EPFO ENFORCEMENT OFFICER STUDY MATERIAL & BOOKS 2020: Features of New Industrial Policy

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EPFO ENFORCEMENT OFFICER STUDY MATERIAL & BOOKS 2020:



Strengthening of Private Sector
Abolition of licensing system for large number of industries
Greater role of private sector envisaged
Contraction in field of operations for public sector
Dismantling of controls
Dispersing IndustriesPolicy to shift industries away from big congested cities to rural and backward areas
Incentives were brought to attract industries to village and backward regions
Favoured agro-based industries near the farming areas

Limiting role of public sectorPolicy pointed out the grey area which were not fit for PSUs and needs to be vacated by them

Liberalization of foreign investmentsForeign investment in the form of FDI allowed up to 50% with automatic approval
Foreign investment in export promotion activities

Foreign technology had been made easy by allowing automatic approvals for technology related agreements
Promotion of Small Scale Industries (SSI)It ensured adequate supply of credit these industries based on their needs
To enable modernization and technical up gradation, the policy allows equity participation by other non-SSI undertakings in SSI sector
Limited partnership was allowed to enhance the supply of risk capital to the SSI sector
It ensured the speedy payment towards the sale of products by SSI sector

Domestic Regulatory ReformsReduced the number of reserve industries
Security and Industries of strategic concern were reserved for public sector

Abolition of Industrial Licensing: It abolished industrial licensing system for all industries except few such as security and strategic concerns, social concerns, related to safety and manufacture of hazardous industries


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