-BALARAM CHAMPANNAVAR

2JI17MBA08
 THE WORLD BANK(1992) has provides a
working definition of industrial policy as
“Government efforts to alter industrial
structure to promote productivity based
growth”

Industrial policy is probably the most

important document which indicates the
relationship between government and
business.
 Maintain balance in industrial development.
 Prevent the wasteful use of scarce resources.
 Empower the government to regulate the
industry related activities.
 To give guidelines for importing foreign
capital.
 To restrict monopoly activities
 Industrial policy resolution (APRIL 6,1948)
 Industrial policy resolution (April 30,1956)
 Industrial policy resolution (Feb 2,1973)
 Industrial policy resolution (Dec 23, 1977)
 Industrial policy resolution (July ,1980)
 Industrial policy resolution (July 24, 1991)
REFORMING IS NOT THE AIM OF THE
ECONOMY,

BUT REFORMING THE ECONOMY IS

THE AIM.
 Industry.
 Deregulating Indian industry.
 Allowing the industry freedom and
flexibility in responding to meet market.
 Growth of the economy.
 The government has announced a new
industrial policy for 2010-2015,
 The policy provides a 25% VAT
reimbursement for five years for large and
medium enterprises ,50% for small
enterprises and cent percent for micro units.
 Increase in investment subsidy
 Encourages women entrepreneur.
 Maximum employment opportunities
 Promote agro based and food processing
industry
 Private sector participation at potential
sites.
 TRIPR- Trade related intellectual property
right under WTO .
 FDI
 Schemes for establishing and developing
enterprises:
 Pm employment generation programme.
 Credit guarantee trust fund for MSE’s
 Credit linked capital subsidy scheme(for tech
upgradation).
 SFURTI-Schemes For Funding of Regeneration
of Traditional Industries.
 MSE –cluster development programme.
 Liberalized and simplified FDI Policy for ease
of doing business in India.
 The government of India has reviewed the
extant policy on FDI and decided that FDI up
to 100% would be permitted in single brand
product retail trading.