ROLE OF GOVERNMENT OF INDIA

Introduction:

The adoption of the New Economic Policy in 1991 saw a landmark shift in the Indian economy,
as it ended the mixed economy model and license raj system - and opened the Indian economy to
the world. Besides these developments and reforms, it is imperative to bear in mind that in order
to tap the highest potential of the economy and ensure good governance, an optimal level of
synergy is required between the central and state government. This will not only add strength to
our cooperative federal structure but will also strengthen India’s economy. Initiatives such as –

• Goods and Services Tax (GST)

• Insolvency and Bankruptcy Code (IBC)

• Startup India

• Digital India

These, among others, have helped the Indian economy jump 65 ranks (in the last four years) in
the World Bank’s Ease of Doing Business Report. These measures cemented India’s reputation
as one of the few bright spots in an otherwise grim global economy. India is among the fastest
growing major economies, underpinned by a stable macro - economy with declining inflation
and improving fiscal and external balances. Not only that, it was also one of the few economies
enacting major ‘structural reforms’, that have positioned India as a competitive player in the
international market.

In Agricultural Sector:

Under the guidance of Hon’ble Prime Minister Shri Narendra Modi, enthusiastic and positive
results of the sustained efforts made for the betterment of agriculture sector and farmers are
visible. The Modi government is committed for the welfare of farmers. As a result of which,
there has been a qualitative improvement in their lives. For the development of the country,
Modi government has set new standards for transparency. Under the guidance of Prime Minister,
the government has transformed the targets meant for the implementation of farmers’ welfare
schemes in a mission mode and time bound manner. Our government has laid the foundation of a
modern and future oriented India with new dimensions, innovations and reformist approach to
good governance. Modi government has been successful in bringing about awareness amongst
farmers through new initiatives taken for the development of agriculture sector in the country. In
this tenure, there has been a concerted and strong effort to bring qualitative changes in the life of
farmers and rural areas.

The government has made the use of neem coated urea mandatory in order to reduce the cost of
agriculture and enhance the nitrogen utility competence. Since it has led to enhancement in the
productivity thereby reducing the cost of agriculture, it has also extended a helping hand in
preventing its misuse in the non-agriculture sector. Organic farming has been linked with
Paramparagat Krishi Vikas Yojana (PMKY) for sustained agricultural development and soil
health, including the in-situ management of rice straw. The Pradhan Mantri Krishi Sinchayee
Yojana (PMKSY) is a very important scheme to ensure proper water management in agriculture
practices. After making an extensive study of the previous schemes and reforming them, it has
initiated the world’s largest farmer friendly Pradhan Mantri Fasal Bima Yojna and Weather
Based Crop Insurance Scheme in 2016. These schemes provide extensive coverage for every sort
of risks involved in the agriculture sector.

In addition to farming, the government is also emphasizing on livestock, fisheries and

development of water bodies. The Rashtriya Gokul Mission, based on the conservation and
development of indigenous bovine species, is an integral part of the overall development of
agriculture sector. This will benefit a lot of small and marginal farmers including landless
agriculture labourers who possess these indigenous species of bovines. It is a matter of great
pride that 161 indigenous species across the country have been registered and for this purpose
ICAR is actively working. The development of fish production development, including marine
and freshwater fishes, is improving the lives of the fishermen community. Fish production has
achieved more growth rate than all other areas of agriculture.

To improve the economic condition of the farmers, Prime Minister Narendra Modi has set a
target of doubling the income of farmers by 2022. For the first time in the country, a prime
minister has put forward a target for the overall wellbeing of the farmers. In pursuance of this
vision, the Ministry of Agriculture and Farmers’ Welfare will adopt a concrete strategy, based on
the recommendations of the constituted committee to achieve the goal of doubling the income of
farmers till August 2022 when our country will be celebrating 75th Independence Day.

In Industrial Sector:

The Department for Promotion of Industry and Internal Trade (DPIIT) was established in the
year 1995 and was reconstituted in the year 2000 with the merger of the Department of Industrial
Development. Earlier, separate Ministries of Small Scale Industries & Agro and Rural Industries
(SI &A& RI) and Heavy Industries and Public Enterprises (HI&PE) were created in October,
1999. The department was earlier called Department of Industrial Policy & Promotion and was
renamed as DPIIT in January, 2019. In 2018, matters related to e-commerce were transferred to
the Department and in 2019, the Department has been given charge for matters related to Internal
Trade, welfare of traders and their employees and Startups. The role of DPIIT is to
promote/accelerate industrial development of the country by facilitating investment in new and
upcoming technology, foreign direct investment and support balanced development of industries.

