The industrial policy since 1991 has focused on deregulation, discontinuation of licensing requirements, removal of conditions for expansion of large scale industries, de‑reservation of industrial sectors for SMEs (small and medium enterprises), encouragement to competition, removal of restrictions on import of foreign technology and encouragement to foreign investment in industries. These policies have been pursued and deepened. Some initiatives have been taken in recent years to further simplify the policy. For example, in 2009, in the policy for import of foreign technology, the limits on payments for royalty, lump sum fee for transfer of technology, use of trademark/brand name, etc., were done away with and such payments were brought under the automatic route, without any requirement of Government approval. To further encourage technology inflows into the country, the condition for prior approval in case of existing joint ventures/technical collaborations in the same "field" has been removed with effect from 1 April 2011. India has also prepared a discussion paper on National Manufacturing Policy and invited suggestions from stakeholders.
The Micro, Small and Medium Enterprise Development (MSMED) Act 2006 redefined micro, small and medium enterprises on the basis of the level of investment. The Act provides for facilitating the promotion and development of micro, small and medium enterprises and enhancing their competitiveness. The thrust of reforms is to make MSMEs globally competitive through technological upgradation, skill development, a cluster development approach, etc. The MSME sector now contributes significantly to manufacturing output, employment and exports.31
The disinvestment policy of the Government is aimed at improving corporate governance, and bringing about greater transparency, accountability and market discipline within the central public sector enterprises (CPSEs). The current policy was adopted in November 2009 which has the following approach to disinvestment: (i) already listed profitable CPSEs (not meeting the mandatory shareholding of 10%) are to be made compliant by "Offer for Sale" by Government or by the CPSEs through issues of fresh shares or a combination of both; (ii) unlisted CPSEs with no accumulated losses and having earned net profit in the three proceeding consecutive years to be listed; (iii) follow‑on public offer would be considered in respect of profitable CPSEs having 10% or higher public ownership, taking into consideration the need for capital investment of CPSE, on a case to case basis. The Government could simultaneously or independently offer a portion of its equity shareholding in conjunction; and (iv) disinvestment to be considered on merits and on case‑to‑case basis since each CPSE has a different equity structure, financial strength, fund requirement, sector of operation and factors that do not permit a uniform pattern of disinvestment.
India is continuing efforts towards simplifying and streamlining IPR regulations. The Trademark Amendment Bill 2010 was passed by the Parliament to align the Indian Trademark statute with the provisions of the Madrid Protocol. In addition, the Office of the Controller General of Patents, Designs and Trade Marks has now made the trademarks database freely accessible. The Traditional Knowledge Digital Library (TKDL) MOU have been signed with the European Patent Office (EPO) and the USPTO in 2009, with the UKIPO, Canadian Intellectual Property Office (CIPO), Intellectual Property Australia and Japan Patent Office in 2011.