Indian Industry & Industrial Reforms

📊 High-Yield Data & Statistical Fact Sheet

Cue Words	Notes
Industrial Share in GVA	Industrial sector contribution in GVA: Rose from **15% (1950–51)** to **27.5%–28.3%** in recent years. **Mizoram**: 1st Indian state to grant industry status to sports (2020).
Compulsory Licensing (5 Industries)	De-licensing in 1991 abolished licensing for most sectors. Presently only 5 industries require licensing: Distillation and brewing of alcoholic drinks Cigars and cigarettes of tobacco Electronic aerospace and defence equipment Industrial explosives (matchboxes, gunpowder) Specified hazardous chemicals.
Reserved Public Sectors (2 Sectors)	Public sector reservation reduced from 17 to 8 in 1991. Presently only 2 sectors are reserved: Atomic Energy Railway Operations (excl. PPP corridors, high-speed rail, freight lines, rolling stock).
Maharatna CPSE Financial Autonomy	3-yr avg turnover >**₹25,000 Cr**, net worth >**₹15,000 Cr**, net profit >**₹5,000 Cr**. **Autonomy**: Invest up to **15% of net worth in a single project up to ₹5,000 Crore** without Govt approval (10 CPSEs).
Navratna CPSE Financial Autonomy	Miniratna Category-I + Schedule A, MoU score ≥ 60/100. **Autonomy**: Invest up to **15% of net worth up to ₹1,000 Crore** per project (14 CPSEs).
Miniratna Cat-I & Cat-II Autonomy	**Cat-I**: Pre-tax profit ≥ ₹30 Cr in 1 yr; autonomy up to **₹300 Crore or net worth**. **Cat-II**: Positive net worth for 3 yrs; autonomy up to **₹150 Crore or 50% net worth**.
IIP Sectoral Weights	Index of Industrial Production (base **2011–12**, monthly by NSO): **Manufacturing (77.63%)**, Mining (14.37%), Electricity (7.99%). IIP base year to be updated to **2022-23 by May 2026**; released with a ~6-week lag; H1 FY26 industrial growth was the slowest in at least 5 years.
IIP Growth — December 2025	2026 IIP grew **7.8%** in December 2025 (highest in over 2 years), up from **7.2%** in November 2025. Growth driven by **Manufacturing (8.1%)**, **Mining (6.8%)**, **Electricity (6.3%)**; highest-growth manufacturing sub-sector was "**computer, electronic and optical products**" at **34.9%**.
Purchasing Managers' Index (PMI)	Leading indicator on a 0-100 scale: >50 = expansion, <50 = contraction, 50 = no change; subtypes — Manufacturing, Services, Composite. HSBC India Manufacturing PMI eased to 56.6 (Nov 2025) from 59.2 (Oct 2025) — slowest improvement since February. Manufacturing PMI weights: New Orders (30%), Output (25%), Employment (20%), Supplier Delivery Times (15%, inverted), Inventories (10%).
8 Core Industries Ranking	**Refinery Products (28.04%)** > **Electricity (19.85%)** > **Steel (17.92%)** > **Coal (10.33%)** > **Crude Oil (8.98%)** > **Natural Gas (6.88%)** > **Cement (5.37%)** > **Fertilizers (2.63%)**. Total Weight: **40.27% of IIP**.
Revised MSME Definition (2020)	**Micro**: Investment ≤ **₹1 Crore** AND Turnover ≤ **₹5 Crore**. **Small**: Investment ≤ **₹10 Crore** AND Turnover ≤ **₹50 Crore**. **Medium**: Investment ≤ **₹50 Crore** AND Turnover ≤ **₹250 Crore**.
Corporate Social Responsibility (CSR)	Mandated under Section 135 of Companies Act 2013 (Net Worth ≥₹500 Cr OR Turnover ≥₹1,000 Cr OR Net Profit ≥₹5 Cr). Must spend at least 2% of average net profit of preceding 3 financial years.
4 Consolidated Labour Codes	Subsumed 29 central laws into 4 codes: Code on Wages 2019, Industrial Relations Code 2020, Social Security Code 2020, Occupational Safety & Health Code 2020. **Notified into force**: **21 November 2025** (legal commencement); central rules finalised and full operational enforcement targeted from **1 April 2026**. State-level rule notification remains uneven — a genuine federal-implementation gap worth noting.

💰 Union Budget 2022-23 — MSME & Skilling Announcements 2022

• Portal interlinking: Udyam, e-Shram, NCS, and ASEEM portals to be interlinked, widening their scope; portals will now perform as live, organic databases.
• ECLGS (Emergency Credit Linked Guarantee Scheme): extended up to March 2023; guarantee cover expanded by ₹50,000 crore to a total cover of ₹5 lakh crore, with the additional amount earmarked exclusively for the hospitality and related enterprises sector. 130 lakh MSMEs given additional credit under ECLGS.
• CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises): revamp with required infusion of funds enabling additional credit of ₹2 lakh crore for Micro and Small Enterprises, and expanding employment opportunities.
• RAMP (Raising and Accelerating MSME Performance): a new ₹6,000 crore programme to be launched, to help the MSME sector become more resilient, competitive, and efficient.
• DESH-Stack e-portal (Digital Ecosystem for Skilling and Livelihood): to be launched for online training, enabling citizens to skill/reskill/upskill through API-based trusted skill credentials, payment, and discovery layers.

💰 Union Budget 2024-25 — MSME & Manufacturing Announcements 2024

• New Credit Guarantee Scheme for MSMEs in manufacturing: enables collateral-free/third-party-guarantee-free term loans for purchase of machinery and equipment.
• New credit-continuity mechanism: designed to continue bank credit to MSMEs during stress periods.
• TReDS mandatory-onboarding threshold reduced: buyer turnover threshold for mandatory onboarding onto the TReDS platform cut from ₹500 crore to ₹250 crore (widens the pool of buyers whose MSME dues get discounted on TReDS — see Section 9 for TReDS mechanics).
• Financial support for 50 multi-product food irradiation units in the MSME sector.
• E-Commerce Export Hubs: to be set up in PPP mode to enable MSMEs and traditional artisans to access international markets.
• 12 investment-ready "plug and play" industrial parks announced under the National Industrial Corridor Development Programme (NICDP) — this Budget-speech announcement is the origin of what became the 12 new industrial smart city projects (₹28,602 crore) approved by Cabinet on 28 August 2024 (see dedicated entry below).

