What is the meaning of industrial licensing?
Industrial licensing is an authority issued by the government organisation to permit the institution or organisation for starting an industry or to start certain function.
What is industrial licensing How does it impacts allocation of resources?
impact on allocation— it REGULATES the allocation of resources for different uses as whenver the company will expand its production capacity it will be required to acquire licence n thus it will give the govt. without license any industry would use or even exploit the resuorces no matter how scarse they are…
What is industrial licensing in business environment?
Industries that require industrial licensing for manufacturing in India include: Industries under compulsory licensing; and. Industrial undertakings attracting locational restrictions. The licensing provision also applies to the expansion of the existing industrial units.
What is the rationale behind industrial licensing?
The provision was aimed at protecting indigenous manufacturers from unequal competition with large scale industries. However, in April 2015, the government de-reserved these items to encourage greater investment, incorporate better technologies, and enhance competition in the Indian and global market for the products.
What is an example of licensing?
Examples of licenses include a company using the design of a popular character, e.g. Mickey Mouse, on their products. Another example would be a clothing manufacturer like Life is Good licensing its designs and brand in a certain country to a local company.
Why do we need industrial policy?
The industrial policy seeks to provide a framework of rules, regulations and reservation of spheres of activity for the public and the private sectors. This is aimed at reducing the monopolistic tendencies and preventing concentration of economic power in the hands of a few big industrial houses.
What were the features of industrial policy of 1956?
Fair and non-discriminatory treatment for the private sector, encouragement to village and small-scale enterprises, removing regional disparities, and the need for the provision of amenities for labor, and attitude to foreign capital were other salient features of the IPR 1956.
Why were small-scale industries relied upon to achieve the goal of employment and equity?
The purpose of this policy was to promote regional equality. small-scale industries for promoting rural development. It was believed that small-scale industries are more ‘labour intensive’ i.e., they use more labour than the large-scale industries and, therefore, generate more employment.
What is abolition of industrial licensing?
Industrial licensing was abolished for almost all product categories, except for alcohol, tobacco, hazardous chemicals, industrial explosives, electronics, aerospace and pharmaceuticals. Arguing that the Planning Commission had outlived its utility, Modi government disbanded it in 2014.
How many industries licensing is still necessary?
five industries
Currently, only five industries are under compulsory licensing mainly on account of environmental, safety and strategic considerations. They are: Distillation and brewing of alcoholic drinks. Cigars and cigarettes made from tobacco and manufactured tobacco substitutes.
How many industries are under compulsory licensing?
What categories of products was industrial licensing not abolished?
Industrial licensing was abolished for almost all product categories, except for alcohol, tobacco, hazardous chemicals, industrial explosives, electronics, aerospace and pharmaceuticals.
What do you mean by industrial licensing policy?
fWhat is Industrial Licensing? Industrial policy means rules, regulations, principles, policies and procedures laid down by government for regulating, developing and controlling industrial undertakings in the country.
What kind of industries need an industrial license?
Earlier, large industries that manufactured items that were exclusively reserved for Micro, Small, and Medium Enterprises (MSME) also needed to obtain an industrial license. MSMEs were previously known as Small Scale Industry (SSI).
What are the rules for industrial licensing in India?
Industrial Licensing in India: Norms and Policy 1 Removal of manufacturing curbs on products previously reserved for MSMEs. 2 Industries subject to compulsory licensing in India. 3 Location restrictions for industries in India. 4 License registration for industries.
Who is exempt from getting an industrial license?
All industrial undertakings are exempt from obtaining an industrial licence to manufacture, except for the following industries: (i) industries reserved for the Public Sector . (ii) industries retained under compulsory licensing .