The slides include content on Economic planning in India, its objectives, Industrial Policy 1991, its need and objectives.

1. Topic : Economic Planning and Industrial Policy
Prepared by :
Nishtha Sarawat

2. What is Economic Planning?
 It means the direction, regulation and control of
economic affairs of the country by a central planning
authority.
 It means the well organized, well defined and well
planned utilization of available physical, material
and human resources of a country by its
government, for the achievement of certain economic
and social objectives.

3. Characteristics:
 Central Planning
 Certain Period (Eg. India plans for 5 years)
 System of Economic Organization
 Determination of Targets
 Social and Economic Development
 Government Regulation

4. Objectives:
Social ObjectivesEconomic Objectives Political Objectives

5. 1) Economic Objectives
 Maximum Production & Productivity
 Promoting Balanced Development
 Best Utilization of National Resources
 Full Employment
 Economic Security and Stability
 Attaining Self reliance
 Promoting Standard of Living

6. 2) Social Objectives
 Social Security
 Social Welfare
 Social Equality

7. 3) Political Objectives:
 Promoting Defense
 Internal Peace
 Satisfying Political Ego

8. Why do we need Economic
Planning?
 Undertaking Big Tasks
 Only way of Development
 Removal of Poverty
 Social justice
 Maximum Utilization of Resources.
 Self Dependence

9. What id Industrial Policy?
 Industrial Policy is a formal declaration by the
Government whereby it outlines its general policies for
industries.
 Any industrial policy may have mainly two parts first,
the ideology of the govt. which determines the
nature of industrialisation, and second, the
governing rules and principles which provide a
certain framework behind existing ideology. Thus,
industrial policy is a comprehensive concept which
provides guidance and out-lines of the policy for
establishment and working of industries.

10. Objectives:
 To canalize the area of industrial production for
public, private and SSI.
 Optimizing production by directing the flow of scarce
resources in investment areas in accordance with
national priorities.
 Growth & Development.
 Reducing the imbalance in the development of the
industries.
 Solving the problems of Unemployment.
 Prevention of Monopoly and under trade practices.

11. Characterization of Large scale
Industries:
 State Monopolies (Manufacturer of arms and
ammunition, control of atomic energy, ownership of
railway, were declared as the monopolies of the
Central Government.)
 Basic Industries ( Coal, Iron & Steel , Aircraft
manufacture, Ship building, manufacture of
telephone, telegraph and wireless apparatus, Mineral
oils)
 Private enterprises
 Regulated Industries

12. Industrial Policy 1991
 On 24th July, 1991, the government headed by Mr. P.V.
Narsimha Rao announced a new Industrial Policy
which sought to drastically change the industrial
scenario.
 In this new policy, reforms and liberalization
programme was announced and provided an
advantage of new economic reforms.

13. Objectives of the New Policy
 Self reliance- Employment opportunity.
 Encouragement to Indian entrepreneur, promotion of productivity and
employment generation.
 Removal of regulatory system.
 Development of technology through greater investment in Research &
development.
 Incentives for industrialization of backward areas.
 Development of SSI to support large scale industries.
 Increase in the competitiveness of industries for the benefit of he
society.
 Protecting the interest of the workers.
 Destroy/Restriction of monopoly practices and unfair trade practices.
 Ensuring smooth running of public sector enterprises.
 To link the Indian Economy to the global market so as to acquire the
ability to pay for imports and to make us less dependent on aid.

14. Reforms in the policy:
 Abolition of Industrial Licensing
 Public sector role diluted.
 Expansion of the scale of private sector and
dismantling of entry and growth restrictions.
 Removal of MRTP Act restrictions.
 Liberalization of foreign investment.
 Foreign technology agreement.