🏭 Union Budget 2025-26 — MSME & Manufacturing (2nd Engine) 2025

• MSME classification limits (investment and turnover) for all categories raised by 2.5x and 2x respectively.
• New Credit Cards for micro enterprises registered on the Udyam portal (₹5 lakh limit, 10 lakh cards to be issued in year 1).
• New Fund of Funds for Startups: Fresh contribution of ₹10,000 crore, with expanded scope.
• New scheme for 5 lakh women/SC/ST first-time entrepreneurs: Term loans up to ₹2 crore over 5 years.
• Focus product scheme for footwear & leather sectors: Targets 22 lakh jobs, ₹4 lakh crore turnover, ₹1.1 lakh crore+ exports.
• National Manufacturing Mission announced — covering small/medium/large industries, furthering "Make in India."

🆕 New IIP Series — Base Year 2022-23 2026

• First release of the new All-India Index of Industrial Production (IIP) series with base year 2022-23 (revised from the old 2011-12 base) on 1 June 2026 — the Technical Advisory Committee for Base Year Revision of IIP (TAC-IIP) had released its report on 25 May 2026.
• Item basket expanded from 407 to 463 item groups (1,042 products, up from 839 products).
• New sectors added to IIP coverage for the first time: Gas Supply, and Water Supply/Sewerage/Waste Management (previously not covered by IIP at all).
• Mining & Quarrying now split into Fuel Minerals / Metallic Minerals (incl. rare earth minerals) / Non-Metallic Minerals; Electricity now split into Renewable and Non-Renewable generation sources.
• IIP growth for April 2026 under the new series: +4.9% overall (Manufacturing +6.2%, Mining & Quarrying -5.1%, Electricity & Gas Supply +4.9%, Water Supply/Sewerage/Waste Management +6.6%).

🚀 Economic Survey 2025-26 — Innovation, PLI & Start-ups

2026

• India's Global Innovation Index (GII) rank improved to 38th in 2025 (from 66th in 2019); Bengaluru, Delhi and Mumbai feature among the top 50 most innovation-intensive clusters worldwide.
• PLI Scheme (launched 2020, 14 sectors, outlay ₹1.97 lakh crore) — cumulative performance till Sep 2025: actual investment realised over ₹2.0 lakh crore; incremental production/sales over ₹18.70 lakh crore; employment generated over 12.60 lakh (direct + indirect); cumulative incentives disbursed ₹23,946 crore across 12 sectors.
• 10 semiconductor manufacturing/packaging projects approved with cumulative investment of ₹1.60 lakh crore across 6 states.
• DPIIT-recognised start-ups rose from 500 to more than 2 lakh in 2025 under Start-up India.

📈 Economic Survey 2025-26 — Manufacturing GVA Growth

2026

• Manufacturing GVA grew 7.72% in Q1 and 9.13% in Q2 of FY26, per the Economic Survey 2025-26.

🧊 PLI White Goods Scheme — 4th Round Update

2026

• In the 4th round evaluation (Ministry of Commerce & Industry), 5 companies — all AC-component manufacturers — were provisionally selected, with committed investment of ₹863 crore and expected production of ₹8,337.24 crore, generating 1,799 additional direct jobs by FY2027-28.
• Overall across all rounds: 85 companies selected under the PLI Scheme for White Goods (Air Conditioners and LED Lights) are expected to invest ₹11,198 crore, leading to cumulative production of ₹1,90,050 crore over the scheme period.

🏗️ 12 New Industrial Smart City Projects Approved (Aug 2024)

2024

• 12 new industrial smart city projects, worth ₹28,602 crore, were approved on 28 August 2024 for trunk infrastructure development under the National Industrial Corridor Development Programme (NICDIT) — the same NICDP framework that BHAVYA (below) later builds upon.
• Projects span multiple corridors: DMIC (Jodhpur-Pali-Marwar, Rajasthan); CBIC (Krishnapatnam, Andhra Pradesh; Tumakuru, Karnataka); CBIC-Kochi extension (Palakkad, Kerala); AKIC — Amritsar Kolkata Industrial Corridor (Khurpia Farm, Uttarakhand; Rajpura-Patiala, Punjab; Hisar, Haryana; Agra and Prayagraj, Uttar Pradesh; Gaya, Bihar); HNIC (Zaheerabad, Telangana); HBIC (Orvakal, Andhra Pradesh); VCIC (Koparthy, Andhra Pradesh).
• Construction timeline: 36-48 months from the date of EPC contractor appointment.
• Employment & trade context (original Aug 2024 Cabinet approval): expected to generate ~1 million direct and up to 3 million indirect jobs; aimed at supporting India's $2 trillion export target by 2030 and strengthening India's position in Global Value Chains (GVCs). At the time of approval, NICDP already had 4 completed projects and 4 under implementation.

🏭 BHAVYA — Bharat Audyogik Vikas Yojna (March 2026)

2026

• The Cabinet approved BHAVYA (Bharat Audyogik Vikas Yojna) on 18 March 2026, with an outlay of ₹33,660 crore for 100 plug-and-play industrial parks (each spanning 100–1,000 acres), to be implemented by the National Industrial Corridor Development Corporation (NICDC) under DPIIT, building on the existing Industrial Smart Cities under the NICDP framework.
• Financial support: up to ₹1 crore/acre for core/value-added/social infrastructure, and up to 25% of project cost for external infrastructure; project selection via challenge mode.
• NICDC is currently implementing 20 projects across 13 states.

📊 Index of Eight Core Industries (ICI)

2026

• The combined Index of Eight Core Industries (ICI) increased by 3.7% (provisional) in December 2025 y-o-y.
• The eight core industries — Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity — together comprise 40.27% of the weight of items in the Index of Industrial Production (IIP).
• Cement, Steel, Electricity, Fertilizer and Coal recorded positive growth in December 2025.

