areas=frequent power cuts. Hence villagers prefer direct cool refrigerators. | Preferred by urban junta. |
BEE labelling
- Bureau of energy efficiency under Ministry of Power
- More details already given on: https://mrunal.org/2012/09/econ-bee.html
Batteries: Lead acid vs Dry cell
Lead Acid storage |
Dry cell |
|
|
Gaston PlantƩ (France) | Georges LeclanchƩ (France) |
All lead acid storage batteries are rechargeable. | Usually non-rechargeable- just use and throw. (although rechargeable varieties are also available) |
Lead sulfate and Sulfuric acid |
rechargeable
|
Alkaline batteries in India
- In developed countries, alkaline batteries constitute 90% of primary battery market. While in India only 2%
- while Alkaline is more efficient than Zinc Carbon, but also more expensive.
- For example Duracell (pink bunny ad) is an alkaline battery. While it runs longer but expensive compared to the zinc carbon version of Nippon, everyready and other Chinamade cells.
Foundry clusters
Cluster | Famous for ___ Castings |
Coimbatore, TN | Pumpsets |
Kolhapur, Belgaum | Automobile |
Rajkot | Diesel Engine |
Batala, Jalandhar | Machinary parts and agro implements |
Water treatment plant
|
|
|
|
|
|
Water treatment processes
Biological | Biodegradation via bacteria, fungi, algaea and yeast: to breakdown organic matters. |
Chemical | To remove organic/ inorganic matter that cannot be biodegraded. Done via Precipitation, oxidization, neutralization |
Physical | Sedimentation, clarification |
Air pollution control equipment
Classified into five types
- Settling chambers
- Ventury scrubber
- Ionized scrubber
- Electrostatic precipitator
- Bag filters
Industrial Gears
Industrial Gears are used for two purposes
- Rotation speed: increase / decrease
- Power or torque: increase / decrease
Theyāre used in elevators, kilns, cranes etc.
Gearbox = metal casing in which a train of gears is sealed.
Switchgears
- fuses or circuit breakers etc. to control and protect electrical equipment.
Measures to boost MSME sector
- Public Procurement Policy for Goods= All the central ministries / departments / central public sector undertakings (CPSUs) shall procure a minimum of 20 per cent of their annual value of goods / services required by them from MSEs.
- And out of that, 4 per cent procurement from MSEs owned by SC / ST entrepreneurs
- Govt also provides guarantee cover for loans upto 100 lakh.
- Capital Subsidy Scheme to help them upgrade their technology.
- SIDBI set up the India Microfinance Equity Fund in 2011-12
CHALLENGES & OUTLOOK
Manufacturing
- India is one of the top ten manufacturing countries though its share in total manufacturing value added (MVA) is only about 1.8 per cent. Due to
- low-level technology,
- higher input costs &
- poor quality infrastructure.
- While Indiaās performance is good inĀ labour-intensive sectors such as textiles, wearing apparel & leather products. But Even in these three sectors India’s share was low as compared to China.
- Latest competitive industrial performance index (CIP) compiled by the United Nations Industrial Development Organization (UNIDO), ranks India 42nd out of 118 countries the same as in 2005. China is ranked 5th.
IIP problem
Last year, IIP has been either negative or very low growth because
- Incoming Investment =decreased.
- Corporate sectorās Profit margin= decreased (thanks to inflation)
- Loan / credit = becoming expensive.
- Global economy = not yet fully recovered.
Infra-bottlenecks
- Low output of coal = low thermal power generation= electricity shortages.
- rail, road, & ports projects= not finished in time bound manner.
- therefore crucial to accelerate the output of core sectors & speed up implementation of crucial big ticket projects.
- low level of R&D
- inadequate availability of skilled manpower.
- India has not improved significantly in terms of the ease of doing business & ranks very low in comparison to other industrial nations.
- MSME sector = multiple approval & operational restrictions.
- The process of setting up & exiting business is time consuming & complicated requiring expensive third party assistance.
- Since states have the major role in administering MSME sector. There is need to create uniform rules, processes in all states.
- The policy initiatives taken by the government in the recent months made the business sentiment buoyant & have generated some optimism. but there is room for lot of improvement.
Mock Questions
- Central Statistical organization is responsible for compilation of
- IIP
- CPI
- Both
- None
- Economic advisor under Commerce Ministry, is responsible for compilation of
- IIP
- WPI
- Both
- None
- IIP and CPI fall under the ministry of
- Commerce
- Finance
- MSME
- Statistics and program implementation
- In terms of no. of items, what is the correct sequence (smaller to bigger)?
- IIP, WPI, CPI
- CPI, IIP, WPI
- WPI, CPI, IIP
- None of above
- IIP includes ___ items groups
- 399
- 676
- 200
- 500
- CPI includes ___ items
- 399
- 676
- 200
- 500
- WPI includes ___ items
- 399
- 676
- 200
- 500
- Which of the following is not a category of IIP?
