INDUSTRIAL GROWTH SINCE
Introduction to New Industrial Policy 1991.
Important factors affecting slowdown since
Tenth Plan Period ( 2002- 2007).
Eleventh Plan Period (2007- 2012).
Classification on the basis of:-
Use of Goods
Size of Investment
BASIC GOODS 45.68%
< 25 LAKH
USEOF GOODS SECTORS
Changes in USE BASED Industries
Consumer non durables Capital goods
Changes in ownership based industries
In 1950, railways , posts and telegraphs were the main
In 2011-12,there were altogether 248 central public
The cumulative investment in all CPSEs together stood at
666848 crores .
Share in investment
CHANGES IN MANUFACTURING
1.Changes in shares of different sectors in
• Chemical and
•Basic metals and
2. Increase in capital intensity.
Rise in fixed capital per employee –
CAGR by 6.5%
3. No change in the paradox of Indian
“The paradox of Indian manufacturing in 1980s
is that a labour rich, capital poor economy using
too little of the former and using the latter very
1997-98 2003-04 2004-
STRUCTURAL CHANGES IN THE
ORAGANISED MANUFACTURING SECTOR.
RATE OF EMPLOYMENT.
Manufacturing , one of the key driver of the
transformation of the growth path of Indian economy
witnessed during the post 2000.
1980 3.9 7.5 0.7
1990 2.1 7.1 0.9
Public sector 1.53 -0.65
Private sector 0.44 1.75
Rate of growth of employment in the organised
sector (%per annum)
4.Burden of Public sector
2nd Five Year Plan onwards-massive
investment in public sector
Adverse impact on the industrial
Sick units in India
• Internal Factors
• External Factors
End of March
Rising competition and