After the launching of a new Industrial Promotion Policy, effective for commercial production on or after 1st April, 2004, the rules and procedures were modified accordingly to facilitate employment generation.

As the draft of the new policy was prepared in consultation with the entrepreneurs, industrialists, financial institutions and top banking officials, therefore it is expected that the initiative would be taken to give employment opportunities to the educated youth of the middle-class group.

During the post-independence era, India adopted a mixed economic structure to accomplish strategic economic development.

The Government of India has realized that small scale industries have major potential to contribute to the economic development and employment generation. Many research studies have observed that Small scale Industries (SSIs) can easily fulfil the employment gaps and requirements of domestic customers within a lower price range. Hence, in comparison to large scale industries, the small sector is contributing hugely to the GDP growth of the country. With the help of technology, it is expected that small scale industries can be easily developed and promoted to every corner of the rural area with achieving major employment and economic growth.

Industrial Policy of Government of Gujarat

The Government of Gujarat is acknowledged for its healthy and conducive climate in conducting business and industrial operation. Among many steps, the most recognized ones are – a) streamlining approval process, b) building regional and economic linkages in the state, c) emphasizing on the in-house skill development, d) driving the labour-intensive industries, e) focusing on sustainability and innovation with managing positive externalities for affiliate sectors. Hence, it is expected that the industrial development of the state will be augmented with the help of new industrial policy 2015 as it broadly contours the government’s mission. Apart from keeping provisions for future changes in specific resolutions, this policy is aligned with the government’s approach and fundamental principles for creating a suitable business as well as industrial environment to the interested stakeholders, industrialists, corporate and partner institutions. The new industrial policy consists of the following features-

• Development of industrial growth framework for people empowerment, employment generation and giving the economy a snowball effect
• Building a business roadmap for improvement in ability
• Facilitating economic development with a clear picture for policy coordination, including intra-governmental and public-private partnership, laws as well as principles

In the perspective of a new industrial policy, state-industry reactions should get priority over mere allocation of resources and provision of permissions for building a beneficial future strategy. During the deep economic crisis of 2008, developed countries suffered a double dip recession with emerging economies a severe slowdown. While global growth is still suffering from lingering effects of the crisis with high inflationary pressures on one hand, Asia is emerging as a new region of economic activity on the other to trigger positive spill-over effects. Indian economy also had its share of slow growth and high inflation while contending with external stability due to factors of unsustainably high current account deficit (CAD), capital outflows and consequent exchange rate pressures. During the FY 2013-14, these factors are posing serious challenges to the Indian economy as the country is committed to fulfill fiscal consolidation, strengthen the monetary policy framework and adopt a policy framework of RBI as well as government to achieve sustainable growth. Although in FY 2014-15, the expected GDP growth rate was around 5.5%, the country should make a target of attaining at least 7% growth over the medium term and microeconomic policies by aligning its strategy with the supportive macroeconomic regime.

Further, it can be stated that the sustainable growth strategy is following the ‘Make in India’ policy to promote the domestic manufacturing and local business programs. The focus of this program is to improve the manufacturing scenario of the country by leveraging the demographic dividend of a young and working population. India is targeting to become the youngest country by 2020, comprising 28% of the world’s workforce, with an average age of 29 years. So, this statistical data clearly indicates that in the coming future the ratio of dependents to breadwinners would be significantly reduced. However, this will be possible only if the thriving manufacturing sector would be able to create both white- and blue-collar jobs on a large-scale basis. It is expected that the success of this program will not only be able to prevent urbanization related problems, but also at the same time encourage the development of regional expertise. Hence, by leveraging the demographic dividend and adequately utilizing the abundant natural resources, the country will be able to attain its target of cost-effective production policy.

Further, the ‘zero defect’ approach will not only manage superior quality, but also at the same time help the country to remain globally competitive. Moreover, by nourishing these strong factors, the thriving manufacturing sector will change the perception of quality on the global stage while managing a strategic advantage.