INDUSTRIAL POLICY AND TRENDS

INTRODUCTION

Industrial policy of any country reflects the growth and development of that country

The term Industrial policy refers to all objectives, principles, rules, regulations and procedures concerning the industrial development, location and functioning of industrial establishments, ownership pattern of industrial, rate of growth of industries in the country.

It also describes the govt. policy towards foreign capital, labour, tariff and other related aspects.

It also indicates the respective areas of large, small and medium scale sectors.

It gives clear guidelines for promoting and regulating industries.

Therefore, it shapes, guides, regulates and controls the industrial development of that country.

INDUSTRIAL POLICY, 1948

It emphasized the important to the economy for securing a continuous increase in production and ensuring its equitable distribution.

OBJECTIVE

ADVANTAGE

MORE EMPHASIZED ON SMALL-SCALE INDUSTRIES

LABOUR-MANAGEMENT RELATION AND FAIR REMUNERATION TO LABOUR

ATTITUDE TOWARDS FOREIGN CAPITAL DIFFERENT LABOUR LAWS,SUCH

AS,MINIMUM WAGESACT,EMPLOYEES STATE INSURANCE ACT,LABOUR WELFAIR ACT

INDUSTRIAL POLICY,1956

OBJECTIVES

TO ACCELERATE THE RATE OF ECONOMIC GROWTH

TO DEVELOP HEAVY INDUSTRIES AND MACHINE MAKING INDUSTRIES

TO PREVENT PRIVATE MONOPOLIES,BY EXPANDING PUBLIC SECTOR

TO REDUCE DISPARITES IN INCOME AND WEALTH

ADVANTAGE NON-DISCRIMINATING TREATMENT

TO PRIVATE SECTOR IMP. PLACE TO SMALL-SCALE

INDUSTRIES REMOVAL OF REGIONAL

INDUSTRIAL DISPARITIES APPROPRIATE AMENITIES FOR

INDUSTRIAL LABOUR

CRITICISM ALTHOUGH IT HAS ACCEPTED MIXED

ECONOMY BUT IT GIVE MORE IMP. TO PUBLIC SECTOR

IN THIS, PRIVATE SECTOR SET UP IN THOSE INDUSTRIES WHICH ARE TO BE DOMAIN OF PUBLIC SECTOR

PRIVATE SECTOR HAVE ENOUGH OPPORTUNITIES FOR DEVELOPMENT BUT STATE HAVERIHT TO ACQUIRE ANY INDU.

INDUSTRIAL POLICY ,1977

OBJECTIVE IMP. TO SMALL-SCALE INDUSTRIES FOREIGN CAPITAL INVESTMENT MEASURES IN CASE OF SICK

INDUSTRIES UNITS LABOUR-MANAGEMENT RELATIONSHIP PROMOTION OF TECH. SELF RELIANCE EXPANDING ROLE OF PUBLIC SECTOR INDUSTRIES

CRITICISM

THE POLICY IS CALLED “OLD WINE IN NEW BOTTLE”.

THE POLICY OF ENCOURAGE SMALL-SCALE IND.WAS NOT CARRIED FULL EXTENT,ONLY 807 ITEM RESERVED OUT OF 2000 ITEMS.

INDUSTRIAL POLICY,1980

OBJECTIVES TO SECURE OPTIMUM UTILIZATION OF

INSTALLED CAPACTITY. TO MAKE EFFORTS TO MAXIMIZE IND.

PRODUCTION AND TO ACHIEVE HIGHER PRODUCTIVITY.

TO GENERATE MAX. OPPORTUNITIES FOR EMPLOYMENT.

TO REDUCE REGIONAL IND. IMBALANCES TO BRING FASTER PROMATION OF EXPORTS

ORIENTED AND IMPORT SUBSTITUTING IND.

INDUSTRIAL POLICY,1991

OBJECTIVES TO TRANSFORM INDIA INTO MAJOR

PARTNER AND PLAYERIN GLBAL ARENA TO ATTAIN INTERNATIONAL

COMPETITIVANASS TO DEVELOP BASIC AND HEAVY

IND.,ESSENTIAL AND VITAL GOODS TO REDUCES DEPENDENCE OF FORIGN

COUNTRIES TO TAKE STEPS TO PROMOTE EXPORTS

FEATURES INDUSTRIAL LICENSING FOREIGN INVESTMENT FOREIGN TECHNOLOGY AGREEMENTS PUBLIC SECTOR POLICY MRTP ACT LIBRALISATION OF LOCALIZATION POLICY REMOVAL OF MANDATORY CONVERTIBILITY

CLAUSE EXPANSION AND DIVERSIFICATION OF

EXISTING UNITS CONTINUTION OF PHASED MANUFACTURING

PROGRAMME

MARITS INCREASE IN EFFICIENCY INCREASE IN PRODUCTION LIBERALISATION INCREASE IN EFFICIENCY OF PUBLIC

SECTOR INCREASE IN COMPETITION PROPER SIGNIFICANCE TO SMALL SCALE

SECTOR ENHANCE THE WELFARE OF THE

WORKERS

SHORTCOMINGS REDUCTION IN THE ROLE OF PUBLIC

SECTOR PRIVATIZATION WILL NOT

AUTOMATICALLY LEAD TO EFFICIENCY CONCENTRATION OF ECONOMIC POWER INCREASE IN REGIONAL IMBALANCE ADVERSE EFFECT ON ECONOMIC

SOVEREIGNTY ADVERSE EFFECT ON SMALL SCALE

SECTOR IGNORES SOCIAL OBJECTIVES

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