1. Prologue
  2. [Block 1] Policies
    1. New Industrial policy 1991
    2. National MFG policy 2011
    3. National IT policy 2012
    4. New Telecom Policy 2012
  3. [Block-2] Make in India (MII)
    1. Why Make in India?
    2. MII: FIVE-mechanism
    3. IPR protection (GS3)
  4. [Block-3] Labor Factory reforms
    1. Why need factory/labour reforms
    2. Factory bill 2014
    3. Small factories bill 2014
    4. Apprentice bill 2014
    5. Companies Act 2013
    6. Companies Act: 4 statutory bodies
  5. [Block-4] Schemes: Skill / Social security
    1. Din Dayal Antyodaya
    2. Jivan Praman
    3. EPFO
    4. RSBY revamped (soon)
    5. Labour/Skill: Misc.Schemes


  • Like I said in the first revision note: 4-5 points on selected topics. Assumption: you already have read earlier articles. This is just like minute memory jogging.
  • GS2: schemes, policies, intervention = fifty dozen schemes. I’m only making note of things related to manufacturing sector.
  • Reason: MFG topic too hot given make in India. Even if directly not asked, still same bullets can be used for poverty, hunger, empowerment related questions in GS to 3 and essay as ‘fall back line’ when you can’t recall anything else.
  • Next coming revision note: GS2: IR related Economy- bodies & agreements.

[Block 1] Policies

Government Policies

fifty dozen policies but these useful to handle mfg/service sector related Qs.

New Industrial policy 1991

  1. ’48: Shyama’s policy; ’56: focus on PSU; 91: Liberated
  2. 5 sectors need license: Tobacco, Desi liquor, Industrial explosive, Hazardous chemicals, Defense electronics.
  3. 3 reserved for PSU. Rail, Atomic mineral, Atomic energy.
  4. PSU: Disinvestment permitted, MoU for op.flexibility, later various “Ratna”
  5. FDI relaxed, 100% NRI investment permitted.
  6. Tech parks for Software, electronic, hardware
  7. To help M&A- MRTP removed, later CCI setup.

National MFG policy 2011

  1. Increase MFG’s share in GDP from present 15% to 25%. [though China 35%]
  2. Create 100 million jobs in a decade.
  3. MFG focus: employment intensive sectors- Textile, IT; MSME,
  4. Simplify labour and environment laws=> Modi: factory, apprentice bills + green law panel under TSR Subramanian
  5. Skill Development via Polytechs=> Modi skill India, Din Dayal Antyo.
  6. Setup Mfg promotion boards, NIMZ (invest & mfg)
  7. Infra via PPP=> Modi: REITS, INVITs, 3P-India for contracts
  8. Tax relief to startup co.s; skill Development via Polytechs.

National IT policy 2012

  1. 1 e-literate person in each household.=> Modi Digital India mission for rural broadband.
  2. 1 crore new IT personnel
  3. Public services/softwares in Vernacular, PH friendly, transparency=>Modi E-kranti system
  4. Strong framework against cybercrime
  5. Promote Cloud computing, open source software
  6. Tax relief to IT startups. (just like mfg policy)
  7. Target 2020: 300 billion$ revenue, 200$ exports.
  8. Survey Suggestion: separate Department for service sector, divest service-sector PSU, give collateral free loans to start up cos.

New Telecom Policy 2012

  1. 2020: rural teledensity increase to 100 =>USOF Universal service obligation fund to improve net connection in rural/naxal areas
  2. Right to broadband with 2mbps speed=> NFON National optical fiber network to connect 2.5 lakh Gram Panchayat.
  3. Make Mobile a socio-economic empowerment=>UID link with SIM CARD. Future vision Apple-pay like system, swipe mobile to pay/transfer money. no more rural branches, BCA-agents.
  4. All India mobile no. portability in 2015 (right now only circle wise. Total 22 circles)
  5. Unified license for India. (no need to buy separate for each 22 circles)
  6. spectrum delinked from license. Have to buy it separately.
  7. Allot Spectrum in transparent, market determined price. Simplify M&A in telecom industry.
  8. Make India a global hub for telecom mfg., VoIP, Cloud computing. Modi=>Make in India.

[Block-2] Make in India (MII)

Why Make in India?