📉 Economic Survey 2024-25 — Industry Snapshot

2025

• Industrial sector growth: 6.2% in FY25 (1st Advance Estimate).
• Auto sector: domestic sales grew +12.5% in FY24.
• Electronics production: 17.5% CAGR (FY15-24); 99% of smartphones now manufactured domestically.
• Pharma sector: turnover of ₹4.17 lakh crore in FY24 (10.1% 5-year CAGR).
• India ranks 6th among top-10 patent-filing offices globally (WIPO Report 2022).
• Self-Reliant India Fund: ₹50,000 crore corpus launched for MSME equity funding.

1. EVOLUTION OF INDUSTRIAL POLICIES (1948 TO 1991)

Cue Words	Notes
Industrial Policy Resolution 1948 (IPR-1948)	Introduced Mixed Economy. Divided industries into 4 categories (Central Monopoly, Key/Basic, Controlled Private, Private). Enacted IDRA 1951 introducing compulsory licensing ('License Raj').
Industrial Policy Resolution 1956 (IPR-1956)	Based on **P.C. Mahalanobis Model**. Known as the **'Economic Constitution of India'**. Re-classified industries into 3 Schedules: **Schedule A (17 industries)**: Exclusive Central Government monopoly. **Schedule B (12 industries)**: Mixed state and private ownership. **Schedule C**: Private sector under licensing.
MRTP Act 1969 & FERA 1973	**MRTP Act 1969**: Passed to prevent economic concentration and monopolistic trade (replaced by Competition Act 2002). **FERA 1973**: Enacted to stringently regulate foreign exchange and foreign equity holdings (replaced by FEMA 1999).
New Industrial Policy 1991 (NIP-1991)	Abolished License-Permit Raj via LPG framework. Reduced licensed sectors down to 5 and reserved public sectors down to 2. Abolished MRTP asset threshold limits and established FIPB for FDI approvals.

2. CPSE CATEGORIES, IIP & CORE INDUSTRIES

Cue Words	Notes
Maharatna CPSE Criteria	Must hold Navratna status, be SEBI listed, and achieve 3-year avg **Turnover > ₹25,000 Cr**, **Net Worth > ₹15,000 Cr**, and **Net Profit > ₹5,000 Cr**. **Autonomy**: Incur single-project capex up to **₹5,000 Crore** without Govt clearance.
Navratna CPSE Criteria	Must hold Miniratna Cat-I status and score ≥ 60/100 across 6 financial indicators. **Autonomy**: Single-project capex up to **₹1,000 Crore** without Govt clearance.
Miniratna Cat-I & Cat-II Criteria	**Cat-I**: Pre-tax profit ≥ ₹30 Cr in 1 year; capex autonomy up to **₹300 Crore**. **Cat-II**: Positive net worth for 3 years; capex autonomy up to **₹150 Crore**.
Atmanirbhar Bharat PSU Policy (2020)	Categorizes PSUs into Strategic and Non-Strategic sectors. Maximum 4 PSUs allowed in strategic sectors; non-strategic PSUs privatized, merged, or closed.
Index of Industrial Production (IIP)	Monthly index compiled by NSO (MoSPI) with base 2011–12. Weights: Manufacturing (77.63%), Mining (14.37%), Electricity (7.99%).
Annual Survey of Industries (ASI)	Principal source of organized manufacturing statistics compiled annually by NSO (MoSPI) under Collection of Statistics Act 2008. Covers factories registered under Factories Act 1948 (≥10 workers with power / ≥20 without power).
Purchasing Managers' Index (PMI)	Monthly indicator compiled by IHS Markit based on 5 indicators. Index > 50 indicates expansion; < 50 indicates contraction.

3. INDUSTRIAL SICKNESS, INSOLVENCY, CSR & LABOUR REFORMS

Cue Words	Notes
Industrial Sickness & NCLT	Sick companies declared and resolved by National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code (IBC 2016). Replaced BIFR (SICA 1985; dissolved 2016). Appeals lie with NCLAT and Supreme Court.
Companies (Amendment) Act 2019	Abolished minimum paid-up capital requirement (earlier ₹1 Lakh) and made common seal optional.
Union Budget 2021-22 — Company Law & LLP Reforms	2021 **LLP Act 2008** proposed to be **decriminalized**. **"Small company" definition eased** under Companies Act 2013 — **paid-up capital threshold** raised from "not exceeding **₹50 lakh**" to "not exceeding **₹2 crore**", and **turnover threshold** raised from "not exceeding **₹2 crore**" to "not exceeding **₹20 crore**". **One Person Company (OPC)** incentives: no restrictions on paid-up capital/turnover for growth; allowed conversion to any other company type anytime; **residency requirement** for Indian citizens to set up an OPC reduced from **182 to 120 days**; **NRIs permitted to incorporate OPCs** in India for the first time. **MCA21 Version 3.0** (data analytics/AI/ML-driven) targeted to launch in 2021-22.
Union Budget 2021-22 — SARFAESI Threshold Reduction	2021 Minimum loan size eligible for debt recovery under the **SARFAESI Act 2002** proposed to be reduced from **₹50 lakh to ₹20 lakh**, for **NBFCs with minimum asset size of ₹100 crore**.
CSR Statutory Framework (Sec 135)	Mandates spending at least 2% of average net profit of preceding 3 financial years on Schedule VII social activities. Unspent funds must be transferred to specified Schedule VII funds within 6 months.
Code on Wages 2019	Subsumes Minimum Wages Act 1948, Payment of Wages Act 1936, Payment of Bonus Act 1965, Equal Remuneration Act 1976.
Code on Industrial Relations 2020	Subsumes Trade Unions Act 1926, Standing Orders Act 1946, Industrial Disputes Act 1947.
Code on Social Security 2020	Subsumes EPF Act 1952, ESI Act 1948, Maternity Benefit Act 1961, Gratuity Act 1972, Unorganised Workers Social Security Act 2008.
Code on Occupational Safety 2020	Subsumes Factories Act 1948, Mines Act 1952, Contract Labour Act 1970, Inter-State Migrant Workmen Act 1979.
IP Statements 1977 & 1980	**Industrial Policy 1977**: Shifted focus to small-scale and cottage industries; established **District Industries Centres (DICs)** in every district. **Industrial Policy 1980**: Promoted optimum capacity utilization, technological upgradation, and revival of sick industrial units.
National Productivity Council (NPC) & Champion Sectors	**National Productivity Council (NPC)**: Autonomous body under DPIIT (Ministry of Commerce & Industry) propagating productivity culture and efficiency. **Champion Sectors**: 12 strategic sectors (e.g. IT, Tourism, Capital Goods, Electronics) identified by Cabinet for special PLI and policy push.
Make in India, Start-up India & Stand-up India	**Make in India (2014)**: Built on 4 pillars — *New Processes*, *New Infrastructure*, *New Sectors*, and *New Mindset*. **Start-up India (2016)**: 3-year tax holiday, **₹10,000 Crore Fund of Funds (managed by SIDBI)**, self-certification for 9 labor/env laws, and 80% patent fee rebate. **Stand-up India (2016)**: Bank loans from **₹10 Lakh to ₹1 Crore** to at least one SC/ST borrower and at least one woman borrower per SCB branch.

