Industry Status

Subject – Economy

Context – Industry status will give real estate sector a boost

Concept –

The term ‘industry status’ has not actually been specifically defined in any legislation in India.
Conferring industry status basically entails an inclusion in the State/Central industrial policy.
Getting loans at lower interest rates, enabling large investors to be financing partners, and allowing developers refinance their existing debts are among the immediate benefits.
Affordable housing segment received industry status in 2018.
Two instances of State governments conferring industry status reported recently –
- Uttar Pradesh government (reported on May 12) has accorded ‘industry status’ to the warehousing and logistics sector.
- Mizoram became the first State to accord industry status to sports.
With industry status, State and Central agencies comprehend and consider a sector as a separate and cohesive one, with special schemes and subsidies commensurate with its distinct demands and requirements.
Broadly, sectors that have been conferred industry status are also privy to legal and procedural benefits such as capital and interest subsidies, single window/fast track clearance processes for licences, exemptions or relaxations from stamp duty, tariffs and other duties.