Indian Economics 2

Congress (I) came into power in January, 1980 and announced its industrial policy on 23rd July, 1980. The Minister for Industry endorsing the philosophy of 1956 industrial policy announced certain major concessions and relaxations to help the growth of small, medium and large-scale enterprises with the objectives of modernization, expansion and development of backward areas. He-further stressed, “Government is determined to promote such a form of industrialization in the country which can generate economic viability in villages. Hand looms, handicrafts, khadi and other village industries will receive greater attention to achieve a faster rate of growth in the villages.” The emphasis was also laid on the balanced and harmonious development of all sectors of the economy. The industrial policy statement further stressed,” While making all efforts towards integrated industrial development, it is proposed to promote the concept of economic federalism with the setting up of a few nucleus...

  The Janta Government announced a New Industrial Policy by way of a statement in the parliament in 1977. It advocated the growth of small scale and cottage industries as a remedy to widespread problem of unemployment and regional inequalities in industrial development. The main elements of this policy are discussed below: 1.  Emphasis on cottage and small scale industries: The main feature of the Industrial Policy, 1977 was on the effective promotion of cottage and small scale industries that were to be widely dispersed over rural areas and small towns. The keynote of the policy was “whatever can be produced by the small scale and cottage industries must only be so produced.” Measures for promotion of cottage and small-scale industries under the 1977 Industrial Policy included; (i) Increase in the number of items reserved for exclusive production in the small scale sector from around 180 earlier to 504. (ii) The Government would introduce special legislation for protecting th...

In a short period of operation of the 1948 Industrial Policy, some significant changes took place in the economic and political spheres that called for changes in industrial policy as well. The country had launched a programme of planned economic development with the first five-year plan. The second five- year plan gave high priority to industrial development aimed at setting up a number of heavy industries such as steel plants, capital goods industries, etc., for which direct government participation and state involvement was needed. Further in December 1954, the Parliament adopted the ‘Socialistic Pattern of Society’ as the goal of economic policy which called for the state or the public sector to increase its sphere of activity in industrial sector and thus prevent concentration of economic power in private hands. In view of all these developments, a new industrial policy was announced in April 1956.  The main features of this Industrial Policy Resolution of 1956 were as follows...

INDUSTRIAL POLICY OF 1948 After having attained independence, the Government of India declared its first Industrial Policy on 6th April, 1948.  The Industrial Policy 1948 was presented in the parliament by then Industry Minister Dr. Shyama Prasad Mukherjee. The main historical importance of this policy is that it  ushered India in the system of Mixed Economy. Salient Features of Industrial Policy, 1948 Four Fold Classification of Industries Under this policy, the large industries were classified in four categories viz. Strategic Industries, Basic / Key industries, Important Industries and other industries which respectively referred to Public Sector; Public-cum-Private Sector; Controlled Private Sector and Private & Cooperative sector. They have been discussed below: Strategic Industries (Public Sector) This category included three industries in which Central Government had monopoly. These included Arms and ammunitions; Atomic energy and Rail transport Basic / Key Industri...

Let us make an in-depth study of the positive and negative features of industrial growth during plan periods. Positive Features of Industrial Growth during the Plan Period: The trend in industrial growth over about 60 years appears to be impressive. During this period, both the pattern and the structure of Indian industries have undergone a significant change. 1. Significant Growth Rate:-  The trend in industrial production in India shows a compound growth rate. From the 50s to the mid- 60s, there was a significant acceleration in the industrial growth. It declined to a very low level in 1966-70. This period was marked by recession in Indian industries. However, industrial production started picking up after the mid-70s. Still then, the recovery was not high enough.  The decade of 1980s, however, showed a remarkable growth of the industrial sector following liberalization  measures introduced in the mid-1980s, But the decade of 1990s did not augur well. The earl...