4. SEZs & PRODUCTION-LINKED INCENTIVE (PLI) SCHEME

Cue Words	Notes
Special Economic Zones (SEZs)	Duty-free enclaves under SEZ Act, 2005, treated as foreign territory for trade/duty purposes — offer tax holidays, single-window clearance, and relaxed labour compliance to boost exports.
SEZ Challenges	Criticised for land acquisition disputes, uneven regional spread, and reduced attractiveness after phase-out of income-tax holidays under the new tax regime.
Production-Linked Incentive (PLI) Scheme	Offers financial incentives (as a % of incremental sales) to manufacturers in ~14 sectors (electronics, pharma, textiles, auto, etc.) to boost domestic manufacturing and reduce import dependence. **Performance (till Sep 2025)**: Actual investment crossed **₹2 Lakh Crore**, driving incremental production/sales of **₹18.70 Lakh Crore+** and generating employment for **12.60 Lakh+** people. 2021 **Origin announcement — Union Budget 2021-22** (1 Feb 2021): unified PLI outlay of **₹1.97 lakh crore over 5 years** across **13 sectors**, pitched as a push to create manufacturing "global champions" for **Atmanirbhar Bharat**, integrate Indian manufacturers into global supply chains, build scale, and generate youth employment. Individual sector-specific PLI schemes (semiconductors, solar PV modules, white goods, etc., covered elsewhere in these notes) followed from this umbrella announcement; the sector count later expanded to ~14 (see performance figures above).
India Semiconductor Mission (ISM)	Government committed **₹76,000 Crore**; projects approved worth **₹1.52 Lakh Crore** by early 2025, across 6 initial approved projects plus 4 new units (Odisha, Punjab, Andhra Pradesh) sanctioned under a **₹4,600 Crore** outlay. **CG Semi OSAT facility** (Sanand, Gujarat) inaugurated Aug 2025 — India's first end-to-end semiconductor assembly/test pilot line, ₹7,600 Crore investment, commercial production slated for 2026. **ISM 2.0** launched in the 2026-27 Budget to deepen capabilities in equipment, materials, design, supply chains, and skilling.
SEZ Rules Amendment — Semiconductor & Electronics Boost	2025 Department of Commerce notified amendments to the **SEZ Rules, 2006** to boost semiconductor and electronics manufacturing. **Rule 5**: minimum contiguous land requirement for semiconductor/electronics-component SEZs reduced from **50 hectares to 10 hectares**. **Rule 7**: Board of Approval can relax the "encumbrance-free" land condition when land is mortgaged/leased to Central/State Government or their agencies. **Rule 53**: amended to include free-of-cost goods in **Net Foreign Exchange (NFE)** calculations. **Rule 18**: amended to allow semiconductor/electronics SEZ units to also supply into the **Domestic Tariff Area** after paying applicable duties. Following these reforms, the Board of Approval cleared two SEZ proposals: **Micron Semiconductor Technology India Pvt Ltd (MSTI)** — Sanand, Gujarat, **37.64 hectares**, ~**₹13,000 crore** investment; and **Aequs Group (Hubballi Durable Goods Cluster)** — Dharwad, Karnataka, **11.55 hectares**, ~**₹100 crore** investment, for electronics components.

