The Industry Vertical deals with issues relating to the manufacturing sector.
The main activities of the Industry vertical during the current year have been in the following areas:
Make in India
Ease of Doing Business
Interaction with stakeholders
Preparation of discussion/ approach papers to facilitate high level/ IMC meetings
Representation of NITI Aayog in various Committees and Development Councils
1. Make in India Initiatives in Defence and Aerospace sector:
Industry Vertical was involved in preparation of status paper and recommendations in the following areas:
(i). A comprehensive paper analyzing the warship building industry was prepared after discussions with Ministry of Defence, Ministry of Shipping, public sector shipyards and private sector shipyards.
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A presentation was made by CEO NITI Aayog to Principal Secretary to Prime Minster and the PMO approved NITI Aayog recommendations for revitalising the sector. These include discontinuation of the practice of nominations by MoD and capacity assessment by the Navy and opening up smaller projects for SMEs in the shipping industry.
(ii). A study on the present acquisition procedures was undertaken at NITI Aayog. The report was presented by CEO, NITI Aayog to Principal Secretary to Prime Minister in the presence of the National Security Advisor, Defence Secretary, Finance Secretary, Secretary IPP and Secretary Defence Production. The key point was that demands need to be aggregated and piecemeal orders be discontinued so as to create a sustainable defence industrial base in the country. A decision support system for defence acquisitions has been proposed to reduce the number of acquisition stages.
(iii). A paper on promoting FDI in the aerospace and defence sector was prepared based on disaggregated sub categories aligned with the NIC Code, ITC (HS) code and the Industrial licencing policy. The paper has been forwarded to DIPP, for examination.
(iv). CEO NITI Aayog chaired a team, including Defence Secretary to provide a roadmap for utilization of Ordnance Factory Board (OFB) assets to attract FDI in manufacturing of small arms. A paper on this matter was prepared and the same was circulated to Ministry of Defence, Ministry of Home Affairs and D/o Industrial Policy and Promotion. MHA will steer the matter being the nodal agency for the ‘small arms’.
IMC on Coastal Economic Zone:
In pursuance of discussion held in the 3rd meeting of Sagarmala Co-ordination and Steering Committee held on 25.11.2016 under the chairmanship of Cabinet Secretary, an Inter-Ministerial Committee (IMC) was constituted by Ministry of Shipping under the chairmanship of CEO NITI Aayog for preparing a road-map for the Coastal Economic Zone (CEZ) development and for steering the development of the related CEZ. NITI Aayog was nodal agency for the committee.
IMC constituted two sub-groups – one for making recommendations for a comprehensive package of incentives for CEZs and another to have discussions with the senior officials of the State Governments on the availability and suitability land for the development of CEZs. The IMC, in its 3rd Meeting held on 3rd November 2017 made comprehensive recommendations regarding parameters for the proposed challenge method for selection of CEZs in the 1st phase, institutional mechanism, draft state support Agreement (SSA) and shareholders agreement, and package of incentives. As the primary objective of the proposed CEZs is employment generation, IMC has recommended that the proposed zones may be renamed as Coastal Employment Zones. Ministry of Shipping would be following up on the recommendations of the IMC.
2. Ease of Doing Business Initiatives:
NITI Aayog released the report on Ease of Doing Business based on an Enterprise Survey, conducted jointly with the IDFC Institute. The survey was conducted between April 2015 and April 2016. The survey indicates that the government’s efforts to improve business environment are showing results on the ground. The experiences of start-ups, or enterprises started during or after 2014, suggest a significant improvement in doing business over time. Overall, the NITI Aayog-IDFC Institute Ease of Doing Business report shows that many of the actual experiences of enterprises are better than expert perceptions reported in past surveys.
Further, Industry vertical coordinated with 14 Ministries/ Departments on for implementation of 72 recommendations on Procedural Simplification and Dismantling of unnecessary controls received from private sector. Action has been completed on the 25 recommendations while 19 recommendations are under different stages of implementation. The periodic progress in this matter was shared with PMO.