Make in India initiative was launched on 25th September 2014, along with action plans for 25
sectors with the objective of facilitating investment, fostering innovation, building best in class
manufacturing infrastructure, making it easy to do business and enhancing skill development.
The initiative is further aimed at creating a conducive environment for investment, modern and
efficient infrastructure, opening up new sectors for foreign investment and forging a partnership
between government and industry through positive mindset. MII initiatives have made
significant achievements and has been reviewed now, focusing on 27 sectors under Make in
India 2.0. DPIIT is coordinating action plans for 15 manufacturing sectors, while Department of
Commerce is coordinating action plan for 12 service sectors. DPIIT is making continuous efforts
for Investment Facilitation including utilizing the services of Invest India and implementation of
MII action plans to identify potential investors. Support is being provided to Indian Missions
abroad and State Governments for organizing events, summits, road-shows and other
promotional activities to attract investment in the country under the MII banner. Investment
Outreach activities are being carried out for enhancing International co-operation for promoting
FDI and to improve Ease of Doing Business in the country.

Startup India is a flagship initiative of the Government of India, intended to catalyze startup
culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
The Startup India Action Plan was launched on 16th January, 2016 with the objective of
supporting entrepreneurs, building up a robust startup ecosystem and transforming India into a
country of job creators instead of job seekers. DPIIT acts as the nodal Department for
coordinating the efforts of all central governmental departments and state governments in
carrying this plan forward.

DPIIT is the nodal department for the promotion of productivity and quality in the industrial
sector. The National Productivity Council (NPC) represents India in the Tokyo based Asian
Productivity Organization (APO), of which the Government of India is a founder member and
implements APO programmes/activities relating to India. NPC undertakes productivity
augmentation through domain specific consultancy, training, workshops, seminars and
conferences for Government, Public and Private sectors, Productivity related research,
Monitoring & Evaluation of various government schemes & projects and information
dissemination through collaboration with APO. The Quality Council of India (QCI), another
important organization under this Department, promotes adoption of quality standards relating to
Quality Management Systems (ISO 9001 Series), Environment Management Systems (ISO
14001 Series), Food Safety Management Systems (ISO 22000 Series), Product certification and
inspection bodies through the accreditation services provided by National Accreditation Board
for Certification Bodies (NABCB).

According to the Allocation of Business (AOB) Rules, as updated, the Department is responsible
for determining the Industrial Policy at Central Government level. The Department handles
matters related to protection of Intellectual Property Rights (IPR) in fields of Patents,
Trademarks, Copyrights, Industrial Designs and Geographical Indications of Goods and
administers Acts, Regulations and Rules made thereunder. The department also handles matters
related to Foreign Direct Investment (FDI) and investment by NRIs, and undertakes promotion
of investment for industrial development of the country.

In Service Sector:

The Government of India recognises the importance of promoting growth in services sector and
provides several incentives across a wide variety of sectors like health care, tourism, education,
engineering, communications, transportation, information technology, banking, finance and
management among others. The Government of India has adopted few initiatives in the recent
past, some of these are as follows:

Under Union Budget 2021-22, the government allocated Rs. 7,000 crore (US$ 963.97 million) to
the BharatNet programme to boost digital connectivity across India.

In May 2021, the Ministry of Commerce and Industry announced that India received an FDI
inflow of US$ 81.72 billion, the highest FDI during FY 2020-21.

On January 15, 2021, the third phase of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was
launched in 600 districts with 300+ skill courses. Spearheaded by the Ministry of Skill
Development and Entrepreneurship, the third phase will focus on new-age and COVID-related
skills. PMKVY 3.0 aims to train eight lakh candidates.

In January 2021, the Department of Telecom, Government of India, signed a MoU with the
Ministry of Communications, Government of Japan, to strengthen cooperation in the areas of 5G
technologies, telecom security and submarine optical fiber cable system.

On November 4, 2020, the Union Cabinet, chaired by the Prime Minister, Mr. Narendra Modi,
approved to sign a memorandum of understanding (MoU) between the Ministry of
Communication and Information Technology and the Department of Digital, Culture, Media and
Sports (DCMS) of United Kingdom Government to cooperate in the field of
telecommunications/information and communication technologies (ICTs).

In September 2020, the government announced that it may infuse Rs. 200 billion (US$ 2.72
billion) in public sector banks through recapitalization of bonds

In the next five years, the Ministry of Electronics and Information Technology is working to
increase the contribution of the digital economy to 20% of GDP. The government is working to
build cloud-based infrastructure for collaborative networks that can be used for the creation of
innovative solutions by AI entrepreneurs and startups.

On Independence Day 2020, Prime Minister Mr. Narendra Modi announced the National Digital
Health Mission (NDHM) to provide a unique health ID to every Indian and revolutionise the
healthcare industry by making it easily accessible to everyone in the country. The policy draft is
under ‘public consultation’ until September 21, 2020.
Government of India has launched the National Broadband Mission with an aim to provide
Broadband access to all villages by 2022.

By 2023, healthcare industry is expected to reach US$ 132 billion. India’s digital economy is
estimated to reach US$ 1 trillion by 2025. By end of 2023, India’s IT and business services
sector is expected to reach US$ 14.3 billion with 8% growth. The implementation of the Goods
and Services Tax (GST) has created a common national market and reduced the overall tax
burden on goods. It is expected to reduce costs in the long run-on account of availability of GST
input credit, which will result in the reduction in prices of services.