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    Industrial Policy

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    nehparam14
    The document summarizes key industrial policies of India from 1948 to 1991. The 1948 policy accepted a dual public-private sector approach. The 1956 policy aimed to accelerate growth and industrialization through expanding the public sector. The 1991 policy drastically altered India's industrial landscape by deregulating and liberalizing the economy to make industries more competitive and attract foreign investment and technology.

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    Industrial Policy

    Uploaded by

    nehparam14
    79 views11 pages
    The document summarizes key industrial policies of India from 1948 to 1991. The 1948 policy accepted a dual public-private sector approach. The 1956 policy aimed to accelerate growth and industrialization through expanding the public sector. The 1991 policy drastically altered India's industrial landscape by deregulating and liberalizing the economy to make industries more competitive and attract foreign investment and technology.

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    The document summarizes key industrial policies of India from 1948 to 1991. The 1948 policy accepted a dual public-private sector approach. The 1956 policy aimed to accelerate growth and industrialization through expanding the public sector. The 1991 policy drastically altered India's industrial landscape by deregulating and liberalizing the economy to make industries more competitive and attract foreign investment and technology.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    79 views11 pages

    Industrial Policy

    Uploaded by

    nehparam14
    The document summarizes key industrial policies of India from 1948 to 1991. The 1948 policy accepted a dual public-private sector approach. The 1956 policy aimed to accelerate growth and industrialization through expanding the public sector. The 1991 policy drastically altered India's industrial landscape by deregulating and liberalizing the economy to make industries more competitive and attract foreign investment and technology.

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    INDUSTRIAL POLICY

    It lays a wide canvas and sets the tone for


    implementation of govt regulatory and promotional
    roles.
    Rationale
     Correct the imbalances in the development.
     Direct the flow of resources in the most desirable areas o f
    investment
     Prevent the wasteful use of scarce resources and ensure
    their conservation.
     Empower the Govt to regulate the establishment and
    expansion of Pvt sectors
     Demarcate the areas among public, pvt,and Joint sectors.
     Prevent the formation of monopolies(Fiscal,monetary
    measures)
     Guidance for importing Foreign capital.
    IPR-1948
     1. Acceptance of the dual Sector.
     Division of Industries
     State Monopoly (Arms, Atomic energy etc)
     Mixed Sector (Coal ,Aircraft, Iron Steel etc)
     Govt Control.(Regulatory Role-A utomobiles,
    fertilizers,sugar,paper mill etc)
     Pvt Enterprise

     Role of small and cottage Industries


    Industrial Policy-1956
     Constitution was adopted
     Planning Commission
     Socialism
     Govt was rich enough to invest in public sector
    Objectives
     Accelerate the rate of economic growth & speed up
    industrialization
     Expand Public Sector and develop heavy and machine
    making industry
     Increase employment opportunities
     Prevent creation of monopolies
     Reduce disparity o f income and wealth
     Promote private sector
     Expand cottage Industry
     Balanced regional development
     Schedule A had 17 Industries
     Schedule B had 12 Industries
     Rest were thrown open to Private Participation

    1956 Policy was hailed as the Economic


    Constitution of India
    Industrial Policy -1991

     Announced on 24th July drastically


    altered the Industrial scenario of our
    country.
     Objectives
     Build on the many sided gains already made.
     Encouragement to Indian entrepreneurship and employment
    generation.
     Development of Indigenous Technology through greater
    investment in R&D and bringing in new Technology
     Removing regulatory system
     Increasing competitiveness of Indian Industries PSU’s on
    Business lines and cut their loss
     Protect the interest of workers
     Abolish Monopoly (except on Strategic or Security ground
     Link Indian Economy to the Global Market
     Industrial Licensing Policy
     Foreign Investment
     Foreign Technology agreement
     Public Sector Policy
     MRTPC Act
    Merits of 1991 Policy
     Changes long overdue are old initiative aimed at
    making Indian Industry more competitive internally
    and Internationally , by freeing the economy from the
    shackles of unnecessary control .
     Delicencing host of industries and abolition of all
    registration schemes will free entrepreneurs from red
    tapism.
     Liberalization of the rules relating to direct foreign
    investment (permitting 51 % equity participation)will
    facilitate technology transfer.
     Transferring sick units to BIFR will help improve the
    conditions of PSU’s.
    Limitations
     Scrapping of Licensing means absence of mechanism to
    determine priorities and to develop backward areas.
     Policy is silent on tackling growing industrial sickness .
    Govt has not announced clear exit policy for sick units
    (relenting to trade union pressure).
     Off loading 20% equity in profit making units is a
    revenue raising exercise than genuine privatization
     Infrastructural deficiencies will deter foreign
    investment.
     Policy was drafted at the behest of IMF, which means
    virtual surrender of economic sovereignty .

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