Features of India’s industrial policy Features of India’s industrial policy

Rajiv

Roll No. 28

M.B.A. 1st Sem.

Meaning of ‘‘industrial policy’’ 1.As an important document. 2.Government’s policy towards industries.

Why industrial policy 1.To prevent the imbalances In the development of industries. 2.To demarcate areas among the public, and private sector. 3.To direct the flow of scarce resources.

4.To prevent the wasteful use of scarce resources.

INDIA’S INDUSTRIAL POLICY FROM 1948 TO 1991

Industrial Policy, 6 April 1948 Industrial Policy Resolution,30 April

1956 Industrial Policy 23rd 1977 Industrial Policy July 1980 Industrial Policy 1991

Industrial policy -1948

MAIN FEATURES

1.Importance of public and private sector

2.Division of industrial sector (i). Industry where central had monopoly

a. Arms and ammunition

b. Atomic energy

c. Rail transport

(ii). Mixed sector

1. Coal2. Iron and Steel. 3. Aircraft manufacture. 4. Shipbuilding. 5. Manufacture of telephone, telegraph and wireless apparatus, excluding radio receiving set.6. Mineral oils.

(iii). The field of government control

1. Salt 2. Automobiles and tractors 3. Prime movers 4. Electric engineering 5. Other heavy machinery 6. Machine tools 7. Heavy chemicals, fertilizers and pharmaceuticals and drugs 8. Electro-chemical industries 9. Non-ferrous metals 10.Rubber manufactures 11.Power and industrial alcohol 12.Cotton and woolen textiles 13.Cement 14.Sugar 15.Paper and Newsprint 16.Air and Sea transport 17.Minerals 18.Industries related to defense

(iv). The field of the private enterprise. All other industries which are not included

in those three categories, were left open to

private sector.

3. Roll of small and cottage industries

4. Other important features of industrial

policy.

Industrial policy resolution 1956

Socialistic pattern of society.Objectives of policy 1. To accelerate the rate of economic growth. 2. To expand the public sector, develop heavy and machine making industry. 3. To expand the cottage, village and small scale industries. 4. To increase the employment opportunities. 5. To achieve balanced industrial development. 6. To reduce the existing disparities of income and wealth.

Categorization of industries.

Schedule A17industries

Schedule B12 Industries

Private SectorUnit

. PRIVATE SECTORE UNIT

. Schedule A (17 industries) SCHEDULE A Arms and ammunition and allied items of defense equipments. Atomic energy. Iron and Steel. Heavy castings and forgings of iron and steel. Heavy plant and machinery required for iron and steel production, for mining, for machinery

tool manufacture and for such other basic industries as may be specified by the Central Government.

Heavy electrical plant including large hydraulic and steam turbines. Coal and lignite. Mineral oils. Mining of iron ore, manganese ore, chrome-ore, gypsum, sulphur, gold and diamond. Mining and processing of copper, lead, zinc, tin, molybdenum and wolfram. Minerals specified in the Schedule to the Atomic Energy (Control of production and Use)

Order, 1953. Aircraft. Air transport. Railway transport. Shipbuilding. Telephones and telephones cables, telegraph and wireless apparatus (excluding radio

receiving sets). Generation and distribution of electricity.

Schedule B (12 industries)

SCHEDULE B All other minerals except ‘minor minerals’ as defined in Section 3 of

the Minerals Concession Rules 1949. Aluminum and other non-ferrous metals not included in Schedule A. Machine tools. Ferro-alloys and tool steels. Basic and intermediate products required by chemical industries such

as the manufacture of drugs, dye-stuffs and plastics. Antibiotics and other essential drugs. Fertilizers Synthetic rubber. Carbonization of coal. Chemical pulp. Road transport. Sea transport.

Industrial policy -1991

Objectives of the policy To maintain the sustained growth in productivity. To achieve optimum utilization of human

resources. To attain the international competitiveness. To enhance gainful employment. To abolish the monopoly of any sector in any field

of manufacture except on strategic or security ground.

Initiatives in the following area.

Industrial licensingForeign investmentForeign technology agreementPublic sector policy

Policy measures

Liberlisation of industrial licensing policyLiberlisation of locational policyLiberlised policy for small scale sectorLiberlised policy for Foreign technology

agreement.