3. International cooperation:
(i). Signing of Statement of Intent with Australian Treasury:
A Statement of Intent on bilateral economic partnership for mutual understanding and cooperation between NITI Aayog, and the Australian Treasury, Australian Government was signed on 14th July, 2017 in the presence of Australian High Commissioner in India and CEO, NITI Aayog.
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The SOI envisages a partnership founded upon pragmatic cooperation, bilateral discussion, and sharing of developmental policy experiences. The SOI also include constitution of a joint working group and meeting annually at an “Annual Economic Policy Dialogue” both in India and Australia alternatively to discuss the topics related to macroeconomic environment and cooperation priorities of the day.
(ii). 3rd Development Research Council of China -NITI Aayog Dialogue:
The 3rd Dialogue between the NITI Aayog of India and the Development Research Council of China (DRC- NITI Aayog Dialogue) co-chaired by Dr. Rajiv Kumar, Vice Chairman NITI Aayog and Mr Li Wei, President (Minister), DRC was held in Beijing on 5 December, 2017. On the sidelines of the Dialogue, Vice Chairman NITI Aayog called-on Chinese Vice Premier Mr. Zhang Gaoli. The 3rd Dialogue enabled an in-depth interaction between the two delegations on the world economic prospects, India-China economic cooperation and practices for sustainable growth. Both sides exchanged views on policies and measures to address the challenges for attaining sustainable growth. The discussions were also held on sharing of experiences and best practices in the areas of Electric mobility, clean energy, Higher education and Special Economic Zones (SEZs).
The dialogue took place under the MOU between NITI Aayog of the Government of India and the Development Research Centre (DRC), State Council of the People’s Republic of China that was signed during the visit of Hon’ble Prime Minister of India to China in May 2015.
(iii). Participation in Innovate 2017 event in Birmingham, UK
Adviser (Industry) attended UK’s flagship innovation event, Innovate 2017 and UK-India Next Gen workshop on Artificial Intelligence, Big Data and Internet Things. The event was also involved participation of Invest India and NAASCOM. India U.K. Future Manufacturing Report was also launched during the Innovate 2017 event.
4. Interactions and Meetings with Stakeholders
Following meetings/ discussions/presentations/ were organized by Industry Vertical in NITI Aayog:
- Talk on "BlockChain, Cryptocurrencies and impact on Governance" on 4th August, 2017 by Professor Bhagwan Chowdhry, UCLA Anderson, Los Angeles.
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- Presentation on “Strengthening the Apparel Exports and Job creation” by Apparel Export Promotion Council on 16th September, 2017.
- A meeting to discuss ‘Way forward for addressing the issues relating to financing in Micro, Small and Medium Enterprises (MSMEs)’ held under the chairmanship of Additional Secretary (KIH), NITI Aayog on 08.09.2017.
- A meeting to discuss the issues hampering the growth of MSMEs in India under the chairmanship of Vice Chairman NITI Aayog on 04.10.2017
- A meeting to discuss the way forward for warship building in India under the chairmanship of CEO, NITI Aayog on 08.05.2017
- A meeting to discuss issues relating to Unmanned Arial Systems (UAVS) and steps required to ensure better governance, enable innovative commercial applications and encourage manufacturing was held under the chairmanship of CEO, NITI Aayog on 25.07.2017. Following the meeting, MHA had prepared a draft Drone Regulation Act and the DGCA has issued the draft circular on UAV operations.
- Adviser (Industry), NITI Aayog made a presentation on the ‘MADSS’ during a meeting taken by DG (Acquisition), MoD on ‘Business Process Re-engineering in Defence Acquisition’ on 26.07.2017 at South Block, New Delhi.
- A interaction meeting with senior officers of Ethopian Government was held in NITI Aayog on 25.07.2017
- A presentation by Adviser (Industry) on “Rise of Artificial Intelligence (AI) - Impact on economy and government policies” on 11th August, 2017.
