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Industrial growth
during planning period


     A presentation by-
     Raveena kaushal
Introduction:
   Industries plays an important role in
    growth and development of a nation.
   Development refers to-
       Increase in number of industries.
       Increase in industrial production.
          Improvement in technology.
Contd.

It is through industrialization that resourses
    of country can be utilized properly.
It leads in higher growth rate even than
    agriculture.
JAWAHARLAL NEHRU also called the
    industries “the modern temples of India”
Industrial development during
the period of planning
During the period of plans:
 Many significant changes takes place in
  industrial sector.
 Industrial development has strengthened.
 India Is now ranked as tenth most
  industrial country of the world.
Industries under 1st five year
plan (1951-56):
   No special efforts were maid.
   Attempts were laid down for future industrial
    growth.
   Many new industries were set up viz.
                Sindri fertilizer factory
          Hindustan machine tools limited
           Indian telephone industry etc.
                          
Industries under 1st five year
plan (1951-56):
   No special efforts were maid.
   Attempts were laid down for future industrial
    growth.
   Many new industries were set up viz.
                Sindri fertilizer factory
          Hindustan machine tools limited
           Indian telephone industry etc.
                          
contd.
   Importance of small scale industries were fully
    recognized.
   Production of saris ,dhotis, sport goods etc.
    were reserved for small scale industries in order
    to reduce competition.
   Increase excise duty on large scale factories.
   Growth rate of industrial sector was: 7.5% per
    annum.
IRON AND STEEL
INDUSTRY BHLIAI
Second five year plan(1956-
1961:
   Significant for industrial growth.
   Plan was based on ‘MAHALANOBIS MODEL’
    and aimed at developing basic industries.
   Acc. to industrial plan 1956,most of the capital
    goods industries were developed and set up
    during this period.
   New steels plants at bhilai, durgapur, rourkrla
    were set up.
   Fertilizer factory at nangal, DDT factory at
    Kerala were set up.
Contd.
   938 rupees for large scale industries and
    rupees 187 were spent on the
    development of small scale industries.
   Foundation was further strengthened by
    laying strength on small scale and village
    industries.
Third five year plan(1961-
1966):
   Objective-to expand heavy industries.
   Production capacity of many industries like iron
    and steel ,paper ,machine were expanded.
   Two new machine factories were set up; one at
    pinjore and hyderabad.
   Steel plant at bokaro, electric factory at haridwar
    ,tiruchirapalli were also set up.
ONE OF THE OLD
INDUSTRIES OF INDIA
Under one year plans(1966-
1969):

   Fourth plan could not be started due to Indo-
    china war.
   Our economy was in acute shortage of funds.
   3 annual plans were formulated.
   Industries was not given much importance.
   Emphasis was on green revolution.
Fifth five year plan (1974-78)
   Objective:
          Attainment of self sufficiency, social justice.
   Accelerate the development of core industries.
   Development of export industries.
   Increase in supply of mass consumption goods.
   Control over production of unnecessary goods.
   Encouragement to village and small industries.
   Application of modern tech.
   Development of industrially backward regions.
   Growth rate:5.9% per annum.
Sixth five year plan (1980-85)
   objectives:
   Optimum utilizations of existing capacity and
    increase productivity.
   To pay special attention to smaller industries.
   To realize the need of superior technique.
   To meet the energy needs of industries.
   Development of backward region.
   Growth rate: 6.4% per annum.
Seventh five year plan(1985-
90)
   Objective:
   To increase the production of industrial goods.
   Maximum use of existing capacity.
   Those industries were developed more which meet the
    more consumer demand in domestic market or exports.
   Laborers were imparted training.
   Attempts to develop electronics and computer industries.
   Growth rate:8.5% per annum.
COTTAGE INDUSTRY
Industries under annual
plans(1990-1992):
    In 1991,new industrial policies were
     announced-
    Its main features were:
1.   Liberalisation
2.   Privitisation
3.   Globlisation
    They are popularly known as LPG.
    Growth rate:4.4%per annum.
Eighth five year plan(1992-
1997)
   In this plan, investment on industries were more than
    agriculture.
   Private sector was given more importance than public
    sector.
   Foreign companies were given important role.
   Emphasis was on promoting exports of industrial goods.
   Emphasis on modernisation and renovation.
   Licensing was liberalized.
   Growth rate: 6.8% per annum.
Ninth five year plan(1997-
2002)
   Private sector was given more importance than
    public sector.
   Development of backward areas.
   Laid special emphasis on foreign investment.
   More emphasis on modern tech., import of
    capital goods.
   Foreign equity was increased upto 100%.
   Growth rate: 5%
Tenth five year plan(2002-
2007)
   Industries faced much stronger international competition.
   Relative role of public sector declined.
   The process of DISINVESTMENT has converted many
    public enterprises to the private one.
   Development of infrastructure to promote industries.
   R&D ,tech. upgradadtion were emphasized.
   SEZs were set up.
   Import duty on gold, diamond were removed.
   Growth rate-7% per annum.
Eleventh five year plan(2007-
2012)
    Proposals:
1.   Strengthening infrastructure.
2.   Micro ,small and labour intensive industries
     were given due importance.
3.   Labour laws will be made more flexible.
4.   SEZs will be promoted.
5.   State govts. will create friendly environment.
6.   Banking institutions will provide liberal loans.
    Growth rate: average 8% per annum.
Appraisal of development in
planning period
   Appraisal will cover achievements and
    weaknesses….let us check them out.
Achievements of industrial
development
1.   Growth rate of industrial sector-from 6 to 8%.
2.   Strong industrial base
3.   Modernisation
4.   Development of public sector
5.   Building of infrastructure.
6.   Increasing share of industries in national
     income and exports.
7.   Increase in foreign collaborations.
Contd.

