The document provides an overview of India's industrial policies since independence. The key policies include the Industrial Policy Resolution of 1948 which outlined an active but limited role for the state in industrial development. The Industrial Policy Resolution of 1956 expanded the state's role and sought to accelerate industrialization along socialist lines. Subsequent policies in 1973, 1977, and 1980 made further adjustments. The 1991 New Industrial Policy dramatically liberalized the economy, reducing licensing, opening sectors to private and foreign investment, and redefining the public sector's role. It aimed to make India a global player through reforms, privatization, liberalization and stabilization.
Industrial Policy Resolution of 1948
Industrial Policy Resolution of 1956
Industrial Policy Resolution of 1973
Industrial Policy Resolution of 1977
Industrial Policy Resolution of 1980
The New Industrial Policy of 1991
new industrial policy 1991 is about the changes made in the policy in 1991. this policy is devided into two parts 1 is announced on 24 july 1991 which is concernd with the large scale industres including the middle scale and the second part is announced on 6 august 1991 and concerned with small scale sector............
Industrial Policy Resolution of 1948
Industrial Policy Resolution of 1956
Industrial Policy Resolution of 1973
Industrial Policy Resolution of 1977
Industrial Policy Resolution of 1980
The New Industrial Policy of 1991
new industrial policy 1991 is about the changes made in the policy in 1991. this policy is devided into two parts 1 is announced on 24 july 1991 which is concernd with the large scale industres including the middle scale and the second part is announced on 6 august 1991 and concerned with small scale sector............
Introduction
The industrial policy means the procedures, principles, policies rules and regulations which control the industrial undertaking of the country and pattern of industrialization. It explains the approach of Government in context to the development of industrial sector. In India the key objective of the economic policy is to achieve self-reliance in all sectors of the economy and to develop socialistic pattern of society. The industrial policy in the pre-reform period i.e. before1991 put greater emphasis on the state intervention in the field of industrial development. These policies no doubt have resulted into the creation of diversified industrial structure but caused a number of inefficiencies, distortions and rigidities in the system. Thus during late 70’s and 80’s, Government initiated liberalization measures in the industrial policy framework. The drastic liberalization measures were however, carried out in 1991.
Industrial Policies Prior to 1991
Industrial Policy Resolution, 1948
The first important industrial policy statement was made in the Industrial policy Resolution (IPR), 1948. The main thrust of IPR, 1948 was to lay down the foundation of mixed economy whereby the private and public sector was accepted as important components in the development of industrial economy of India. The policy divided the industries into four broad categories:
(i) Industries with Exclusive State Monopoly: It included industries engaged in the activity of atomic energy, railways and arms and ammunition.
(ii) Industries with Government Control: It included the industries of national importance and so needs to be registered. 18 such industries were put under this category eg. fertilizers, heavy chemical, heavy machinery etc.
(iii) Industries in the Mixed Sector: It included the industries where private and public sector were allowed to operate. Government was allowed to review the situation to acquire any existing private undertaking.
(iv)Industries under Private Sector: Industries not covered by above categories fell in this category.
IPR, 1948 gave public sector vast area to operate. Government took the role of catalytic agent of industrial development. The resolution assigned complementary role to small-scale and cottage industries. The foreign capital which was seen with suspect in the pre-independent era was recognized as an important tool to speedup up industrial development
In economics, the theory of the second best concerns the situation when one or more optimality conditions cannot be satisfied.
The economists Richard Lipsey and Kelvin Lancaster showed in 1956, that if one optimality condition in an economic model cannot be satisfied, it is possible that the next-best solution involves changing other variables away from the values that would otherwise be optimal.
Politically, the theory implies that if it is infeasible to remove a particular market distortion, introducing a second (or more) market distortion may partially counteract the first, and lead to a more efficient outcome.