5. PRIORITY SECTOR LENDING (PSL) & MSME FRAMEWORK

Cue Words	Notes
Origin of Priority Sector Lending	First used by **Morarji Desai** (Lok Sabha, 14 Dec 1967) flagging inadequate bank credit to agriculture, small-scale industry, exports. **Banking Laws (Amendment) Bill 1967** introduced 'social control' over banks; National Credit Council (July 1968) pushed banks toward priority-sector financing.
9 Categories of Priority Sector (RBI)	Agriculture; MSMEs; Export Credit; Education; Housing; Social Infrastructure; Renewable Energy; Weaker Sections; Others. 2020 RBI revision added: start-up finance (up to ₹50 Cr), solar-pump solarisation loans, and Compressed Biogas (CBG) plant loans.
PSL Targets (% of ANBC/CEOBE)	**Domestic banks/large foreign banks**: Total PSL 40%; Agriculture 18% (incl. 10% for Small & Marginal Farmers); Micro Enterprises 7.5%; Weaker Sections 12%. **RRBs & Small Finance Banks**: Total PSL **75%** (Medium Enterprises + Social Infra + Renewable Energy capped at 15% of ANBC for RRBs); Weaker Sections 15% (RRBs). **Small foreign banks (<20 branches)**: 40% total, up to 32% via export credit.
MSME Contribution to Economy (Trend)	Over 6.4 Crore enterprises; contributes ~45% of manufacturing output, ~40-48% of exports, ~28-30% of GDP; employs ~11-12 Crore people (2nd largest employer after agriculture). MSME share of All-India GDP rose from 29.34% (2014-15) to 30.27% (2018-19) (CSO data); Ministry of MSME target: 50% of GDP by 2025. New MSME definition (2020) covers ~99% of all enterprises; unified manufacturing/services distinction abolished.
Key MSME Support Schemes	**CGTMSE**: Collateral-free loans up to ₹1 Crore via SIDBI. **ECLGS** (COVID): ₹3 Lakh Crore collateral-free credit for ~45 lakh MSMEs. **SFURTI**: Clusters traditional industries/artisans for competitiveness. **ASPIRE**: Promotes rural entrepreneurship/innovation, job creation. **PMEGP**: Credit-linked subsidy under Ministry of MSME. **Udyami Mitra Portal** (SIDBI) & **MSME Sambandh**: Credit access and CPSE public-procurement monitoring respectively. All enterprises must register on **Udyam Registration Portal** (launched July 2020, self-declaration based, paperless).
Union Budget 2026-27 — SME Growth Fund & TReDS	2026 - The Finance Minister introduced a dedicated ₹10,000 Crore SME Growth Fund to create "future champions," incentivizing enterprises based on select criteria. Budget 2026-27 also proposes 4 measures to leverage the full potential of TReDS (Trade Receivables Discounting System) for MSME liquidity support.
ECLGS 5.0 (Cabinet approval, 5 May 2026)	2026 Cabinet approved **ECLGS 5.0** — a response to **liquidity stress from the West Asia crisis**. Guarantee coverage: **100% for MSMEs**, **90% for non-MSMEs and the airline sector**, provided via the **National Credit Guarantee Trustee Company Limited (NCGTC)**. **Target additional credit flow: ₹2,55,000 crore** (including **₹5,000 crore** earmarked for airlines). **Support quantum**: up to **20% of peak working capital utilised in Q4 FY26** (capped at **₹100 crore**) for MSMEs/non-MSMEs; up to **100%** (capped at **₹1,500 crore per borrower**) for airlines. **Loan tenor**: **5 years** (including **1-year moratorium**) for MSMEs/non-MSMEs; **7 years** (including **2-year moratorium**) for airlines. Scheme applies to **loans sanctioned up to 31 March 2027**.

6. HISTORICAL LICENSING MILESTONES & DISINVESTMENT EVOLUTION

Cue Words	Notes
IPR 1956 Schedule A/B/C Breakdown	**Schedule A (17 industries)**: Exclusive Central monopoly — became the base for CPSUs (grew to 254 PSUs by 1991 via nationalisation drives, 1960s-80s). **Schedule B (12 industries)**: State-led with private follow-up, under compulsory licensing. **Schedule C**: All other industries, private sector with licensing under IDR Act.
MRTP Limit — Progressive Revision	MRTP Act 1969 obligated firms with assets ≥ ₹25 Crore ("MRTP Companies") to seek Govt permission for expansion/takeovers. MRTP limit revised upward: ₹25 Cr (1969) → ₹50 Cr (1980) → ₹100 Cr (1985) — before complete abolition in NIP 1991; MRTP Act itself replaced by Competition Act 2002.
Compulsory Licensing — Numerical Decline Over Time	Licensed industries fell from all Schedule B/C industries → 64 (1985-86) → 18 (immediately post-1991 reform) → 6 (1996-97) → 5 (present). Reserved public sectors fell from 17 (1956) → 8 (1991) → 3 (nuclear energy, nuclear research/fuel-cycle, railways) → 2 (present: Atomic Energy, Railway Operations).
Disinvestment — Token vs Strategic (Historical Types)	**Token Disinvestment** (from 1991): Symbolic minority stake sales (5-10% actual, cap 49%), management control retained by Govt — criticised for not improving PSU efficiency. **Strategic Disinvestment** (from March 1999): Minimum 51% stake sale with management control transfer to a "strategic partner"; began with Modern Food Industries Ltd (MFIL), followed by BALCO, VSNL, IPCL, HZL, MUL, ITDC hotels (13 PSUs total in this phase).
National Investment Fund (NIF, Jan 2005)	Disinvestment proceeds channelised outside the Consolidated Fund of India into a permanent corpus, managed by UTI/SBI/LIC Mutual Fund AMCs. **75% of annual income** funds social-sector schemes (education, health, employment); **25%** recapitalises profitable/revivable CPSEs. 2009-2012: One-time exemption let full disinvestment proceeds (not just NIF income) fund capital expenditure under MGNREGA, Indira Awas Yojana, JNNURM, and other flagship schemes amid the global slowdown.

7. GLOSSARY: INDUSTRIAL LOCATION, COMPETITION & TECHNOLOGY TERMS

Cue Words	Notes
Greenfield vs Brownfield Location	**Greenfield**: unused/agricultural land developed afresh for a new industrial plant (also "Greenfield Investment" — a firm's spend on wholly new plant/machinery/office). **Brownfield**: a derelict, previously-industrialised site redeveloped/demolished to host a new industry.
Antitrust & Crony Capitalism	**Antitrust**: government policy curbing abuse of market power by dominant firms — including blocking anti-competitive mergers/acquisitions (India's analogue: MRTP Act → Competition Act 2002). **Crony Capitalism**: business conducted by favouring one's own family/friend network for contracts and licences rather than on merit — used pejoratively.
X-Inefficiency	The gap between a firm's actual operating cost and its theoretical minimum attainable cost, caused by poor internal coordination, weak motivation, and bureaucratic rigidity — typically afflicts large corporates that face little competitive pressure to "stay on their toes."
3G Technology	Third-generation wireless standard (ITU threshold: ≥144 Kbps data rate, practically up to 384 Kbps) enabling faster data, video, and internet access on mobile handsets via packet-switched transmission; principal standards were WCDMA, CDMA2000 1xEV-DO, and EDGE (an upgrade path for GSM networks). India earmarked the 450 MHz/800 MHz/2.1 GHz bands for 3G spectrum allocation ahead of rollout.
Economies of Scale	Cost advantages a firm gains from its scale of operation — as factory/output size increases, per-unit cost falls.
Operating Ratio	A company's operating expenses as a percentage of revenue/sales; a falling ratio signals improving management efficiency at controlling costs relative to revenue.
Subsidiary Company	A company (also "Daughter Company") owned/controlled (>50% stake) by another company, called the parent/holding company.

