This document discusses India's industrial policy reforms since 1991. It provides background on the objectives of India's original industrial policies following independence in 1948, which aimed to rapidly develop agriculture and industry, create jobs, and reduce poverty and economic disparities. The key industrial policy resolutions from 1948 to 1991 are outlined. The 1991 reforms deregulated industry, reduced licensing, opened the economy to foreign investment, and aimed to make industry more competitive and integrated with the global market. The impact was increased technology, production diversity, and competition but also job losses and increased economic instability.

1. INDUSTRIAL POLICY OF INDIA
REFORMS SINCE 1991

2. DIGIN GEORGE
DRISYA .C .P
FAZEEN RASHEED . A. K
GREESHMA . V .S

3. 
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INTRODUCTION
OBJECTIVES
HIGHLIGHTS OF POLICY
AREAS
MERITS
LIMITATIONS
IMPACT OF INDUSTRIAL POLICY

4. Industrial policy means rules, regulations , principles ,
policies , and procedures laid down by government for
regulating , developing and controlling industrial
undertakings in the country. It prescribes the respective
roles of the public, private joint and cooperative sectors
for the development of industries. It also indicates the
role of the large , medium , and small sector . It
incorporates fiscal and monetary policies, tariff policy ,
labor policy and the government attitude towards foreign
capital, and role to be played by multinational
corporations in the development of the industrial sector.

5. 
Industry has played A central role in India’s
developmental effort. Industry has enjoyed A
special position as the sector that would lead
India in to modern world .It reduces
economic dependence on other countries and
generate other income needed to eliminate
poverty.

6. Nehru laid the foundation of modern India
. The goals and objectives set out for the
nation by Nehru.
 Rapid agricultural and industrial
development of our country
 Rapid expansion of opportunities for
gainful employment
 Progressive reduction of social and
economic disparity
 Removal of poverty and attainment of
self reliance

7. Industrial
policy
resolutio
n of 1991
Industrial
policy
resolutio
n of 1948
Industrial
policy
resolutio
n of 1980
Industrial
policy
resolutio
n of 1956
Industrial
policy
resolutio
n of 1977
Industrial
policy
resolutio
n of 1973

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Continuous increase in production
Ensuring the equitable distribution of revenue
Improvement of role of small and cottage
industries
Outlined the approach to industrial growth
and development
Emphasized the importance of securing a
continuous increase in production and
ensuring its equitable distribution.

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To accelerate the rate of economic growth.
To expand the public sector, develop heavy and
machine making industry
To increase employment opportunities
To prevent creation of monopolies
To build up A large and growing pvt. Sector
To expand the cottage, village,and small scale
industries
To achieve balanced industrial development

10. 
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Certain structural distortions called for
policy changes in IPR 1956
Provide for a closer interaction between the
agricultural and industrial sectors
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.

11. 
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Highest priority to the generation and
transmission of power.
Identify high priority industries.
Attract foreign companies in our country.

12. 
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.

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Proposal for special legislation to protect cottage
and household industries
Emphasis on decentralization and role of small
scale industries.
Prevention of monopoly and concentration of
economic power
Maximum production of consumer goods.

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Promoting competition in the domestic market
Technology up gradation and modernization.
Encourage foreign investment in high
technological areas.
To maximize production.
To strengthen agricultural base by giving priority
to agro based industries.
Consumer protection against high prices and bad
quality goods.

15. 
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Self reliance to build on the many sided gains
already made
Encouragement to Indian entrepreneurship,
promotion of productivity and employment
generation
Removing the regulatory system and other
weakness
Increasing the competitiveness of industries for
the benefit of the common man
Enhanced support to the small scale sector

16. Conti…
 Incentive for the Industrialization of backward
areas
 Ensure running of public sector undertakings
on business lines and cut their losses
 Development of indigenous technology through
greater investment in R&D and bringing in
new technology to help Indian manufacturing
units attain world standards
 Protect the interest of workers

17. Conti…
 Abolish the monopoly of any sector in any field of
manufacture except on strategic or security
grounds
 To link Indian economy to the global market so
that we acquire the ability to pay for imports and
to make us less dependent on aid.

18. 
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De reservation of industries for the public sector
De licensing
Abolition of phased manufacturing program
Removal of mandatory convertibility clause
Amendment of monopolies restrictive trade practices
Encouragement to foreign investment
Change of policy in small scale industry

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Industrial licensing policies
Foreign investment
Foreign technology agreement
Public sector policy
MRTP act

20. 
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Competitive industry
Freedom to entrepreneurs
Liberalization
Performance of govt. Undertaking
Integration with world economy
Open the economy

21. 
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No priority to backward area
No solutions for sickness of industries
Reduction in the expected foreign investment
Surrender to IMF
Offloading of 20% equity in profit making

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Changes in technology
Product diversity
Market concentration
Geographical dispersion
Destabilization of protected environment
Export-a matter of survival
All round competition
Buyer’s market

24. 
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ESSENTIALS OF BUSINESS ENVIRONMENT- K.
ASWATHAPPA - HIMALAYA PUBLISHING HOUSESEVENTH EDITION -2000
BUSINESS ENVIRONMENT- SURESH BEDI-

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