Features of Indian Industrial Policy

Features of India’ India’ss industri industrial al policy

Rajiv Roll No. 28 M.B.A. 1st Sem.

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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

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Industrial Policy Resolution,30 April 1956

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Industrial Policy 23rd 1977

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Industrial Policy July 1980

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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. Coal 2. 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

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(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 A 17 industries

Schedule B Private 12 Industries Sector  Unit

. PRIVATE SECTORE UNIT

. Schedule A (17 industries)      

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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 dy e-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 s ector in any field of manufacture except on strategic or security ground.

Initiatives in the following area. 

Industrial licensing

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Foreign investment

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Foreign technology agreement

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Public sector policy

Policy measures 

Liberlisation of industrial licensing policy

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Liberlisation of locational policy

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Liberlised policy for small scale sector 

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Liberlised policy for Foreign technology agreement.