8. FUNDAMENTALS CHECK — PSU RATIONALE & EASE OF DOING BUSINESS

Cue Words	Notes
Rationale for Creating Public Sector Enterprises	Post-Independence rationale (Nehruvian model, IPR 1956): fill gaps left by absent/weak private capital in capital-intensive heavy industry (steel, power) and infrastructure; achieve self-reliance in core/strategic sectors (defence, atomic energy); ensure balanced regional development by locating plants in backward areas; generate employment and check concentration of economic power in private hands; earn surplus for public investment and provide goods/services at fair prices in sectors prone to natural monopoly.
Private Sector Enterprise — Basic Rationale	Driven by profit motive and market competition; relied upon for efficiency, innovation, and consumer-goods production where private capital and risk-taking were adequate — expanded sharply post-1991 LPG reforms as licensing/reservation was rolled back (see Sections 1 & 6).
Ease of Doing Business (EoDB) Index — World Bank	Annual World Bank ranking (discontinued after 2020 edition) across 10 parameters: Starting a Business, Construction Permits, Electricity, Property Registration, Credit, Investor Protection, Taxes, Trade Across Borders, Contract Enforcement, Insolvency Resolution. **India's rank improved sharply**: 142nd (2014) → 130th (2016) → 100th (2017) → 77th (2018) → **63rd (2020, last published ranking)** — driven by reforms in insolvency (IBC 2016), GST rollout, single-window clearances, and construction-permit digitisation. World Bank discontinued the EoDB report in Sep 2021 (data-integrity issues in the 2018/2020 editions) and replaced it with a new **"Business Ready" (B-READY)** assessment framework from 2024 onward.

9. MSME DEFINITION (ATMANIRBHAR REVISION), PORTALS & SUPPORT INSTITUTIONS

Cue Words	Notes
Revised MSME Classification (1 June 2020 Cabinet decision, Atmanirbhar package)	Definition changed under the Atmanirbhar Bharat package; the earlier separate treatment of Manufacturing vs Services was abolished — a single composite Investment + Turnover criterion now applies to Manufacturing and Services alike. Classification Micro Small Medium Manufacturing and Services Investment < ₹1 cr AND Turnover < ₹5 cr Investment < ₹10 cr AND Turnover < ₹50 cr Investment < ₹50 cr AND Turnover < ₹250 cr Verbatim clarification: "It has also been decided that the 'Turnover' with respect to exports will not be counted in the limits of turnover for any category of MSME units whether Micro, Small or Medium. This will help in bringing more units under MSME classification even if their exports are more." (Note: these are the 2020 revised thresholds; the medium-enterprise ceiling was subsequently raised again in later Budgets — treat the 2020 table as the Atmanirbhar-stage figure.)
Dereservation of MSME Products	**No items are reserved now for exclusive MSME production** (the erstwhile reservation list stands fully dereserved).
MSME Economic Footprint (older prelims figures)	**30% of GDP & 45% of total exports | 25% of employment | only 8% of MSMEs get formal credit.** (Older figures; superseded by the fuller trend data in Section 5 — MSME share of All-India GDP 29.34% in 2014-15 → 30.27% in 2018-19, ~45% of manufacturing output, ~40-48% of exports, ~11-12 crore employed. The **8% formal-credit penetration** figure is additional and not repeated elsewhere.) **Public Procurement Policy for MSMEs** exists mandating procurement from MSEs by Government/CPSEs.
MSME Portals (full list)	**MSME Samadhaan** — delayed payment portal. **MSME Sambandh** — public procurement (monitoring). **MSME Sampark** — connecting jobseekers and recruiters. **Udyam Sakhi** — for women entrepreneurs. **Udyam Mitra** — by **SIDBI**, to provide improved accessibility of credit to MSMEs.
TReDS (Trade Receivables Discounting System)	Launched by RBI in 2014. Addresses the working-capital need of MSMEs (discounting of trade receivables). Companies with turnover > ₹500 cr must be registered on the TReDS platform.
India Inclusive Innovation Fund (IIIF)	By Ministry of MSME. Focus on India's poor — IIIF would back enterprises developing innovative solutions for poor citizens. Balances social and financial returns; employment focus.
SIDBI — MSME Financing Institution	Established 1990 through an Act of Parliament; a DFI headquartered in Lucknow; operates under the Department of Financial Services. Mandate: facilitate credit flow to MSMEs. Not fully owned by GoI. Sr. No. Name of the Shareholder No. of Shares Held % of Holding 1 State Bank of India 89,000,000 16.73 2 Government of India 81,922,031 15.4 3 Life Insurance Corporation of India 75,798,889 14.25 4 National Bank for Agriculture & Rural Development 53,192,203 10
IBC Default Threshold Shield for MSMEs	Insolvency under IBC 2016 can be initiated only when the minimum amount of default is ₹1 crore — amended in the Atmanirbhar package (earlier ₹1 lakh) => shields MSMEs from being dragged into insolvency.

