Industrial policy and trends

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Industrial policy and trends

  1. 1. INDUSTRIAL POLICY AND TRENDS
  2. 2. INTRODUCTION <ul><li>Industrial policy of any country reflects the growth and development of that country </li></ul><ul><li>The term Industrial policy refers to all objectives, principles, rules, regulations and procedures concerning the industrial development, location and functioning of industrial establishments, ownership pattern of industrial, rate of growth of industries in the country. </li></ul>
  3. 3. <ul><li>It also describes the govt. policy towards foreign capital, labour, tariff and other related aspects. </li></ul><ul><li>It also indicates the respective areas of large, small and medium scale sectors. </li></ul><ul><li>It gives clear guidelines for promoting and regulating industries. </li></ul><ul><li>Therefore, it shapes, guides, regulates and controls the industrial development of that country. </li></ul>
  4. 4. INDUSTRIAL POLICY, 1948
  5. 5. <ul><li>It emphasized the important to the economy for securing a continuous increase in production and ensuring its equitable distribution. </li></ul>OBJECTIVE
  6. 6. ADVANTAGE <ul><li>MORE EMPHASIZED ON SMALL-SCALE INDUSTRIES </li></ul><ul><li>LABOUR-MANAGEMENT RELATION AND FAIR REMUNERATION TO LABOUR </li></ul><ul><li>ATTITUDE TOWARDS FOREIGN CAPITAL </li></ul><ul><li>DIFFERENT LABOUR LAWS,SUCH AS,MINIMUM WAGESACT,EMPLOYEES STATE INSURANCE ACT,LABOUR WELFAIR ACT </li></ul>
  7. 7. INDUSTRIAL POLICY,1956
  8. 8. OBJECTIVES <ul><li>TO ACCELERATE THE RATE OF ECONOMIC GROWTH </li></ul><ul><li>TO DEVELOP HEAVY INDUSTRIES AND MACHINE MAKING INDUSTRIES </li></ul><ul><li>TO PREVENT PRIVATE MONOPOLIES,BY EXPANDING PUBLIC SECTOR </li></ul><ul><li>TO REDUCE DISPARITES IN INCOME AND WEALTH </li></ul>
  9. 9. ADVANTAGE <ul><li>NON-DISCRIMINATING TREATMENT TO PRIVATE SECTOR </li></ul><ul><li>IMP. PLACE TO SMALL-SCALE INDUSTRIES </li></ul><ul><li>REMOVAL OF REGIONAL INDUSTRIAL DISPARITIES </li></ul><ul><li>APPROPRIATE AMENITIES FOR INDUSTRIAL LABOUR </li></ul>
  10. 10. CRITICISM <ul><li>ALTHOUGH IT HAS ACCEPTED MIXED ECONOMY BUT IT GIVE MORE IMP. TO PUBLIC SECTOR </li></ul><ul><li>IN THIS, PRIVATE SECTOR SET UP IN THOSE INDUSTRIES WHICH ARE TO BE DOMAIN OF PUBLIC SECTOR </li></ul><ul><li>PRIVATE SECTOR HAVE ENOUGH OPPORTUNITIES FOR DEVELOPMENT BUT STATE HAVERIHT TO ACQUIRE ANY INDU. </li></ul>
  11. 11. INDUSTRIAL POLICY ,1977
  12. 12. OBJECTIVE <ul><li>IMP. TO SMALL-SCALE INDUSTRIES </li></ul><ul><li>FOREIGN CAPITAL INVESTMENT </li></ul><ul><li>MEASURES IN CASE OF SICK INDUSTRIES UNITS </li></ul><ul><li>LABOUR-MANAGEMENT RELATIONSHIP </li></ul><ul><li>PROMOTION OF TECH. SELF RELIANCE </li></ul><ul><li>EXPANDING ROLE OF PUBLIC SECTOR </li></ul><ul><li>INDUSTRIES </li></ul>
  13. 13. CRITICISM <ul><li>THE POLICY IS CALLED “OLD WINE IN NEW BOTTLE”. </li></ul><ul><li>THE POLICY OF ENCOURAGE SMALL-SCALE IND.WAS NOT CARRIED FULL EXTENT,ONLY 807 ITEM RESERVED OUT OF 2000 ITEMS. </li></ul>
  14. 14. INDUSTRIAL POLICY,1980
  15. 15. OBJECTIVES <ul><li>TO SECURE OPTIMUM UTILIZATION OF INSTALLED CAPACTITY. </li></ul><ul><li>TO MAKE EFFORTS TO MAXIMIZE IND. PRODUCTION AND TO ACHIEVE HIGHER PRODUCTIVITY. </li></ul><ul><li>TO GENERATE MAX. OPPORTUNITIES FOR EMPLOYMENT. </li></ul><ul><li>TO REDUCE REGIONAL IND. IMBALANCES </li></ul><ul><li>TO BRING FASTER PROMATION OF EXPORTS ORIENTED AND IMPORT SUBSTITUTING IND. </li></ul>
  16. 16. INDUSTRIAL POLICY,1991
  17. 17. OBJECTIVES <ul><li>TO TRANSFORM INDIA INTO MAJOR PARTNER AND PLAYERIN GLBAL ARENA </li></ul><ul><li>TO ATTAIN INTERNATIONAL COMPETITIVANASS </li></ul><ul><li>TO DEVELOP BASIC AND HEAVY IND.,ESSENTIAL AND VITAL GOODS </li></ul><ul><li>TO REDUCES DEPENDENCE OF FORIGN COUNTRIES </li></ul><ul><li>TO TAKE STEPS TO PROMOTE EXPORTS </li></ul>
  18. 18. FEATURES <ul><li>INDUSTRIAL LICENSING </li></ul><ul><li>FOREIGN INVESTMENT </li></ul><ul><li>FOREIGN TECHNOLOGY AGREEMENTS </li></ul><ul><li>PUBLIC SECTOR POLICY </li></ul><ul><li>MRTP ACT </li></ul><ul><li>LIBRALISATION OF LOCALIZATION POLICY </li></ul><ul><li>REMOVAL OF MANDATORY CONVERTIBILITY CLAUSE </li></ul><ul><li>EXPANSION AND DIVERSIFICATION OF EXISTING UNITS </li></ul><ul><li>CONTINUTION OF PHASED MANUFACTURING PROGRAMME </li></ul>
  19. 19. MARITS <ul><li>INCREASE IN EFFICIENCY </li></ul><ul><li>INCREASE IN PRODUCTION </li></ul><ul><li>LIBERALISATION </li></ul><ul><li>INCREASE IN EFFICIENCY OF PUBLIC SECTOR </li></ul><ul><li>INCREASE IN COMPETITION </li></ul><ul><li>PROPER SIGNIFICANCE TO SMALL SCALE SECTOR </li></ul><ul><li>ENHANCE THE WELFARE OF THE WORKERS </li></ul>
  20. 20. SHORTCOMINGS <ul><li>REDUCTION IN THE ROLE OF PUBLIC SECTOR </li></ul><ul><li>PRIVATIZATION WILL NOT AUTOMATICALLY LEAD TO EFFICIENCY </li></ul><ul><li>CONCENTRATION OF ECONOMIC POWER </li></ul><ul><li>INCREASE IN REGIONAL IMBALANCE </li></ul><ul><li>ADVERSE EFFECT ON ECONOMIC SOVEREIGNTY </li></ul><ul><li>ADVERSE EFFECT ON SMALL SCALE SECTOR IGNORES SOCIAL OBJECTIVES </li></ul>
  21. 21. THANK YOU

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