DRISYA .C .P
FAZEEN RASHEED . A. K
GREESHMA . V .S
HIGHLIGHTS OF POLICY
IMPACT OF INDUSTRIAL POLICY
Industrial policy means rules, regulations , principles ,
policies , and procedures laid down by government for
regulating , developing and controlling industrial
undertakings in the country. It prescribes the respective
roles of the public, private joint and cooperative sectors
for the development of industries. It also indicates the
role of the large , medium , and small sector . It
incorporates fiscal and monetary policies, tariff policy ,
labor policy and the government attitude towards foreign
capital, and role to be played by multinational
corporations in the development of the industrial sector.
Industry has played A central role in India’s
developmental effort. Industry has enjoyed A
special position as the sector that would lead
India in to modern world .It reduces
economic dependence on other countries and
generate other income needed to eliminate
Nehru laid the foundation of modern India
. The goals and objectives set out for the
nation by Nehru.
Rapid agricultural and industrial
development of our country
Rapid expansion of opportunities for
Progressive reduction of social and
Removal of poverty and attainment of
n of 1991
n of 1948
n of 1980
n of 1956
n of 1977
n of 1973
Continuous increase in production
Ensuring the equitable distribution of revenue
Improvement of role of small and cottage
Outlined the approach to industrial growth
Emphasized the importance of securing a
continuous increase in production and
ensuring its equitable distribution.
To accelerate the rate of economic growth.
To expand the public sector, develop heavy and
machine making industry
To increase employment opportunities
To prevent creation of monopolies
To build up A large and growing pvt. Sector
To expand the cottage, village,and small scale
To achieve balanced industrial development
Certain structural distortions called for
policy changes in IPR 1956
Provide for a closer interaction between the
agricultural and industrial sectors
Identify products to be reserved for the
small scale sector: list of industries
exclusively reserved for the small scale sector
expanded from 180 items to more than 500
Highest priority to the generation and
transmission of power.
Identify high priority industries.
Attract foreign companies in our country.
Within the small scale sector, a tiny sector
was also defined with investment in
equipment up to Rs.1 lakh & located in
with a population < 50,000 according to
1971 census figures, and in villages.
Proposal for special legislation to protect cottage
and household industries
Emphasis on decentralization and role of small
Prevention of monopoly and concentration of
Maximum production of consumer goods.
Promoting competition in the domestic market
Technology up gradation and modernization.
Encourage foreign investment in high
To maximize production.
To strengthen agricultural base by giving priority
to agro based industries.
Consumer protection against high prices and bad
Self reliance to build on the many sided gains
Encouragement to Indian entrepreneurship,
promotion of productivity and employment
Removing the regulatory system and other
Increasing the competitiveness of industries for
the benefit of the common man
Enhanced support to the small scale sector
Incentive for the Industrialization of backward
Ensure running of public sector undertakings
on business lines and cut their losses
Development of indigenous technology through
greater investment in R&D and bringing in
new technology to help Indian manufacturing
units attain world standards
Protect the interest of workers
Abolish the monopoly of any sector in any field of
manufacture except on strategic or security
To link Indian economy to the global market so
that we acquire the ability to pay for imports and
to make us less dependent on aid.
De reservation of industries for the public sector
Abolition of phased manufacturing program
Removal of mandatory convertibility clause
Amendment of monopolies restrictive trade practices
Encouragement to foreign investment
Change of policy in small scale industry