EXPLAIN HOW ALLEN (1981) ADAPTED THE STANDARD NEOCLASSICAL MODEL OF LABOUR SUPPLY TO PROVIDE A THEORETICAL MODEL OF ABSENTEEISM. EXPLAIN THE KEY PREDICTIONS MADE BY THIS MODEL AND DISCUSS THE EXTENT TO WHICH THE EMPIRICAL LITERATURE SUPPORTS AN ECONOMIC MODEL OF ABSENTEEISM.
Introduction
The industrial policy means the procedures, principles, policies rules and regulations which control the industrial undertaking of the country and pattern of industrialization. It explains the approach of Government in context to the development of industrial sector. In India the key objective of the economic policy is to achieve self-reliance in all sectors of the economy and to develop socialistic pattern of society. The industrial policy in the pre-reform period i.e. before1991 put greater emphasis on the state intervention in the field of industrial development. These policies no doubt have resulted into the creation of diversified industrial structure but caused a number of inefficiencies, distortions and rigidities in the system. Thus during late 70’s and 80’s, Government initiated liberalization measures in the industrial policy framework. The drastic liberalization measures were however, carried out in 1991.
Industrial Policies Prior to 1991
Industrial Policy Resolution, 1948
The first important industrial policy statement was made in the Industrial policy Resolution (IPR), 1948. The main thrust of IPR, 1948 was to lay down the foundation of mixed economy whereby the private and public sector was accepted as important components in the development of industrial economy of India. The policy divided the industries into four broad categories:
(i) Industries with Exclusive State Monopoly: It included industries engaged in the activity of atomic energy, railways and arms and ammunition.
(ii) Industries with Government Control: It included the industries of national importance and so needs to be registered. 18 such industries were put under this category eg. fertilizers, heavy chemical, heavy machinery etc.
(iii) Industries in the Mixed Sector: It included the industries where private and public sector were allowed to operate. Government was allowed to review the situation to acquire any existing private undertaking.
(iv)Industries under Private Sector: Industries not covered by above categories fell in this category.
IPR, 1948 gave public sector vast area to operate. Government took the role of catalytic agent of industrial development. The resolution assigned complementary role to small-scale and cottage industries. The foreign capital which was seen with suspect in the pre-independent era was recognized as an important tool to speedup up industrial development
In economics, the theory of the second best concerns the situation when one or more optimality conditions cannot be satisfied.
The economists Richard Lipsey and Kelvin Lancaster showed in 1956, that if one optimality condition in an economic model cannot be satisfied, it is possible that the next-best solution involves changing other variables away from the values that would otherwise be optimal.
Politically, the theory implies that if it is infeasible to remove a particular market distortion, introducing a second (or more) market distortion may partially counteract the first, and lead to a more efficient outcome.
EXPLAIN HOW ALLEN (1981) ADAPTED THE STANDARD NEOCLASSICAL MODEL OF LABOUR SUPPLY TO PROVIDE A THEORETICAL MODEL OF ABSENTEEISM. EXPLAIN THE KEY PREDICTIONS MADE BY THIS MODEL AND DISCUSS THE EXTENT TO WHICH THE EMPIRICAL LITERATURE SUPPORTS AN ECONOMIC MODEL OF ABSENTEEISM.
Industrial policy is a document that sets the tone in implementing, promoting the regulatory roles of the government. It was an effort to expand the industrialization and uplift the economy to its deserved heights. It signified the involvement of the Indian government in the development of the industrial sector.
An industrial policy (IP) or industrial strategy of a country is its official strategic effort to encourage the development and growth of all or part of the economy, often focused on all or part of the manufacturing sector.
Certainly, here are six key responsibilities of the Competition Commission of India (CCI):
Enforcement of Competition Law: The CCI is entrusted with enforcing the provisions of the Competition Act, 2002, to prevent anti-competitive practices, ensure fair competition, and protect consumer interests in the Indian market.
Investigation of Anti-Competitive Practices: It investigates complaints and cases related to anti-competitive agreements, abuse of dominant positions by firms, and anti-competitive mergers and acquisitions to maintain a competitive market environment.
