The Department for Promotion of Industry and Internal Trade (DPIIT)is working on a new industrial policy that proposes to increase financing sources for industry and a scheme for promoting the Made in India brand, sources said.

It has suggested various ways for wider access to finance for industry such as setting up of a development finance institution to provide finance at competitive rates and considering using some part of foreign exchange reserves for such funding.

The draft — Statement on Industrial Policy 2022 — Make in India for the world — has been circulated to different ministries for their views and comments.

The proposed policy, sources said, is aimed at addressing issues and challenges of the industry through certain policy measures to foster and create an innovative and competitive industrial ecosystem in the country.

The draft has identified six objectives such as the focus on competitiveness and capability, economic integration and moving up the global value chain, promoting India as an attractive investment destination, nurturing innovation and entrepreneurship, and achieving global scale and standards.

Sources said that the proposal also includes the implementation of an integrated investment promotion strategy by involving district, state, national, and international market synergies.

About the scheme for the Made in India brand, they said it could serve as a platform for manufacturers to demonstrate local value addition which can enhance the country’s credibility as a source of quality products.

Other suggestions in the proposed policy include providing performance-based loans and incentives for innovation and green growth, leveraging fintech, encouraging MSMEs to choose the corporate bond market; and accepting intellectual property rights as collaterals for loans.