- [Block 1] Policies
- [Block-2] Make in India (MII)
- [Block-3] Labor Factory reforms
- [Block-4] Schemes: Skill / Social security
- 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.
- ’48: Shyama’s policy; ’56: focus on PSU; 91: Liberated
- 5 sectors need license: Tobacco, Desi liquor, Industrial explosive, Hazardous chemicals, Defense electronics.
- 3 reserved for PSU. Rail, Atomic mineral, Atomic energy.
- PSU: Disinvestment permitted, MoU for op.flexibility, later various “Ratna”
- FDI relaxed, 100% NRI investment permitted.
- Tech parks for Software, electronic, hardware
- To help M&A- MRTP removed, later CCI setup.
- Increase MFG’s share in GDP from present 15% to 25%. [though China 35%]
- Create 100 million jobs in a decade.
- MFG focus: employment intensive sectors- Textile, IT; MSME,
- Simplify labour and environment laws=> Modi: factory, apprentice bills + green law panel under TSR Subramanian
- Skill Development via Polytechs=> Modi skill India, Din Dayal Antyo.
- Setup Mfg promotion boards, NIMZ (invest & mfg)
- Infra via PPP=> Modi: REITS, INVITs, 3P-India for contracts
- Tax relief to startup co.s; skill Development via Polytechs.
- 1 e-literate person in each household.=> Modi Digital India mission for rural broadband.
- 1 crore new IT personnel
- Public services/softwares in Vernacular, PH friendly, transparency=>Modi E-kranti system
- Strong framework against cybercrime
- Promote Cloud computing, open source software
- Tax relief to IT startups. (just like mfg policy)
- Target 2020: 300 billion$ revenue, 200$ exports.
- Survey Suggestion: separate Department for service sector, divest service-sector PSU, give collateral free loans to start up cos.
- 2020: rural teledensity increase to 100 =>USOF Universal service obligation fund to improve net connection in rural/naxal areas
- Right to broadband with 2mbps speed=> NFON National optical fiber network to connect 2.5 lakh Gram Panchayat.
- 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.
- All India mobile no. portability in 2015 (right now only circle wise. Total 22 circles)
- Unified license for India. (no need to buy separate for each 22 circles)
- spectrum delinked from license. Have to buy it separately.
- Allot Spectrum in transparent, market determined price. Simplify M&A in telecom industry.
- Make India a global hub for telecom mfg., VoIP, Cloud computing. Modi=>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.
- World economic forum’s Global competitiveness index: 71.
- World bank Ease of doing business rank 142. (double of 71)
- 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)
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.|
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
- 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.
- 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
- 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
- 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.
#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.
- 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.
- Company law tribunal (NCLT) to reduce burden of HC. Directly approachable, 3 months deadline to solve case. Appeal @NCLAT
- NFRA: Financial reporting authority. Set accounting standards, power of civil court, can punish CA and B.Com. ICAR doesn’t like it.
- Investor edu.+protection authority: financial literacy to prevent Saradha, sahara scams. Chaired by Secretary of corp.affairs ministry
- SFIO: given statutory status, power to search-seize, other agencies need to handover witnesses and evidences.
- 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.
- 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|
- 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.
- 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
Next coming revision note: GS2: IR related Economy- bodies & agreements.