Interministerial Consultation on New Industrial Policy: DPIIT Secy

A senior government official said an inter-ministerial consultation is underway to formulate a new industrial policy that would aim to create a globally competitive business environment to boost production and exports. This would be the third industrial policy after the first in 1956 and the second in 1991.

It should replace the industrial policy of 1991, which was developed against the background of the balance of payments crisis.

“Policy is in the process of inter-ministerial consultation… It will focus on the newer industries that have now emerged,” Rajesh Kumar Singh, Minister at the Department of Industry Development and Domestic Trade (DPIIT), told PTI.

The proposed policy is likely to propose reforms to promote and create a globally advanced, innovative and competitive industrial ecosystem.

The six headline policy objectives can include a focus on competitiveness and efficiency; economic integration and advancement in the global value chain; Promoting India as an attractive investment destination in the world; promoting innovation and entrepreneurship; and circular and sustainable ecosystem.

After the consultations are complete, the department will likely approach the Union Cabinet for approval.

Asked about progress on revising the base year wholesale price index (WPI) from 2011-12 to 2017-18, Singh said it was also in the process of inter-ministerial consultation.

Changing the base year would help paint a more realistic picture of the price situation in the country.

The department had issued a draft working group technical report in June 2021 that proposed revising the base year and adding about 480 items such as medicinal plants, USB flash drives, elevators, fitness equipment and certain motorcycle engines to the new series.

The index currently includes a total of 697 items, including primary items (117), fuels and energy (16), and manufactured goods (564).

The WPI revision is a regular exercise. The current revision process of the WPI base year was carried out to take into account the structural changes in the economy.

Two main indices are used to track price movement: the Wholesale Price Index (WPI) and the Consumer Price Index (CPI).

While the WPI measures the price movement of goods on wholesale markets, the CPI measures inflation at the retail level and also includes certain services.

Since the WPI was introduced in 1942 with a base year of 1939, seven revisions have been made to introduce new base years: 1952–53, 1961–62, 1970–71, 1981–82, 1993–94, 2004–05, and 2011–12.

The current WPI base year series 2011–12 started in May 2017.

Related Articles

Back to top button

Subscribe To Our Newsletter

Don't miss new updates on your email