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ARTICLE · 13 OCTOBER 2026

Industrial Licence In India: Who Needs It?

Maheshwari & Co. Advocates & Legal Consultants
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Industrial licensing in India serves as a critical regulatory mechanism for manufacturing operations in sensitive sectors affecting national security and public safety. While economic liberalization has reduced licensing requirements for most industries, businesses in defence, hazardous chemicals, and strategic sectors must navigate mandatory approval processes under the Industries (Development and Regulation) Act, 1951.

IndiaCorporate/Commercial Law
Anushrut Singh Rajawat
Anushrut Singh Rajawat

Introduction

Industrial Licence is an important regulatory approval which allows an entity to commence the manufacturing of products falling within the ambit of notified industries that require the licence. This framework is primarily governed by Section 11 of the Industries (Development and Regulation) Act, 1951 (“IDRA”) and applicable policies and notifications brought in effect by the central government.

The objective behind the regulatory requirements in the industrial and manufacturing sector is to address national security, environmental concerns, strategic interests and public safety. Industrial licence is a very important aspect of such regulatory requirements.

An industrial licence is required by all the industries that fall within the ambit of the list of industries that require a mandatory industrial licence, the list broadly covers the industries which work in defence and strategic products, hazardous chemicals and other such industries that affect public safety and

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