  • India became Agrarian to => direct service economy. Not much focus on mfg. sector.
  • Agro gives 14% to GDP, employs 49% junta= disguised unemployment.
  • While MFG gives 15% to Indian GDP and 35% to Chinese.
  • IF MFG boost=>small farmers can shift to industry. poverty removal, land consolidation, farm mechanization=high agro output.
  • 3D-Strength = democracy, demographic dividend, demand in huge quantity.

MII: challenges

  • World economic forum’s Global competitiveness index: 71.
  • World bank Ease of doing business rank 142. (double of 71)

MII: FIVE-mechanism

Make in India

  • Simplify processes: De-licensing and deregulation=> New Factories bill, eBiz poral to apply online, industrial license valid for 3 years. Special team to guide first time investor.
  • Improve infra: New Industrial corridors authority, 3P-India, smart cities-REITs-INVITs ;Modi to get funds from US, China, Japan; BRICS bank, AIIB
  • Skilling: Skill India mission, Deen Dayal Antyodaya Yojana,
  • Focus on 30 mfg. sectors: autoparts, pharma-chemicals, leather-textile, mining-construction, food-processing-hospitality etc. Here we’ve potential to become world top-10; potential manpower and demand available.
  • Open up sectors: FDI in Defense 49% and Railways 100%
  • Protect IPR (below)

IPR protection (GS3)

Focus on five angles

1.Patent innovative product / process for industrial use.=> DIPP=>Patent office.Indian patent offices to connect online with other nations under Madrid Protocol, automated applications and approvals.=>followup special 301 report revision note for GS2-IR-Economy.
2.Industrial design registration for 10 years. Renewed again for 5 years.
3.Trademarks Automated registration of trade marks. Can be renewed for infinite time.
4.GI Statutory GI registry body @Chennai. Foreign companies can register GI in India under WTO-TRIPS agreement.
5.Copyright HRD ministry

Side note: to counter us, China too launched “Made in China” scheme to give R&D, Tax sops to Mfg-Sectors: aviation, bio—medicine production, railway and ships, IT-electronics

[Block-3] Labor Factory reforms

labour reforms in india

again fifty dozen topics but these ones helpful for generic questions

Why need factory/labour reforms

  • 44 union + >150 state acts=> conflicts, bribery, inspector raj
  • Industrial disputes act: >100 workers=need Government permission before firing => contractual labour without social security benefits (SSB).
  • Apprentice made to work like regular employee yet no SSB.
  • Owner can be arrested for petty issues like no spittoon.
  • Foreigners won’t come to Make In India, unless these issues fixed.

Factory bill 2014

  • On Narendra Jadav Committee (2010)
  • Factory def: 20 workers if power used; 40 workers if not.
  • Women: nightshift with safety-transport provisions; can work on heavy machinery unless pregnant/PH
  • Worker: Reforms in Overtime, paid leaves; right to cool drinking water, spittoon, restrooms. Canteen depending on (#) of workers.
  • Owner: self-certification, can decide workweek, can’t be arrested on small issues like no restroom/cool water.
  • Benefit: women empowerment, no more bribery inspector raj

Small factories bill 2014

  • 2000: 2nd National labour commission recommends separate law for small factories.
  • New bill 2014: for MSME with upto 40 workers.
  • Women can work on heavy machines.
  • Small one-room “factories” can’t setup separate washroom, spitton etc. so they’re allowed to have joint facilities with other small factories.
  • Self-compliance features similar to (non-small) Factories bill 2014

Apprentice bill 2014

  • Minimum age 14 years to join non-hazardous industry as an apprentice
  • Government to decide quota and training syllabus in each industry
  • Companies can accept non-engineer/diploma; fix workdays; multiple companies can join to give pre-training.
  • Post-training a certification exam.
  • Web portal for self-certification; reasonable fines.
  • Benefit: flexibility to company, skilled youth to help make in India.

Additional topics:

#1: Modi scheme- Apprentice protstahan yojana: Government will contribute 50% of stipend for first two years of training

#2: Self-compliance/ Self certification: CRITICISM

  • 2013 National crime report: >350 workers died in boiler explosion.
  • Inspector-raj is necessary. Suppose Defective Boiler & other dangerous machines. Owner himself won’t work/check. May not hear complaints from workers & yet upload “everything tested OK” self-certificate on portal. (keep that in mind for Ethics case studies)

#3: random inspection

  • Modi reform: labour/factory inspection will be done on random lucky draw by computers. (to ensure those self-compliance claims are right)
  • Inspector to upload report within 72 hours. => less opportunities for manipulation and bribes.