- Mining
- Manufacturing
- Electricity
- Primary articles
- What is common between WPI and IIP
- Both have same no. of items
- both are compiled under same ministry
- both have same base year
- none of above
- What is common between CPI and IIP
- Both have same no. of items
- both are compiled under same ministry
- both have same base year
- none of above
- OBICUS is compiled by
- Environment ministry
- Finance Ministry
- SEBI
- RBI
- Annual survey of Industries is compiled by Ministry of
- Finance
- Commerce
- MSME
- Statistics and program implementation
- Correct Statement about Phosgene
- One has to obtain Industrial license to produce Phosgene
- It can be used as a chemical weapon
- Both
- None
- Which of the following element is present in Phosgene?
- Phosphorus
- Potassium
- Chlorine
- Zinc
- Industrial license is necessary for
- Brewing Alcoholic drinks
- Electronic aerospace equipment
- Matches
- all of above
- What is common between Methyl Isocyanate and Phosgene?
- Both are used in pesticide industry
- both require industrial licensing
- both are extremely poisonous gases
- all of above
- Phosgene is used for making
- matchsticks
- film reels
- pesticides
- perfumes
- In India which of the following areas are reserved for Public sector only
- Defense, Railways
- Nuclear Energy, Railways, Defense
- Defence, Nuclear Energy
- Nuclear Energy, Railways
- Correct statements about Industrial entrepreneurs memoranda (IEM)
- The Entrepreneurs have to file these to MSME Ministry
- Entrepreneurs donot need to file IEM for industries that require industrial license.
- Both
- None
- By 2022, National Mfg. Policy 2011 aims to
- create additional 300 million jobs
- increase share of manufacturing sector in GDP to atleast 25%
- Both
- None
- Who is the chairman of Manufacturing industry promotion board?
- FM
- PM
- Minister of Commerce and industries
- Minister of MSME
- E-biz project was designed by
- TCS
- Infosys
- WIPRO
- Satyam
- E-Biz project falls under the ministry of
- MSME
- Finance
- Commerce
- Heavy industries
- Invest India is a joint venture between ___ and ___
- ASSOCHAM and FICCI
- Dept of economic affairs and FICCI
- Dept of MSME and ASSOCHAM
- Department of Industrial Policy & Promotion & FICCI
- Which department is responsible for FDI policy announcements?
- Dept of economic affairs
- Department of Financial Services
- Dept of Industrial Policy and Promotion
- Department of Expenditure
- Under FEMA Act, who is empowered to notify the FDI limits?
- SEBI
- Finance Ministry
- Commerce Ministry
- RBI
- Madrid protocol is related to
- bilateral trade disputes
- climate change and biodiversity
- Trademarks
- Chemical weapons
- Madrid Protocol falls under
- WTO
- UN
- WIPO
- ILO
- Minister of ____ is the chairman of National Council for Electric Mobility.
- Environment and forest
- Commerce and industries
- fiance
- Heavy industries and public enterprises
- Who directly benefits from Technology upgradation fund scheme?
- Steel and Cement industry
- Heavy industries
- Textile sector
- Automobile sector
- NITRA and SITRA are associations related to
- automobiles
- agriculture
- textile
- none of above
- Jute Geo Textiles can be used in contruction of
- Railway tracks
- Rural Roads
- Both
- None
- I-mark is associated with
- IT industries
- infrastructure projects
- Industrial designs
- None of above
- Correct Statements
- India produces all 4 commercially known varieties of silk
- India is the only country to grow all 5 species of cultivated cotton
- both
- none
- which of the following cotton variety is grown in India?
- Asian
- Egyptian
- American Upland
- All of Above
- Correct statements on PMās employment generation scheme
- applicable to only rural areas
- administered by PMO
- Both
- none
- Two CPSE that were added in the Maharatna category recently
- MTNL and BHEL
- BHEL and GAIL
- NALCO and BHEL
- None of above
- China enjoys first position in the production of
- Jute
- Tractors
- Sponge Iron
- Cotton
- BEE Labelling falls under the ministry of
- Power
- environment and forest
- commerce
- renewable energy
- Which of the following battery is rechargable
- Lead Acid
- Li-Ion
- NiCd
- All of above
- Alkaline batteries use
- Zinc-Carbon
- Zinc Manganese Dioxide
- Lead sulfate and Sulfuric Acid
- None of above
- Ventury scrubber and eletrostatic precipitator are examples of ____ pollution control equipments
- air
- water
- noise
- soil
- Industrial Gears are used for
- controlling speed
- controlling torque
- both
- none
- India Microfinance Equity fund is administered by
- NABARD
- SIDBI
- Ministry of MSME
- Ministry of Rural Development
- Competitive industrial performance index is prepared by
- OECD
- UNIDO
- World Bank
- UNTCAD
TUFS is 1991 and not 1999.
Yearbook 2014 page number 517
correction please
Mrunal sir i cannot find IIP article….Also bottom to up articles of economy…….You made it topic wise in economy archives but i want old type bottom to top articles..give topic headings so that i can surf and read. Pls sir.