Review of Mergers and Acquisitions: The CCI reviews mergers, acquisitions, and combinations to evaluate their potential impact on competition in the market and prevent combinations that may significantly lessen competition.
Competition Advocacy: The CCI engages in competition advocacy activities to raise awareness about the benefits of competition, educate stakeholders about competition law, and promote a competitive market culture in India.
Guidance and Advisory Services: It provides guidance, recommendations, and advisory opinions to businesses, government agencies, and other stakeholders on competition-related matters, including compliance with competition law and best practices.
Market Studies and Research: The CCI conducts market studies, research, and analysis to assess competition issues, identify market trends, and propose policy recommendations to promote competition and consumer welfare.
These responsibilities collectively contribute to the CCI's mission of fostering a competitive market environment, promoting economic efficiency, and safeguarding consumer interests in India.
The industrial policy means the procedures, principles,policies rules and regulations which control the industrial undertaking of the country and pattern of industrialization. It explains the approach of Government in context to the development of industrial sector.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2. Introduction
• The Industrial Policy indicates the respective roles of the
public, private, joint and co-operative sectors; small,
medium and large scale industries.
• It underlines the national priorities and the economic
development strategy.
• It also spells the Government’s policy towards
industries- their establishment, functioning, growth and
management; foreign capital and technology, labor
policy, tariff policy etc. in respect of the industrial
sector.
• The Industrial Policy of India has determined the pattern
of economic and industrial development of the
economy. The Industrial Policy reflected the socioeconomic and political ideology of development.
3. Industrial Policy Resolution 1948
• Outlined the approach to industrial growth and
development
• Emphasized the importance of securing a
continuous increase in production and ensuring its
equitable distribution.
4. Industrial Policy Resolution 1948
Progressively active role for the State in the
development of Industries.
• State monopoly: Arms and ammunition, atomic
energy and railway transport
• State exclusively responsible for the establishment of
new undertakings in six basic industries-except where,
in the national interest, the State itself found it
necessary to secure the cooperation of private
enterprise.
5. Industrial Policy Resolution 1948
• Rest of the industrial field open to private
enterprise though the State would also
progressively participate in this field.
6. Industrial Policy Resolution 1956
• After the adoption of the Constitution and the
socio-economic goals, the Industrial Policy was
comprehensively revised and adopted in 1956.
• Sought to accelerate the rate of economic growth
and speed up industrialization to achieve a
socialist pattern of society.
• Capital was scarce & the base of entrepreneurship
not strong enough. Hence, the gave primacy to the
role of the State to assume a predominant and
direct responsibility for industrial development.
7. Industrial Policy Resolution 1956
• Objectives:
– Improvement in living standards and working
conditions for the mass of the people.
– Reduction in income and wealth disparities
– Prevention of private monopolies and
concentration of economic power in different
fields in the hands of small numbers of
individuals.
8. Industrial Policy Resolution 1956
– Progressively predominant and direct
responsibility for the State in setting up new
industrial undertakings and for developing
transport facilities
– Undertake State trading on an increasing scale.
– Equal opportunity for the private sector to
develop and expand.
9. Industrial Policy Resolution 1956
– Private sector to develop on the principle of
cooperation; increasing proportion of the
private sector activities to develop on
cooperative lines.
– The adoption of the socialist pattern of society
as the national objective.
– The need for planned and rapid development.
10. Industrial Policy Resolution 1956
– Public sector: All industries of basic and
strategic importance, or in the nature of public
utility services.
– The State can undertake any type of industrial
production.
11. Industrial Policy Resolution 1956
• Categorization of industries:
i) Set of industries the future development of
which will be the exclusive responsibility of the
State
• ii) Category of industries which will be
progressively state-owned and in which the State
will, therefore, generally take the initiative in
establishing new undertakings, but in which
private enterprise will also be expected to
supplement the efforts of the State.