10. IIP, EIGHT CORE INDUSTRIES, ASI & PMI — INSTITUTIONAL DETAIL

Cue Words	Notes
IIP — Compiling Agency & Release Cycle	Indicates the performance of various industrial sectors of the economy. Base year 2011-12; Manufacturing (77%) > Mining (14%) > Electricity (8%). Calculated by NSO (earlier CSO, but now by NSO after the merger of CSO and NSSO) — every month, released on the 12th-13th of the month.
Index of Eight Core Industries — Weight & Publisher	Constitutes 40% of the weight of items in the IIP; it is a production volume index giving an advance indication released before the IIP. Released monthly by the Office of the Economic Adviser (OEA), DPIIT, Ministry of Commerce & Industry. Weights: Refinery Products (28%), Electricity (20%), Steel (18%), Coal (10%), Crude Oil (9%), Natural Gas (7%), Cement (5%), Fertilizers (2.6%) — (rounded prelims version of the precise weights in Section 1's fact sheet). Source note (transcribed as-is): "Recently, tobacco removed and palm oil added in list."
Annual Survey of Industries — older attribution	Source note: "by CSO"; only organized-sector industries surveyed. (Older attribution; superseded by Section 2 — ASI is now compiled by NSO (MoSPI) after the CSO-NSSO merger, under the Collection of Statistics Act 2008.)
PMI — Compiler & Nature (older attribution)	Indicator of business activity in **both the manufacturing and services sectors**. Compiled by the **Japanese firm Nikkei and Markit Economics** — a **survey-based measure**: asks respondents about **changes in their perception** about key business variables. **Released at the start of every month** => a good **leading indicator** of economic activity. (Older attribution; the sponsorship later passed to **IHS Markit / S&P Global** as noted in Section 2.)
OBICUS — RBI's Industrial Survey	**Order Books, Inventories and Capacity Utilisation Survey (OBICUS)**: a **quarterly survey by RBI of the manufacturing sector**. Provides insight into **demand conditions** faced by the manufacturing sector => covers **2,500 public and private limited companies** in manufacturing. **Company-level data is never disclosed** => confidential. RBI's allied surveys: **Consumer Confidence Survey**, **Inflation Expectation Survey**.
Dwarf Firms (Economic Survey concept)	Firms that are both — small (less than 100 workers) AND older than 10 years. Account for half of all organised manufacturing by number, but have a small share in net value added and employment.
Total Factor Productivity	**TFP = GDP divided by the weighted average of labour and capital input.** Gives **real output growth**.

11. SECTORAL PROFILES — ELECTRONICS, PHARMA, MEDICAL DEVICES, MINERALS & SICK-UNIT REVIVAL

Cue Words	Notes
National Policy on Electronics, 2019	**Aim**: Electronics System Design and Manufacturing (**ESDM**) sector turnover of **$400 Bn by 2025**; generate **1 crore jobs** in India. **Objectives**: domestic manufacturing; promote industry-led R&D and innovation; create a **Sovereign Patent Fund (SPF)**; improve national cyber-security profile. **Special thrust on** — Fabless Chip Design industry; Medical electronics devices industry; Automotive electronics industry; Power electronics for mobility and strategic electronics industry.
Indian Pharma Industry	**3rd worldwide in volume, 13th rank by value.** **71% market share of generic drugs.** **100% FDI under automatic route for greenfield** pharma. **74% FDI under automatic route for brownfield** pharma, and thereafter through government approval.
National Medical Devices Promotion Council (NMDPC)	Set up under DPIIT, Ministry of Commerce & Industry; headed by the Secretary of DPIIT. Will support domestic manufacturing, reduce dependence on imports to meet local demand, and boost exports.
National Mineral Policy, 2019	Pertains to **non-coal & non-fuel minerals**. To **increase production of major minerals by 200% in 7 years** => tied to **Make in India**. **Proposals**: Exclusive Mining Zones (in-principle statutory clearances for granting mining lease); incentivises private investments — **Right of First Refusal at auction**; identify critical fragile ecosystems => **inviolate areas**; encourage **merger and acquisition of mining entities**; long-term export-import policy for the mineral sector; **harmonising mining royalty/taxes with the rest of the world**; welfare/rehabilitation of mining-affected people; **inter-generational equity** in mineral resource exploitation.
Hindustan Urvarak and Rasayan Limited (HURL) — sick-unit revival	**Joint venture of Coal India Ltd + NTPC + IOCL**. For the **revival of 3 sick urea units**. Will establish state-of-the-art, environment-friendly and energy-efficient **natural gas-based new fertiliser complexes**.
Samarth Udyog Bharat 4.0	By the Ministry of Heavy Industries & Public Enterprises. An Industry 4.0 initiative => 4th industrial revolution. Tech solutions to make Indian manufacturing units ready for Industry 4.0 by 2025.

12. TEXTILE SECTOR

Cue Words	Notes
Harmonized System (HS) Code for Khadi	**HS Code is a 6-digit ID code by the World Customs Organization**. **MoCI allocates the HS code** — (**8-digit code in India** — extra 2 digits for more detailed classification). A **separate HS code for Khadi** => will boost Khadi exports.
National Technical Textiles Mission	**Approved by CCEA**; will be operational under the **Ministry of Textiles** => **4 components in 4 years**. Aims to position the country as a **global leader in technical textiles** (market size of **$40 Bn by 2024**). Currently **$16 Bn (6% of the global $250 Bn technical textiles market)**. **Technical textiles** are functional fabrics having application across various industries. **12 segments** — Agrotech, Meditech, Buildtech, **Mobiltech (seatbelts, airbags etc.)**, Clothtech, Oekotech, Geotech, Packtech, Hometech, Protech, Indutech, Sportech.
Project SU.RE	By the Textile Ministry + Clothing Manufacturers Association of India (CMAI) etc. The Indian apparel industry's largest commitment to move towards sustainable fashion.

