 Policy  Industrial Policy  Need and Objectives of Industrial Strategy  Industrial Policies since Independence  Industrial Policy of 1948

1. Industrial Policy Since
Independence and its Significance
- Presentation by
M. Vamsi Krishna
T. Gopala Krishna
P. Sampath Kumar
D. Siva Madan Kumar

2. Index
 Policy
 Industrial Policy
 Need and Objectives of Industrial Strategy
 Industrial Policies since Independence
 Industrial Policy of 1948

3. Policy
• Definition: A deliberate system of policies are principles, rules and guidelines
formulated or adopted by a governance body within an organisation or individual to
reach its long term goals and typically published in a booklet or other form that is
widely accessible.
• Importance of Policies :
 Policies clearly outline what actions are unacceptable.
 Adhering to policies and procedures protects employees and organisations.
 Not following Policies exposes organisations to lawsuits.
• Note : Policies differs from rules or law (law compels behaviours). It merely guides
actions towards those that are most likely to achieve a desired outcome.

4. Industrial Policy
• Industrial Policy: It is a 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.
 It is a policy document prepared by the government which states how the industrial
environment of the country will take shape in the future.
 It was an effort to expand the industrialisation and uplift the economy to its deserved
heights.
 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.
 The role of industrial policy is more important in a planned economy like India.
 Industrial policy is also called as Industrial Strategy, sometimes denoted as IP.

6. Industrial policy refers to organized government involvement in guiding the economy
by encouraging investment in targeted industries. Such policy serves to allocate capital
across manufacturing industries by a system of taxes, subsidies, and investment
incentives designed to move the economy along a specific pathway.

7. Need and Objectives of Industrial
Strategy
• Need : Industrial Policy is required to establish healthy traditions of industrialisation
and to guide, regulate and control of industrial development.
• It is influenced by the ideology and principles of the concerned government of a
country.
Objectives :-
 Deployment of Natural Resources.
 To augment Industrial Production.
 Modernisation.
 Balanced Industrial Development.
 Balanced Regional Development.
 Cordial Industrial Relations.
 Area Determination.
 Coordination between small scale and large scale industries.
 Proper utilisation of Foreign Assistance / Investment.

8. Industrial Policies Since
Independence

9. Industrial Policy of 1948
 The first industrial policy after independence was announced on 6th April 1948.
 It was presented by Dr. Shyama Prasad Mukherjee then Industry Minister.
 This policy laid stress on the role of state in the development of industry.
 The main goal of this policy was to accelerate the industrial development by
introducing a mixed economy where the private and public sector was accepted as
important in the development of the economy.
 It saw the Indian economy in socialistic patterns.

10. The large industries were classified into four categories:-
1. Industries with exclusive State Monopoly/Strategic industries: It included industries
engaged in the activity of atomic energy, railways and arms, and ammunition.
2. Industries with Government control: This category included industries of national
importance. 18 such categories were mentioned in this category such as fertilizers,
heavy machinery, defence equipment, heavy chemicals, etc.
3. Industries with Mixed sector: This category included industries that were allowed to
operate independently in the private or public sector. The government was allowed
to review the situation to acquire any existing private undertaking.
4. Industry in the Private sector: Industries which were not mentioned in the above
categories fall into this category. High importance was granted to small businesses and
small industries, leading to the utilization of local resources and creating
employment.

11.  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.
 It also emphasised on securing a continuous increase in production and its equitable
distribution.
 The foreign capital which was seen with suspect in the pre-independent era was
recognized as an important tool to speedup up industrial development.

13. Thank You