12. Industrial Policy Resolution 1956
• iii) Rest of industries left to the initiative and
enterprise of the private sector.
• Stress the role of cottage and village and small
scale industries in the development of the national
economy.
• Disparities in levels of development between
different regions should be progressively reduced.
13. Industrial Policy 1973
• Certain structural distortions called for policy
changes in IPR 1956
• Provide for a closer interaction between the
agricultural and industrial sectors
• Highest priority to the generation and
transmission of power.
• 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 items.
14. Industrial Policy 1973
• Within the small scale sector, a tiny sector was
also defined with investment in machinery and
equipment up to Rs.1 lakh & located in towns
with a population < 50,000 according to
1971 census figures, and in villages.
• Proposal for special legislation to protect cottage
and household industries
15. Industrial Policy 1973
• Compulsory export obligations, merely for
ensuring the foreign exchange balance of the
project, would no longer be insisted upon while
approving new industrial capacity.
• In the areas of price control of agricultural and
industrial products, the prices would be regulated
to ensure an adequate return to the investor.
16. Industrial Policy 1977
• Emphasis on
– producing inputs needed by a large number of
smaller units and making adequate marketing
arrangements.
– upgrading the technology of small units.
– Promoting the development of a system of
linkages between nucleus large plants and the
satellite ancillaries
17. Industrial Policy 1977
• Emphasis on:
– the development of small scale industries, the
investment limit in the case of tiny units was enhanced
to Rs.2 lakh, of a small scale units to Rs.20 lakh and of
ancillaries to Rs.25 lakh.
– building buffer stocks of essential raw materials for the
Small Scale Industries for operation through the Small
Industries Development Corporations in the States
and the National Small Industries Corporation in
the Centre.
18. Industrial Policy 1977
• Emphasis on:
– Industrial processes and technologies involving
optimum utilization of energy or the exploitation of
alternative sources of energy for giving special
assistance, including finance on concessional terms.
19. The Industrial Policy Statement 1980
• Formulated wrt the Industrial Policy Resolution of 1956 to
provide for
(i) Optimum utilization of installed capacity;
(ii) Maximum production and achieving higher
productivity;
(iii) Higher employment generation;
(iv) Correction of regional imbalances;
(v) Strengthening of the agricultural base through agro
based industries and promotion of optimum inter-sectoral
relationship;
• (vi) Promotion of export-oriented industries;
20. The Industrial Policy Statement 1980
• (vii) Promotion of economic federalism through equitable
spread of investment and dispersal of returns;
• (viii) Consumer protection against high prices and bad
quality.
21. Industrial Policy upto 1991
The objective of the policy were to :
• Reduce disparities in income and wealth
• Prevent monopolies and concentration of economic
power
• Build a large and heavy public sector and manage the
same effectively
• Develop heavy and machine making industries
• Accelerate the rate of industrialization and economic
growth
• Higher employment generation
• Focus on development of small scale sector
• Optimum utilization of installed capacity
• Rural Industrialization
• Promotion of export oriented units (Industrial Policy
22. Industrial Policy upto 1991 (contd…)
The industrial policy of India prior to liberalization
in 1991 was characterized by the following
features:
• Dominance of Public Sector
• Entry and Growth Restrictions
• Restrictions on Foreign Capital and Technology
Dominance of Public Sector:
• Future development of 17 important industries
such as arms and ammunition, atomic energy,
coal, iron and steel, air transport, railway
transport etc. was exclusively reserved for the
public sector.
23. • Under the Schedule B; 12 industries such as
machine tools, fertilizers, synthetic rubber, road,
transport etc; industries were progressively state
owned and the State would take the initiative to
establish new undertakings.
24. Entry and Growth Restrictions:
• License was mandatory for establishing new units with
investments above a specified limit, for manufacturing of
new products and for undertaking substantial expansion.