8. Balanced economy
9.National defense
10.Self dependence
11. Increase in govt. revenue
12.Increase in standard of living and wage
  of labourers.
Weaknesses of industrial
development
1.   Irregular increase in industrial production.
2.   Under-utilization of installed production
     capacity.
3.   Increase in Monopoly powers.
4.   Capital investment in low priority industries.
5.   Poor performance of public sector.
6.   Increase in regional imbalances.
Contd.

7.Less development of small scale
  industries.
8.Industrial sickness.
9.Poor quality production
10. Poor research and developments.
11. Industrial disputes.
Govt. measures for industrial
development
1.   Establishment of basic and heavy
     industries.
2.   Establishment of new industries.
3.   Establishment of financial institutions.
4.   Facilities of foreign capital.
5.   Facilities of foreign technology.
6.   Facility of infrastructure.
Contd.

7. Facility of inventions and technological
  development.
8.To rehabilitate sick industrial units.
9.Industrialisation of backward areas.
10. Special facilities to export oriented
  industries.
Have a good day!

   Thank you

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Industrial growth in in

  • 1. Industrial growth during planning period A presentation by- Raveena kaushal
  • 2.
  • 3. Introduction:  Industries plays an important role in growth and development of a nation.  Development refers to-  Increase in number of industries.  Increase in industrial production.  Improvement in technology.
  • 4. Contd. It is through industrialization that resourses of country can be utilized properly. It leads in higher growth rate even than agriculture. JAWAHARLAL NEHRU also called the industries “the modern temples of India”
  • 5. Industrial development during the period of planning During the period of plans:  Many significant changes takes place in industrial sector.  Industrial development has strengthened.  India Is now ranked as tenth most industrial country of the world.
  • 6. Industries under 1st five year plan (1951-56):  No special efforts were maid.  Attempts were laid down for future industrial growth.  Many new industries were set up viz.  Sindri fertilizer factory  Hindustan machine tools limited  Indian telephone industry etc. 
  • 7. Industries under 1st five year plan (1951-56):  No special efforts were maid.  Attempts were laid down for future industrial growth.  Many new industries were set up viz.  Sindri fertilizer factory  Hindustan machine tools limited  Indian telephone industry etc. 
  • 8. contd.  Importance of small scale industries were fully recognized.  Production of saris ,dhotis, sport goods etc. were reserved for small scale industries in order to reduce competition.  Increase excise duty on large scale factories.  Growth rate of industrial sector was: 7.5% per annum.
  • 10. Second five year plan(1956- 1961:  Significant for industrial growth.  Plan was based on ‘MAHALANOBIS MODEL’ and aimed at developing basic industries.  Acc. to industrial plan 1956,most of the capital goods industries were developed and set up during this period.  New steels plants at bhilai, durgapur, rourkrla were set up.  Fertilizer factory at nangal, DDT factory at Kerala were set up.
  • 11. Contd.  938 rupees for large scale industries and rupees 187 were spent on the development of small scale industries.  Foundation was further strengthened by laying strength on small scale and village industries.
  • 12. Third five year plan(1961- 1966):  Objective-to expand heavy industries.  Production capacity of many industries like iron and steel ,paper ,machine were expanded.  Two new machine factories were set up; one at pinjore and hyderabad.  Steel plant at bokaro, electric factory at haridwar ,tiruchirapalli were also set up.
  • 13. ONE OF THE OLD INDUSTRIES OF INDIA
  • 14. Under one year plans(1966- 1969):  Fourth plan could not be started due to Indo- china war.  Our economy was in acute shortage of funds.  3 annual plans were formulated.  Industries was not given much importance.  Emphasis was on green revolution.
