The 1948 Industrial Policy Statement established four categories of industries in India: 1) Public sector industries including arms, ammunition, atomic energy and railways. 2) Public-private industries including coal, iron and steel, aircraft, shipbuilding and others that would be taken over by the government after 10 years. 3) Controlled private industries including automobiles, machinery and chemicals that would be regulated by the government. 4) Private industries where the government could keep checks but were otherwise privately owned. The policy aimed to develop small industries for employment while also allowing private participation and control over foreign capital.

1. Industrial
Revolution 1948
Abhilash Nissankararao

2. Introduction
 The industrial policies adopted in the early years after
Independence for instance, the April 6, 1948 Industrial
Policy Statement, and the April 6, 1949 Statement on
Foreign Investments, have to be seen in the background
of the pre-Independence debates on the nature and
pattern of the development that independent India would
pursue.
 An alternative to the Bombay Plan was provided by a plan
formulated by some labor leaders affiliated to the Radical
Democratic Party. The latter is popularly known as the
'People Plan'. '!he salient features of these two plans are
briefly brought out to show the alternative frameworks
which were before the national political leadership.

3.  The following are the main features of
Industrial Policy of 1948:
 (i) Category of Industries:
Large scale industries were divided into
four categories.
 (a) Public sector: It includes industries
owned and managed by Govt. viz. Arms and
ammunitions atomic energy and railways.

4.  (b) Public-cum-Private sector:
It included six basic industries coal, iron
and steel, aircraft manufacture, ship building,
mineral oil, telephones, cable and wireless
industry. The new ventures relating to these
industries will be established by Govt. and
already existing units will continue to be
managed and developed for next 10 years by
Private Sector.

5.  (c) Controlled private sector: In includes 18
important industries viz. motor vehicles, heavy
machine tools, cotton textiles, cement, sugar,
paper, shipping material and tractor. These
industries will continue to remain under
private sector but Central Govt. will have
overall control over them

6.  (d) Private and co-operative sector:
The rest of the industries will be run under
private ownership or on co-operative basis
Govt. can keep check on these.
 (ii) Cottage and Small scale industries:
Rapid development of these industries
was emphasized in order to use local resources
generating employment avenues and
production of consumer goods.

7.  (iii) Employee-employer relation:
It was aimed that employee- employer
relations should be congenial. The worker should
get fair wages and social security.
 (iv) Control over Foreign Capital:
role of foreign capital for industrial
development was recognized. But Govt. took full
control over foreign capital to watch the interests of
nation.
 (v) Development of infrastructure:
Special stress was laid on development of
roads, railways, electricity and irrigation etc..

8. Objectives
 The main features of the objectives of the Industrial
Policy of the Government of India may be classified as
follows:
to maintain a sustained growth in productivity;
 to achieve optimal utilization of human resources;
 to enhance gainful employment;
 to attain international competitiveness, and
 transform India into a major partner and player in the
global arena

9.  The first important resolution was issued by Govt. of India
on April 6, 1948. After that there have been changes several
times. This Policy divided the industries into four categories. The
small and cottage Industries were given privileges. However this
policy also considered the importance of Private participation.

1. State Monopolies:
This category included the manufacture of arms and
ammunitions, the production and control of atomic energy and
the ownership of railways. This category would belong to the
exclusive monopoly of central government.

2. Basic industries:
The basic industry sector comprised 6 sectors of coal, iron &
steel,, ship building, aircrafts manufacturing, Aircraft Mfg., Ship
Building, Telephone, Telegraph & Wireless (Excluding Radio) &
Mineral Oils. The existing can continue and after 10 years, the
government will take over those undertakings by paying a
compensation which is fair and equitable.

10.  2. Basic industries:
The basic industry sector comprised 6 sectors of coal, iron
& steel,, ship building, aircrafts manufacturing, Aircraft
Mfg., Ship Building, Telephone, Telegraph & Wireless
(Excluding Radio) & Mineral Oils. The existing can
continue and after 10 years, the government will take over
those undertakings by paying a compensation which is
fair and equitable.
3. Regulated Industries:
The Government of India would regulate these industries
as they were important to the masses. The industries that
were included were –Automobiles, Heavy Machinery,
Heavy Chemicals, Fertilizers, Sugar, Paper, Cement,
Cotton, Woolen textiles etc.
4. Private Industries:
 This was the last category. All other industries were kept
in this category.