Companies Act 2013

  • Replaced ’56
  • 3 types: one person, private (2-200), public ltd. (7-unlimited).
  • BoD reforms: min.15 directors in public ltd, 1/3rd independence, 1 woman, 1 Indian resident.
  • Independent directors: performance review by AGM, 10 year term limits.
  • Whistleblower protection, internal and external audit mechanism, limits on CA about how many firms they can audit per year.
  • Quorum requirements for AGM and board meetings
  • CSR: 2% of last 3 years’ avg.profit. Selected companies only e.g. above 5 crore net profit  /500 cr. Net worth, 1000 crore turnover.

Companies Act: 4 statutory bodies

  1. Company law tribunal (NCLT) to reduce burden of HC. Directly approachable, 3 months deadline to solve case. Appeal @NCLAT
  2. NFRA: Financial reporting authority. Set accounting standards, power of civil court, can punish CA and B.Com. ICAR doesn’t like it.
  3. Investor edu.+protection authority: financial literacy to prevent Saradha, sahara scams. Chaired by Secretary of corp.affairs ministry
  4. SFIO: given statutory status, power to search-seize, other agencies need to handover witnesses and evidences.

[Block-4] Schemes: Skill / Social security

  • Following block covers only labour / skilling related schemes.
  • I’m not going into all those health-education schemes.  You may refer to them under Ch.13 economic survey summaries under Mrunal.org/economy
  • Urban infra Development schemes=>under GS3 Economy revision note coming soon.

Din Dayal Antyodaya

  • Why?: 57 million worker shortage in 1st world by 2020.
  • Make in India useless without skilled workers. 10% of new workers skilled. (China 50%)
Rural component Urban component
  • SGSY=>NRLM=>Ajeevika=>skill components: Din Dayal Upa. Gramin Kaushalya Yoj.
  • 15 age+; train 10 lakh youth in next 3 years;
  • setup training centre; international syllabus; PH attention
  • HUPA: train 5 lakh every year via Livelihood centres via NSDC Corop.
  • vendor market training; shelter for homeless
  • urban SHG: 10k loan; enterprise – loan interest subsidy

Jivan Praman

  • Why? Pensioner need to submit physical life certificate every year- to show he’s alive and claim pension.
  • Jivan Praman = Aadhar-based Digital Life Certificate.
  • DEITY  (Dept. of Electro.&IT) designed software.
  • Software reads pensioner’s Aadhar card, biometric data=> uploaded to server=> digital life certificate generated.
  • Pension giving babu can access online and release pension.
  • Pensioner no need to physically visit office => less inconvenience and bribery harassment. Dignity to elderly.


  • UAN: Uniform account number for >4 crore subscribers: can view account, transaction data, grievances redressal. No need to get new number when changing jobs.
  • LIN: Labour identification number for ~6 lakh employers. So they can file online provident contribution, annual returns. Less inspector raj and harassment.
  • Assured Minimum Rs.1000 pension, compulsory EPS for upto 15k salary.

RSBY revamped (soon)

  • Rashtriya Swasthya Bima yojana.
  • Plans to merge Aam Admi Bima Yojana and India Gandhi old age pension with it
  • Smart card for unorganized workers.
  • 3rd party audit, call centre for grievances
Labour/Skill: Misc.Schemes
Udaan Skilling J&K youth by MHA+NSDC
SKill India
  • Budget 2014.
  • Employability + entrepreneurial skill. (get job and give job)
  • Even traditional welder, carpenters, cobblers, masons be given training to become suitable to Make in India.(e.g. pepperfry.com online furniture shopping site- after delivery carpenter assembles at your home)
  • Skilling minority artisans
  • Kashmiri embroidery, bengali jardosi, sikh phulkari embroidary, buddhist thangka paintings
Nai Manzil Skilling Madressa passouts to join main-stream (computer, english etc)
Varistha pension bima
  • 60 and above
  • From 15th aug. 1 year validity
HR Khan Committee on how to use unclaimed money from post-office, PPF etc. for elderly welfare.

Next coming revision note: GS2: IR related Economy- bodies & agreements.