- Brainstorming of ideas for ‘Make in India’ as part of the preparation of Development Agenda for India@75 had been carried out in NITI Aayog with different stake holders on 05.10.2017.
- Brainstorming on ideas for improving ‘Ease of Doing Business’ as part of the preparation of Development Agenda for India@75 had been carried out in NITI Aayog with different stake holders on 06.10.2017.
- A meeting to discuss availability of data and possible use cases for adoption of artificial intelligence (AI) in the health sector under the chairmanship of Dr. Vinod Kumar Paul, Member, NITI Aayog on 17.1. 2018.
- A lecture by Joe Lubins, the cofounder of Ethereum and the founder of Consensus on applications of Block Chain Technology in Governance on 16.01.2018
5. New Initiatives:
Creation of GST Cell and Women Entrepreneurship Cell
A GST Cell under the Industry Vertical was created for the smooth functioning and roll out of the Goods and Services Tax reform. The Cell examined the representations received from different industry bodies and took up the matter with the concerned agencies. The impact of GST on specific sectors namely Defence industry, Textiles, Electronics and Leather sectors were prepared and shared with Department of Revenue.
A new Cell under the Industry Vertical, NITI Aayog to promote Women Entrepreneurship in the Country has been setup under Adviser (Industry & DM&A). The immediate focus of the Cell will be on leveraging the existing initiatives of the Government and institutions.
6. Preparation of discussion/ approach papers to facilitate high level/ IMC meetings;
The Industry vertical was involved in the preparation of the following approach papers :
Streamlining Defence procurement - Decision Support System developed
Promoting ‘Make in India’ in Defence – case for small arms
Building database for MSMEs
Shipbuilding in defence sector
FDI in defence sector
Impact of GST on specific sectors prepared and shared with D/Revenue; specifically in Aero & defence industry, Textiles; Electronics, Leather; several recommendations already adopted
Development Agenda for India@75
Make in India and Ease of Doing Business
Report on comprehensive package of incentives for CEZs
The industry vertical was involved in preparation of Development Agenda for India@75. As apart of this initiative an approach paper namely Make in India and Ease of Doing Business was prepared.
7. Representation of NITI Aayog in various Committees and Development Councils
The Industry Vertical represents NITI Aayog in the following Committees and Development Councils:
Review Committee on Public Procurement Policy constituted by MSME
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- Steering Committee of MSE- Cluster Development Programme (CDP)
- Project Appraisal and Monitoring Committee (PAMC) of North East Region (NER) Textile Promotion Scheme by Ministry of Textiles
- Project Scrutiny Committee for Scheme for Integrated Textile Park (SITP)
- Project Scrutiny Committee for Integrated Textile Processing Development Scheme (IPDS)
- Inter-Ministerial Steering Committee (IMSC) on Technology Upgradation Fund Scheme (TUFS)
- Empowered Committee constituted under Indian Leather Development Programme constituted by Department of Industrial Policy and Promotion
- Inter-Ministerial Committee (IMC) on MOU constituted by Department of Public Enterprises
- Empowered Committee Chaired by Secretary, Department of Industrial Policy & Promotion on Capital Investment Subsidy under North East Industrial and Investment Promotion Policy (NEIIPP), 2007
- Apex Committee constituted for scheme on ‘Enhancement of Competitiveness in the ‘Indian Capital Goods Sector’ by Department of Heavy Industry
- Project Approval and Monitoring Committee (PAMC) for Mega Clusters for Handloom and Handicraft Sector under chairmanship of Secretary (Textiles)
- Development Council for Automobiles and Allied industries (DCAAI) under the chairmanship of Secretary, Department of Heavy Industry
- Development Council for Machine Tools Industry
- Development Council for Textile Machinery Industry
Following Committees, which have CEO level participation of NITI Aayog, are serviced by the Industry Vertical:
- High Power Committee (HPC) on MOUs with CPSEs
- Apex Committee of Secretaries for recommendations on conferment/divestment of Navratna status to CPSE.
- Board of Trustees of National Industrial Corridor Development Authority (NICDA).