Class presentation

on
Industrial Policy in India

Submitted To: Submitted By:

Asst. Prof. Vishesh Upamanyu Akash Dandotiya
Anvesh
Mishra
Somraj Singh
Viswajit Singh Bhadoriya
 INTRODUCTION

Industrial policy is a document that sets the tone in

implementing, promoting the regulatory roles of the
government. It was an effort to expand
the industrialization and uplift the economy to its
deserved heights. It signified the involvement of the
Indian government in the development of the industrial
sector.
 Objectives of Industrial Policy

• To maintain steady growth in productivity.

• To create more employment opportunities.
• Utilize the available human resources better
• To accelerate the progress of the country through different means
• To match the level of international standards and competitiveness
Industrial Policy in India
Industrial Industrial
policy policy
resolution resolution
of 1991 of 1948

Industrial
policy Industrial
resolution policy
of 1980 resolution
of 1956

Industrial
policy
resolution
of 1977
 Industrial Policy Resolution, 1948
• It declared the Indian economy as Mixed Economy
• Small scale and cottage industries were given the importance
• The government restricted foreign investments
 Industrial Policy Resolution, 1956
• To accelerate the rate of economic growth.
• To expand the public sector, develop heavy and machine making
industry
• To increase employment opportunities
• To prevent creation of monopolies
• To expand the cottage, village, and small scale industries
• To achieve balanced industrial development
 Industrial Policy Statement, 1977
• This policy majorly focused on Decentralization
• It gave priority to small scale Industries
• It created a new unit called “Tiny Unit”
• This policy imposed restrictions on Multinational Companies
(MNC)
 Industrial Policy Statement, 1980

• Promoting competition in the domestic market

• Technology up gradation and modernization.
• To maximize production.
• To strengthen agricultural base by giving priority to agro
based industries.
• Consumer protection against high prices and bad quality
goods.
 New Industrial Policy, 1991

• Encouragement to Indian entrepreneurship, promotion

of productivity and employment generation.
• Removing the regulatory system and other
weakness.
• Increasing the competitiveness of industries for the
benefit of the common man.
• Enhanced support to the small scale sector.
• Incentive for the Industrialization of backward areas.
• To link Indian economy to the global market so that we
acquire the ability to pay for imports and to make us less
dependent on aid.
HIGHLIGHTS OF 1991 POLICY
• De reservation of industries for the public sector
• De licensing
• Privatisation
• Removal of monopolies restrictive trade practices(MRTP
Act)
• Encouragement to foreign investment
LIMITATIONS OF INDUSTRIAL POLICY

 No priority to backward area

 No solutions for sickness of industries

 Reduction in the expected foreign investment

 Pre-1991 policy Current policy
1. Industrial licensing was the rule. 1. Licensing is an exception.

2. MRTP Act restriction on entry 2. No such restrictions.

and growth of large companies.
3. Very liberal policy towards
3. Restrictive policy towards foreign investment.
foreign investment.
4. Foreign investment allowed in
4. Foreign investment allowed only a large number of industries.
in select industries.