The government's initial draft industrial policy targets $1 trillion gross value addition in the manufacturing sector by 2025.
The blueprint of the policy is prepared by the department for promotion of industry and internal trade (DPIIT).
The policy envisages setting up business enterprises which are globally competitive and can create gainful employment and sustainable livelihoods, an official told PTI.
The draft industrial policy involves creating an industry which is armed with innovation, technology as well as financially sustainable and eco friendly, the benefits of which can be shared with all sections of the society, official added.
The initial draft policy is being circulated to seek views of different ministries and departments.
The policy would work in tandem with the Skill India Mission to improve employability of future workforce, and with the foreign trade policy to enhance India's share in global merchandise exports.
It would also enable harmonious implementation of macro-fiscal and monetary policies and ensure that incentive regime for industry is competitive.
Further, it will work to revive investments into industry and manufacturing with a balanced focus on both the quantity and quality of investments.
The draft has also proposed a detailed implementation mechanism of the policy under which it has suggested setting up of a national industrial competitiveness council and a steering committee.
The new industrial policy was prepared and sent to the cabinet by the department last year but some new suggestions were made and now it is being reworked by the DPIIT.
This will be the third industrial policy after the ones released in 1956 and 1991. It will replace the industrial policy of 1991 which was prepared in the backdrop of the balance of payments crisis.
(With PTI inputs.)