• Large firms of Rs. 100 crore or above and dominant
undertakings (those with a market share of 25% or more) had
to obtain clearance under the Monopolies and Restrictive
Trade Practices Act in addition to the industrial license. There
were also restrictions on capital goods etc.
Restrictions on Foreign Capital and Technology:
• In industries where foreign capital was allowed, it was
subjected to a ceiling of 40% of the total equity although
there were certain exception. Operations of foreign
companies in India and issue of securities abroad by Indian
Companies was regulated by the Foreign Exchange Regulation
Act, FERA 1973.
25. The New Industrial Policy 1991
•
•
The Industrial Policy announced on July 24, 1991 heralded the economic
reforms in India and sought to drastically alter the industrial scenario in
our country. The most visible sign of the country’s economic crisis in early
1991 was:
Extremely low foreign exchange reserves of Rs. 2400 crore (just enough to
buy from abroad only three weeks requirements.)
Inflation was as high as 13.5%
This policy expanded the scope of the private sector by
opening up most of the industries for the private sector and
did away with the entry and growth restrictions. The most
important initiatives are with respect to the virtual scrapping
of industrial licensing and registration policies, an end to the
monopoly law and a welcoming approach to foreign
investments, apart from redefining the role of the public
sector.
Words like “dramatic”, revolutionary” and “drastic have been
26. Main features :Objectives of the Industrial
Policy of the Government are –
• to maintain a sustained growth in
productivity;
• to enhance employment;
• to achieve optimal utilization of human
resources;
• to attain international competitiveness
• Development of indigenous technology
through greater investment in R&D and
bring in new technology to help Indian
manufacturing
units
Incentive
for
industrialization of backward areas
27. • Ensure running of PSUs on business lines and
cut their losses
• Protect the interests of workers
• Abolish the monopoly of any sector in any
field of manufacture except on strategic or
security grounds.
• to transform India into a major partner and
player in the global arena.
Policy focus is on –
• Deregulating Indian industry;
• Allowing the industry freedom and flexibility
in responding to market forces and
• Providing a policy regime that facilitates and
28. The New Policy has four features:
Liberalisation; privatisation, globalisation and
stabilisation
Redefinition of the role of the Public Sector:
The number of industries reserved for the public
sector was reduced to eight and it was later
pruned to two ie atomic energy and railway
transport.
29. The priority areas for growth of public enterprises
will be the
essential infrastructure
industry;
goods
and
services
exploration of oil and mineral resources;
technology development and building of
manufacturing capabilities in areas which are
crucial in the long term development of the
economy and where private sector investment
is inadequate.
The policy also seeks selective privatization and
withdrawal of the public sector from industries.
30. Also, in respect of public sector enterprises, the
following measures were adopted:
• Portfolio of public sector investments to be
reviewed periodically with a view to focus the
public sector on strategic, high tech and
essential infrastructure.
• Public enterprises which are chronically sick
and unlikely to be turned around to be
referred to the Board for Industrial and
Financial
Reconstruction
(BIFR)
for
formulation of revival / rehabilitation schemes
31. • In order to encourage wider public
participation, a part of the Government’s
shareholding in the public sector would be
offered to mutual funds, financial institutions
and the general public.
• Board of PSU to be more professional and
have greater powers.
• Thrust to be on performance improvement
and management would be granted more
autonomy in operation.
32. Industrial Licensing:
• Industrial Licensing was governed by the Industries
Development & Regulation Act, 1951.
• Industrial Licensing policy and procedures have
been liberalized and continuously changed.
Industrial licensing has been abolished for all
projects except for a short list of industries All
excepting 18 industries were freed from licensing.
The number was later reduced to five. Distillation
and brewing of alcoholic drinks; cigars and
cigerattes; electronic aerospace; hazardous
chemicals and industrial explosives
33. • The industries subject to compulsory
industrial licensing account for a very small
share of the value added in the manufacturing
sector.
