Industrial Policy by Aijaz Aryan

1. Presented by:
Aijaz Ahmed Rather
I.K.G Punjab Technical University

2.  Industrial policy of any country reflects the growth and
development of that country as the economic
environment is largely influenced by the industrial
production.
 Industrial policy indicates the relationship between
government and business.
 It gives guidelines for promoting and regulating
industries.

3. It was announced on 24 july 1991
Objectives of industrial policy
To maintain a sustained growth in
productivity
To enhance gainful employment
To achieve optimal utilisation of human
resource
To attain international competitiveness
To transform India into a major partner and
player in global arena

4.  To give encouragement to small scale
industries
 To bring about development of basic and
heavy industries with a view to reduce the
dependence of country on foreign countries
 To take steps to promote exports of industrial
goods
 To remove regional disparities by establishing
public sector industries in economically
backward regions of the country

5. (A) Policy features:
 Industrial licensing
 Foreign investment
 Foreign technology agreements
 Public sector policy
 MRTP Act

6. Functional features:
Liberalisation of localization policy
Expansion and diversification of Existing
units
Continuation of phased manufacturing
programme

7. Increase in efficiency
Increase in production
Liberalisation
Increase in efficiency of public sector
Increase in competition
Proper significance to small scale sector
Enhance the welfare of the workers

8. Reduction in the role of public sector
Privatization will not automatically lead to
efficiency
Concentration of economic power
Increase in regional imbalance
Adverse effect on small scale sector
Ignores social objectives

9. • Increase in rate of economic growth
• Increase in competitiveness of industrial sector
•Reduction in poverty and inequality
•Increase in efficiency of public sector
•Fall in fiscal deficit
•Decline in deficit of balance of payment
•Increase in efficiency
•Development of small scale industries

10. Less importance to Agriculture
Induced by IMF and World Bank
More dependence on Foreign debt
Dependence on foreign technology
More importance to privatization
Problem of unemployment