13. COMPETITION, STANDARDS, QUALITY MARKS & IPR ARCHITECTURE

Cue Words	Notes
Competition Commission of India (CCI)	**Statutory body — Chairperson + 6 members**, appointed by the **Central Government**. Under **MoCA (Ministry of Corporate Affairs)**. **CCI administers only the Competition Act, 2002** (which replaced the **MRTP Act, 1969**). Established by the Competition Act, 2002; **NCLAT is the appellate tribunal for CCI** (as also for NCLT and IBBI); appeal from NCLAT lies to the **Supreme Court**.
Bureau of Indian Standards (BIS)	**Statutory body — BIS Act**. Under **MoCAFPDS (Ministry of Consumer Affairs, Food & Public Distribution)**. Functions: **standardisation, marking & quality certification of goods**. BIS-certified **Collection and Purity Testing Centres (CPTCs)** are used under the Gold Monetization Scheme, 2015.
Quality & Certification Marks	**Fruit Product Order (FPO) Mark** — issued by the **Ministry of Food Processing** for processed food products **since 1955**; **mandatory for all processed food products**; follows the **Food Safety and Standards Act, 2006**. **Ecomark** — issued by **BIS (MoConsumerAffairs)** for products conforming to a set of standards aimed at **least impact on the ecosystem, since 1991**; described also as a **voluntary labelling service by BIS** for quickly identifying environment-friendly products. **AGMARK** — on agricultural products as per standards approved by the **Directorate of Marketing and Inspection** (attached office of the Dept. of Agriculture, Cooperation & Farmers Welfare under MoAgri&FW), under the **Agricultural Produce (Grading and Marking) Act, 1937 (amended 1986)**.
WIPO Agreements (industrial IP classification)	**Nice Agreement** — trademarks. **Vienna Agreement** — for marks that consist of **figurative elements**. **Locarno Agreement** — for **industrial designs**.
Utility Patents & India's Position	**Utility Patent** => exclusive right granted for an invention — allows the right holder to prevent others from commercially using the protected invention without authorisation for some time; aka **petty patent or innovation patent**. The **Indian Patents Act, 1970 denies patents for incremental innovations** => **India DOES NOT offer protection under utility patents**.
Patent Prosecution Highway (PPH)	Programme by the **Indian Patent Office** with patent offices of other countries => providing **accelerated patent prosecution procedures by sharing information**. **Initially with Japan for a 3-year period.**
L2Pro India (Learn to Protect, Secure and Maximise Your Innovation)	Website and app **launched by DPIIT**. **E-learning platform to understand IPRs.**

14. INVESTMENT PROMOTION & STARTUP INSTITUTIONAL BODIES

Cue Words	Notes
Invest India	India's **official agency dedicated to investment promotion and facilitation**; the **National Investment Promotion and Facilitation Agency**. **Not-for-profit single-window facilitator** for overseas investors **and** Indian investors aspiring to invest in foreign locations. Established **2008 under DPIIT, MoCommerce&Industry**. Shareholding: **Govt 49% (DPIIT 43.5% + 19 states 5.5%)**; the rest divided between **CII, FICCI, NASSCOM** => therefore **Invest India is a private body**. **Business Immunity Platform (BIP)** — by Invest India; comprehensive resource to help businesses and investors get **real-time updates on India's response to COVID-19**.
India Investment Grid	**Under DPIIT.** **Single-window platform for investment opportunities in India.**
National Startup Advisory Council	Suggests measures to **promote innovation in all sectors of the economy**. **Chaired by the Minister of Commerce and Industry.**
Angel Tax & Startup Exemption	**Angel Tax** — levied on angel investments **more than the fair market valuation** of the company — to **check money laundering**. **Exemptions** — startups/companies with **< ₹100 cr turnover AND < 10 years old**. Start-up loans up to **₹50 crore** qualify as **Priority Sector Lending**.
National Productivity Council (NPC) — founding detail	Founded in 1958, registered as a non-profit Society under the Societies Registration Act, 1860; autonomous body under DPIIT, MoCI. Part of the Tokyo-based Asian Productivity Council (APC); promotes productivity culture in India.
Development Banks — Industrial Finance Lineage	**IFCI (Industrial Finance Corporation of India)** => **first development bank of India, 1948**. **1991 — Narasimham Committee**: development banks disbanded and converted into commercial banks. The Finance Minister has (recently) announced setting up a **new development bank**.

15. CONSUMER PROTECTION ACT, 2019 — CCPA, CDRC & E-COMMERCE RULES

Cue Words	Notes
Scope & Definition of Consumer	**Replaces the Consumer Protection Act, 1986** (COPRA). Defines a **consumer** as excluding a person who obtains a good **for resale**, or a good/service **for a commercial purpose**. Related: an SC judgement held that a **farmer who farms under a contract of a company is a consumer** and gets protections under the Consumer Protection Act, 1986.
The Six Consumer Rights	To be protected against marketing of goods hazardous to life and property. To be informed of quality, quantity, potency, standard and price of goods & services. Assured access to a variety of goods & services at competitive prices. Right to be heard. Redressal against unfair or restrictive trade practices. Right to consumer awareness.
Central Consumer Protection Authority (CCPA)	Created to promote, protect and enforce the rights of consumers. Has an investigation wing headed by a Director General of Investigation.
Consumer Disputes Redressal Commission (CDRC) — Pecuniary Tiers	To be set up at **district, state and national** levels; **final appeal lies with the Supreme Court**. **District CDRC**: complaints where value of goods & services is **< ₹1 crore**. **State CDRC**: **₹1 crore – ₹10 crore**. **National CDRC**: **> ₹10 crore**.
Central Consumer Protection Council	An **advisory body** on consumer issues. **Headed by the Union Minister of Consumer Affairs, Food & Public Distribution**; also includes the **State Minister of consumer affairs from 2 states of each region**.
Obligations on E-Commerce Companies	Must provide information on **return, refund, etc., and the country of origin**. Must **appoint a grievance redressal officer**, who must **acknowledge a complaint within 48 hours**. **Cannot manipulate prices**.

📰 Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) 2025

Cue Words	Notes
Cabinet Approval — Scale & Purpose	Approved on **26 November 2025** — outlay of **₹7,280 crore**. India's **first-ever integrated REPM manufacturing initiative**, targeting **6,000 Metric Tons Per Annum (MTPA)** capacity. REPMs are critical for **EVs, renewable energy, electronics, aerospace, defence** — India currently **imports nearly all its REPM demand**, expected to **double by 2030**.
Scheme Structure	**₹6,450 crore** in **sales-linked incentives** (over 5 years) + **₹750 crore capital subsidy** for setting up manufacturing facilities. Capacity allocated to **5 beneficiaries** via **global competitive bidding** (up to **1,200 MTPA each**). **Total scheme duration: 7 years** (2-year gestation + 5-year incentive disbursement). Supports **Atmanirbhar Bharat** and India's **Net Zero 2070** commitment.