• Industries are free to select the location of the
industry. However, in cities with a population
of over 1 million, the industries are to be
located in the areas designated as “industrial
areas” or 25 kms away from the Standard
Urban area limits of the city. However,
industries of a non polluting nature were
exempt. The locational policy was abolished in
2008.
34. Liberalisation of Foreign Investment: Policy
towards foreign capital and technology has been
modified very significantly. Foreign investment
will bring advantages of technology transfer,
marketing expertise, introduction of modern
managerial techniques and new possibilities for
promotion of exports.
• FDI is allowed in all industries, except industries
falling in a small negative list.
• Approvals for FDI upto 51% in high priority
industries requiring large investments and
advanced technology will be provided.
35. • Since 1992-93, the Indian stock market is
open for investment by Foreign
Institutional Investors (FII’s) and Indian
companies satisfying certain conditions
may access foreign capital market.
• Some of the recent initiatives taken to
further liberalise the FDI regime, include
opening up of sectors such as Insurance
(upto 26%); development of integrated
townships (upto 100%)
36. Removal of MRTP Restrictions:
• Most of the MRTP restrictions pertaining to
concentration of economic power (those
requiring permission for establishment of new
undertaking, substantial expansion, manufacture
of new items and mergers and acquisitions) were
scrapped.
• Existing units will be provided a new broad
branding facility to enable them to produce any
article without additional investment.
• The thrust of the policy is on controlling and
regulating monopolistic, restrictive and unfair
trade practices
.
37. Evaluation of the New Industrial Policy
Positives of the new policy are:
• Delicensing of most industries will help
entrepreneurs to quickly seize business
opportunities.
• Removal of controls under the MRTP Act will
facilitate expansion and growth.
• There will be greater inflow of foreign capital
and technology due to easing of restrictions.
• Burden on the public sector will be reduced
and reforms relating to the public sector like
transferring sick units to BIFR will help
improve their performance.
38. Watch- outs :
• The policy environment is much more
conducive for both domestic and foreign
investment than in the past. However, a
host of countries are now trying to woo
foreign investment with a much more
conducive economic environment than in
India.
• cultural factor do also tend to tilt the
balance in favor of other nations.
39. • Foreign investors still regard the policy and procedural
system in India confusing. Rather many feel that policy
and development environment in China is superior to
India.
This Policy has been criticized on the following grounds:
• The policy is a total departure from Nehru’s model of
socialism.
• It will lead to domination of MNC on the Indian Economy.
• Trade Unions oppose the policy due to fear of
unemployment which may arise due to privatization.
40. • Monopolies and concentration of economic power in a
few hands is likely to increase.
• Distortion in industrial pattern would occur due to slow
pace of investment in few basic and strategic industries.
Absence of a mechanism would slow down the
development of backward areas.
• Government is silent about tackling the growing
industrial sickness. The Government has not announced
a clear exit policy for sick units.
41. Second Generation Reforms
• The 1991 reforms have considerably helped in
improving the economic growth of the country. Yet
much more needs to be done to reap the full
benefits. There is a need for Second Generation
Reforms:
• A. Exploiting the Knowledge based Global Economy:
– Revolutionizing the telecom sector to help integrate
India’s economy into the world economy.
– Build institutes for higher education
– A system of intellectual property rights to reward
innovations adequately.
– Venture capital funds to finance risk projects of the
knowledge based economy.
42. B. Growing Indian Transnational Corporations:
– Indian firms to enjoy flexibility in entry and exit.
Freedom to diversify and close down unsuccessful
units.
– Liberalize and move towards capital account
convertibility.
C. High Growth of Agriculture:
– State to ensure that adequate investments are made in
irrigation, agricultural research and infrastructure
• D. Empowering the Poor:
– Integrate and consolidate anti poverty measures.
– Set up a system for old age security.
43. E. Human Development
– Primary education made compulsory.
– Involve private sector to provide better primary
education.
F. Clean Environment:
– Arrest damage to environment
– Promote clean and healthy environment.
H. Improvements to Governance