  • 15. Fifth five year plan (1974-78)  Objective:  Attainment of self sufficiency, social justice.  Accelerate the development of core industries.  Development of export industries.  Increase in supply of mass consumption goods.  Control over production of unnecessary goods.  Encouragement to village and small industries.  Application of modern tech.  Development of industrially backward regions.  Growth rate:5.9% per annum.
  • 16. Sixth five year plan (1980-85)  objectives:  Optimum utilizations of existing capacity and increase productivity.  To pay special attention to smaller industries.  To realize the need of superior technique.  To meet the energy needs of industries.  Development of backward region.  Growth rate: 6.4% per annum.
  • 17. Seventh five year plan(1985- 90)  Objective:  To increase the production of industrial goods.  Maximum use of existing capacity.  Those industries were developed more which meet the more consumer demand in domestic market or exports.  Laborers were imparted training.  Attempts to develop electronics and computer industries.  Growth rate:8.5% per annum.
  • 19. Industries under annual plans(1990-1992):  In 1991,new industrial policies were announced-  Its main features were: 1. Liberalisation 2. Privitisation 3. Globlisation  They are popularly known as LPG.  Growth rate:4.4%per annum.
  • 20. Eighth five year plan(1992- 1997)  In this plan, investment on industries were more than agriculture.  Private sector was given more importance than public sector.  Foreign companies were given important role.  Emphasis was on promoting exports of industrial goods.  Emphasis on modernisation and renovation.  Licensing was liberalized.  Growth rate: 6.8% per annum.
  • 21. Ninth five year plan(1997- 2002)  Private sector was given more importance than public sector.  Development of backward areas.  Laid special emphasis on foreign investment.  More emphasis on modern tech., import of capital goods.  Foreign equity was increased upto 100%.  Growth rate: 5%
  • 22. Tenth five year plan(2002- 2007)  Industries faced much stronger international competition.  Relative role of public sector declined.  The process of DISINVESTMENT has converted many public enterprises to the private one.  Development of infrastructure to promote industries.  R&D ,tech. upgradadtion were emphasized.  SEZs were set up.  Import duty on gold, diamond were removed.  Growth rate-7% per annum.
  • 23. Eleventh five year plan(2007- 2012)  Proposals: 1. Strengthening infrastructure. 2. Micro ,small and labour intensive industries were given due importance. 3. Labour laws will be made more flexible. 4. SEZs will be promoted. 5. State govts. will create friendly environment. 6. Banking institutions will provide liberal loans.  Growth rate: average 8% per annum.
  • 24. Appraisal of development in planning period  Appraisal will cover achievements and weaknesses….let us check them out.
  • 25. Achievements of industrial development 1. Growth rate of industrial sector-from 6 to 8%. 2. Strong industrial base 3. Modernisation 4. Development of public sector 5. Building of infrastructure. 6. Increasing share of industries in national income and exports. 7. Increase in foreign collaborations.
  • 26. Contd. 8. Balanced economy 9.National defense 10.Self dependence 11. Increase in govt. revenue 12.Increase in standard of living and wage of labourers.
  • 27. Weaknesses of industrial development 1. Irregular increase in industrial production. 2. Under-utilization of installed production capacity. 3. Increase in Monopoly powers. 4. Capital investment in low priority industries. 5. Poor performance of public sector. 6. Increase in regional imbalances.
  • 28. Contd. 7.Less development of small scale industries. 8.Industrial sickness. 9.Poor quality production 10. Poor research and developments. 11. Industrial disputes.
  • 29. Govt. measures for industrial development 1. Establishment of basic and heavy industries. 2. Establishment of new industries. 3. Establishment of financial institutions. 4. Facilities of foreign capital. 5. Facilities of foreign technology. 6. Facility of infrastructure.
  • 30. Contd. 7. Facility of inventions and technological development. 8.To rehabilitate sick industrial units. 9.Industrialisation of backward areas. 10. Special facilities to export oriented industries.
  • 31. Have a good day! Thank you