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Industrial Policy 1991 & It'S Effect On "Engineering Manufacturing"
Industrial Policy 1991 & It'S Effect On "Engineering Manufacturing"
Infant Industry
Coordination Failure
Informational Externalities
ARGUMENTS AGAINST
INDUSTRIAL POLICY
Influenced by Special Interests
Knowledge Deficit
Credit availability
•Giving security for big players .
CRITIQUE
The prime objective behind the the new industrial policy was to
unshackle the Indian industries from long standing manacles of
licensing system.
Foreign investment, technology and industrialization were main
tenets behind the economic and political change that took place.
However the implementation of the industrial policy has not been so
smooth. As the government failed to translate major development
projects into reality.
The expectation from the new licensing policy was increase in
manufacturing and production sector to create jobs. But it failed
drastically. Instead it expanded the service sector which did not
create enough jobs.
Thus, despite having immense potential to lead India into the path
of development, the Industrial policy change in 1991 has not been a
success in its entirety. Low capital formation, differential sectoral
allocations, poor performance of the agricultural sector, lack of skilled
labour, concentration of wealth, industrial sickness and regional
imbalances made it difficult for India to speed up the process of
Industrialisation.
NEW INDUSTRIAL POLICY, 2018
Industry 4.0 mainly deals with technology and automation of systems