Industrial Policy of Government of India
India had an extremely underdeveloped and unbalanced industrial structure. Industries contributed less than one sixth part of national income.Thus after independence, the government of India had to undertake effective measures to increase the tempo of industrialisation. Correct regional imbalances in industrial development and rectify the distorted industrial structure through rapid development of capital goods industries.
Meaning
Industrial policy is a statement which defines the role of government in industrial development It lays down rules and procedures that would govern the growth and pattern of industrial activity. The industrial policy is neither fixed nor inflexible. It is amended, modified and redrafted according to the changed situations
The industrial policy seeks to provide a framework of rules, regulations and reservation of spheres of activity for the public and the private sectors. This is aimed at reducing the monopolistic tendencies and preventing concentration of economic power in the hands of a few big industrial houses.
The industrial policy was announced by government of India in 1948 and Industries act 1951 was passed to give a material shape to this policy. This policy was changed in 1956 to give a concrete policy. It was further altered to give shape to the mixed economy and ideology of socialist pattern of society. The political party, Janta Dal had modified the policy in 1977 (Pathak, 2007). Due to change in government, policy was again revised in 1980. The national front government brought some changes in its industrial policy in 1990. In the decade of 1990s, the government of India decided to deviate from its previous economic policies and learn towards privatization in order to come out from the economic crisis. In July 1991 when the devaluation of Indian currency took place and the government started announcing its new economic polices one after another (Gupta, 1995).Government launched its new economic policy which has three important features such as Liberalization, Privatization and Globalization.
Main Objectives
1.The new economic policy intended to reduce the rate of inflation and to remove imbalances in payment.
2.It intended to move towards higher economic growth rate and to build sufficient foreign exchange reserves.
3.Increase in Employment.
4.Arrival of New Technology or Development of Technology.
5.Development of Infrastructure.
India had an extremely underdeveloped and unbalanced industrial structure. Industries contributed less than one sixth part of national income.Thus after independence, the government of India had to undertake effective measures to increase the tempo of industrialisation. Correct regional imbalances in industrial development and rectify the distorted industrial structure through rapid development of capital goods industries.
Meaning
Industrial policy is a statement which defines the role of government in industrial development It lays down rules and procedures that would govern the growth and pattern of industrial activity. The industrial policy is neither fixed nor inflexible. It is amended, modified and redrafted according to the changed situations
The industrial policy seeks to provide a framework of rules, regulations and reservation of spheres of activity for the public and the private sectors. This is aimed at reducing the monopolistic tendencies and preventing concentration of economic power in the hands of a few big industrial houses.
The industrial policy was announced by government of India in 1948 and Industries act 1951 was passed to give a material shape to this policy. This policy was changed in 1956 to give a concrete policy. It was further altered to give shape to the mixed economy and ideology of socialist pattern of society. The political party, Janta Dal had modified the policy in 1977 (Pathak, 2007). Due to change in government, policy was again revised in 1980. The national front government brought some changes in its industrial policy in 1990. In the decade of 1990s, the government of India decided to deviate from its previous economic policies and learn towards privatization in order to come out from the economic crisis. In July 1991 when the devaluation of Indian currency took place and the government started announcing its new economic polices one after another (Gupta, 1995).Government launched its new economic policy which has three important features such as Liberalization, Privatization and Globalization.
Main Objectives
1.The new economic policy intended to reduce the rate of inflation and to remove imbalances in payment.
2.It intended to move towards higher economic growth rate and to build sufficient foreign exchange reserves.
3.Increase in Employment.
4.Arrival of New Technology or Development of Technology.
5.Development of Infrastructure.
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