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    Chapter 4

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    Chapter 4

    Uploaded by

    yash d
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    13 views11 pages

    Chapter 4

    Uploaded by

    yash d

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 11

    STRATEGY OF INDUSTRIAL

    GROWTH (1947 – 1990)


    INDUSTRY
    An industry is a sector that produces
    goods or related services within an
    economy.
    IMPORTANCE OF INDUSTRY
     Epicentre of Economic Growth
     Source of Employment
     Source of Mechanised Means of
    Farming
     Imparts Dynamism to Growth Process
     Growth of civilisation
     Infrastructural Growth
     Industrialisation – a Sine – qua – non
    of Growth
    FACTORS NECESSITATING DIRECT PARTICIPATION OF THE STATE (PUBLIC SECTOR) IN INDUSTRIAL
    DEVELOPMENT.

     Lack of Capital
     Low Inducement to Invest
     Growth with Social Justice
    INDUSTRIAL POLICY RESOLUTION - 1956
    (IPR – 1956)
     Three – fold Classification of Industries
     Industrial Licensing
     Industrial Concessions
    SMALL SCALE INDUSTRY (SSI)
    Small scale industries (SSI) are those industries in
    which manufacturing, providing services,
    productions are done on a small scale or
    micro scale. Its investment should not exceed
    Rs.5 crores. For example, these are the ideas
    of Small scale industries: Napkins, tissues,
    chocolates, toothpick, water bottles, small toys,
    papers, pens etc.
    TYPICAL CHARACTERISTICS OF SSI

     Labour intensive and therefore


    Employment Friendly.
     Locational Flexibility and is
    therefore Equality – Oriented.
     Small Investment and is
    therefore Equity – Oriented.
    SALIENT FEATRUES OF THE STRATEGY OF INDUSTRIAL
    GROWTH DURING THE PERIOD 1950 - 1990
     Public enterprises were to play a central role in the
    process of industrialisation.
     Private enterprises were to play only a secondary role
    in the process of industrialisation and that too under
    Permit – Licence Raj.
     Process of industrialisation focused on ‘import
    substitution’.
     Domestic industry was to be protected from foreign
    competition
     Large – scale industry was to be developed with a
    view to building an infrastructural base in the country
     Small – scale industry was to be developed with a
    view to achieving the objectives of employment and
    equity
    GOOD IMPACT BAD IMPACT
    >Rise in Industrial >Public Sector
    Output. monopolies started
    >Industrial Sector causing ‘dead social
    was diversified. weight.’
    >Large – Scale >Domestic Industries
    industries were were inefficient to
    successfully launched cope up with
    >SSI recorded international
    substantial spread competition.
    across different >Foreign exchange
    regions of the (forex) reserves
    country. starting shrinking

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