The document outlines the objectives and features of India's industrial policy announced in 1991. The key objectives were to promote sustained economic growth, employment, efficient use of resources, and international competitiveness. The policy aimed to reduce dependence on imports by developing basic and heavy industries and promoting exports. It also sought to reduce regional disparities. The main features included liberalizing industrial licensing, foreign investment rules, and the public sector. The goals were increased production, efficiency, competition, and welfare of workers.
Industrial Policy, 2049 was formulated with the objective of promoting industrial sector.
Long-term Goal of the policy
Silent Features
Major Problems and Challenges
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
Industrial Policy, 2049 was formulated with the objective of promoting industrial sector.
Long-term Goal of the policy
Silent Features
Major Problems and Challenges
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
Industrial policy is an important 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 Indian government in the development of industrial sector.
Industrial growth of a country is guided and regulated through its industrial policies.
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
Industrial policy is an important 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 Indian government in the development of industrial sector.
Industrial growth of a country is guided and regulated through its industrial policies.
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
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In this report, we present a detailed overview of the state and the measures taken by the state government to promote the manufacturing industry. We hope the report helps address and prioritize the issues concerning the manufacturing industry and defines ways for discussions shaping the investment vision for the future.
Industrial policy means Rules, Regulations , Principles, Policies and Procedures laid down by government for regulating, development, and controlling industrial undertakings in the country.
It prescribes the respective roles of the Public, Private, Joint, and Co-operative sectors for the development of Industries.
It also indicates the role of the large, medium and small scale sector.
It incorporates fiscal and monetary policies, tariff policy, labour policy, and the Government attitude towards foreign capital, and role to be played by multinational corporations in the development of the industrial sector.
Liberalization, Privatization and Globalization in India. The economy of India had undergone significant policy shifts in the beginning of the 1990s. This new model of economic reforms is commonly known as the LPG or Liberalisation, Privatisation and Globalisation model.
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2. Industrial policy of any country reflects the growth and
development of that country as the economic
environment is largely influenced by the industrial
production.
Industrial policy indicates the relationship between
government and business.
It gives guidelines for promoting and regulating
industries.
3. It was announced on 24 july 1991
Objectives of industrial policy
To maintain a sustained growth in
productivity
To enhance gainful employment
To achieve optimal utilisation of human
resource
To attain international competitiveness
To transform India into a major partner and
player in global arena
4. To give encouragement to small scale
industries
To bring about development of basic and
heavy industries with a view to reduce the
dependence of country on foreign countries
To take steps to promote exports of industrial
goods
To remove regional disparities by establishing
public sector industries in economically
backward regions of the country
7. Increase in efficiency
Increase in production
Liberalisation
Increase in efficiency of public sector
Increase in competition
Proper significance to small scale sector
Enhance the welfare of the workers
8. Reduction in the role of public sector
Privatization will not automatically lead to
efficiency
Concentration of economic power
Increase in regional imbalance
Adverse effect on small scale sector
Ignores social objectives
9. • Increase in rate of economic growth
• Increase in competitiveness of industrial sector
•Reduction in poverty and inequality
•Increase in efficiency of public sector
•Fall in fiscal deficit
•Decline in deficit of balance of payment
•Increase in efficiency
•Development of small scale industries
10. Less importance to Agriculture
Induced by IMF and World Bank
More dependence on Foreign debt
Dependence on foreign technology
More importance to privatization
Problem of unemployment