The industrial policy of a country aims to encourage development of the manufacturing sector and other parts of the economy. Major objectives of India's industrial policy include rapid industrial development, balanced growth across industries, preventing concentration of economic power, and balanced regional development. The industrial policy has evolved over time through various resolutions and statements starting in 1948, with recent policies in 1991 focusing on liberalization, enhancing small businesses, and making industries more competitive.

1. INDUSTRIAL POLICY

2. WHAT IS INDUSTRIAL POLICY?
The Industrial Policy of a country, sometimes denoted IP, is its
official strategic effort to encourage the development and
growth of part or all of the manufacturing sector as well as other
sectors of the economy. The government takes measures “aimed
at improving the competitiveness and capabilities of domestic
firms and promoting structural transformation.” A country's
infrastructure (transportation, telecommunications and energy
industry) is a major part of the manufacturing sector that often
has a key role in IP.

3. MAJOR OBJECTIVES OF IP
Rapid Industrial Development
Balanced industrial Structure
Prevention of Concentration of Economic Power
Balanced Regional Growth

4. Rapid Industrial Development
The industrial policy of the Government of India is aimed at
increasing the tempo of industrial development. It seeks to create
a favourable investment climate for the private sector as well as
mobilise resources for the investment in public sector. In its way
the government seeks to promote rapid industrial development
in the country.

5. Balanced industrial Structure
• The industrial policy is designed to correct the prevailing
lopsided industrial structure. Thus, for example, before
independence, India had some fairly developed consumer
goods industries. But the capital goods sector was not
developed at all and basic and heavy industries were by and
large absent.
• So the industrial policy had to be framed in such a manner that
these imbalances in the industrial structure are corrected.

6. Prevention of Concentration of
Economic Power
The industrial policy seeks to provide a framework of rules,
regulations and reservation of spheres of activity for the public
and the private sectors. This is aimed at reducing the
monopolistic tendencies and preventing concentration of
economic power in the hands of a few big industrial houses.

7. Balanced Regional Growth
Industrial policy also aims at correcting regional imbalances in
industrial development. It is quite well-known that some regions
in the country are industrially quite advanced e.g., Maharashtra
and Gujarat while others are industrially backward, like Bihar,
Orissa. It is the task of industrial policy to work out programmes
and policies which lead to industrial development or industrial
growth.

8. RESOLUTION OF INDUSTRIAL POLICY OF
INDIA
INDUSTRIAL POLICY RESOLUTION 1948 (6th April )
INDUSTRIAL POLICY RESOLUTION 1956 (30th April)
INDUSTRIAL POLICY 1973 (2nd Feb)
INDUSTRIAL POLICY 1977 (23rd Dec)
INDUSTRIAL POLICY STATEMENT OF July,1980
INDUSTRIAL POLICY 1991 (24TH July)

9. INDUSTRIAL POLICY RESOLUTION 1948
(6th April )
The Industrial Policy 1948 was presented in the parliament by then
Industry Minister Dr. Shyama Prasad Mukherjee.
OBJECTIVES
Outlined the approach to industrial growth and development.
Emphasized the importance of securing a continuous increase
in production and ensuring its equitable distribution.

10. INDUSTRIAL POLICY RESOLUTION 1956
(30th April)
This resolution adopted by the Indian Parliament in April 1956. It was the first
comprehensive statement on industrial development of India. The 1956 policy
continued to constitute the basic economic policy for a long time.
OBJECTIVES
 Improvement in the living standards and working condition for the mass of the
people,
 Reduction in income and the wealth disparities.
Prevention of private monopolies and concentration of economic power in diff. fields
in the hands of small numbers of individual.

11. CONTINUED…
Progressively predominant and direct responsibilities for the state in setting
up new industrial undertakings and developing transport facilities.
Undertake state training on an increasing scale.
Equal opportunity for the private sector to develop and expand.
The need for planned and rapid development.
Private sector to develop on the principle of cooperation.
The adoption of the socialist pattern of the society as the national objective.
The state can take any type of industrial production.

12. INDUSTRIAL POLICY 1973 (2nd Feb)
In the Industry Policy Statement 1973, the term “Core Industries” was
included. It referred to the 6 Core Industries: Iron and Steel Industry
Cement, Coal, Crude Oil ,Oil Refining and Electricity .They were called
the basic industries or infrastructure industries.
OBJECTIVES
Provide for a closer interaction between agricultural and industial sector.
Highest priority to the generation and transmission power.
Proposal for special legislation to protect cottage and household industries.

13. INDUSTRIAL POLICY 1977 (23rd Dec)
The Industrial Policy Statement 1977 was announced by Janata Government led by
Morarji Desai on 23 December, 1977. This policy was later replaced by incumbent
Congress Government in 1980. This was the first time when a non-congress government
was ruling dispensation at centre.
OBJECTIVES
 Producing inputs needed by a large number of smaller units and making adequate marketing
arrangements,
 Upgrading the technology of smaller units.
 Promoting the development of the system of linkage between nucleus large plants and the satellite
ancillaries.

14. INDUSTRIAL POLICY STATEMENT OF
July,1980
Congress (I) came back to power in 1980 indicated to thrust in Industrial Policy of 1956. On 25 July,
1980 the new Industrial Policy was announced.
OBJECTIVES
 Revitalisation of the Public sector
 Economic Federalism
 Economic Federalism
 Promotion of rural industries
 Removal of regional imbalances
 Industrial sickness
 Regulation of Unauthorised Excess Capacity

15. INDUSTRIAL POLICY 1991 (24TH July)
For a faster growth of industry, it was necessary that even these impediments should be removed. The new government
by Shri Narasimha Rao, which took office in June 1991, announced a package of liberalisation measures under its
Industrial Policy on July 24, 1991.
OBJECTIVES
 Liberalising the industry from the regulatory devices such as licenses and controls.
 Enhancing support to the small scale sector.
 Increasing competitiveness of industries for the benefit of the common man.
 Ensuring running of public enterprises on business lines and thus cutting their losses.
 Providing more incentives for industrialisation of the backward areas, and
 Ensuring rapid industrial development in a competitive environment.

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