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Features of India’s industrial policy

Roll No. 28
M.B.A. 1st Sem.
 Meaning of ‘‘industrial policy’’
1.As an important document.
2.Government’s policy towards industries.

 Why industrial policy

1.To prevent the imbalances In the
development of industries.
2.To demarcate areas among the public,
and private sector.
3.To direct the flow of scarce resources.
4.To prevent the wasteful use of scarce resources.
FROM 1948 TO 1991
 Industrial Policy, 6 April 1948
 Industrial Policy Resolution,30 April
 Industrial Policy 23rd 1977
 Industrial Policy July 1980
 Industrial Policy 1991
Industrial policy -1948
1.Importance of public and private
2.Division of industrial sector
(i). Industry where central had monopoly
a. Arms and ammunition
b. Atomic energy
c. Rail transport
(ii). Mixed sector

1. Coal
2. Iron and Steel.
3. Aircraft manufacture.
4. Shipbuilding.
5. Manufacture of telephone, telegraph and
wireless apparatus, excluding radio

receiving set.
6. Mineral oils.
(iii). The field of government control
1. Salt
2. Automobiles and tractors
3. Prime movers
4. Electric engineering
5. Other heavy machinery
6. Machine tools
7. Heavy chemicals, fertilizers and pharmaceuticals and drugs
8. Electro-chemical industries
9. Non-ferrous metals
10.Rubber manufactures
11.Power and industrial alcohol
12.Cotton and woolen textiles
15.Paper and Newsprint
16.Air and Sea transport
18.Industries related to defense
 (iv). The field of the private enterprise.
All other industries which are not included
in those three categories, were left open to
private sector.

3. Roll of small and cottage industries

4. Other important features of industrial

Industrial policy resolution
 Socialistic pattern of society.
 Objectives of policy
1. To accelerate the rate of economic growth.
2. To expand the public sector, develop heavy
and machine making industry.
3. To expand the cottage, village and small scale
4. To increase the employment opportunities.
5. To achieve balanced industrial development.
6. To reduce the existing disparities of income
and wealth.
Categorization of industries.

Schedule A Schedule B Private

17 12 Industries Sector
industries Unit


. Schedule A (17 industries)
 Arms and ammunition and allied items of defense equipments.
 Atomic energy.
 Iron and Steel.
 Heavy castings and forgings of iron and steel.
 Heavy plant and machinery required for iron and steel production, for mining, for machinery
tool manufacture and for such other basic industries as may be specified by the Central
 Heavy electrical plant including large hydraulic and steam turbines.
 Coal and lignite.
 Mineral oils.
 Mining of iron ore, manganese ore, chrome-ore, gypsum, sulphur, gold and diamond.
 Mining and processing of copper, lead, zinc, tin, molybdenum and wolfram.
 Minerals specified in the Schedule to the Atomic Energy (Control of production and Use)
Order, 1953.
 Aircraft.
 Air transport.
 Railway transport.
 Shipbuilding.
 Telephones and telephones cables, telegraph and wireless apparatus (excluding radio
receiving sets).
 Generation and distribution of electricity.
Schedule B (12 industries)
 All other minerals except ‘minor minerals’ as defined in Section 3 of
the Minerals Concession Rules 1949.
 Aluminum and other non-ferrous metals not included in Schedule A.
 Machine tools.
 Ferro-alloys and tool steels.
 Basic and intermediate products required by chemical industries such
as the manufacture of drugs, dye-stuffs and plastics.
 Antibiotics and other essential drugs.
 Fertilizers
 Synthetic rubber.
 Carbonization of coal.
 Chemical pulp.
 Road transport.
 Sea transport.
Industrial policy -1991
 Objectives of the policy
 To maintain the sustained growth in productivity.
 To achieve optimum utilization of human
 To attain the international competitiveness.
 To enhance gainful employment.
 To abolish the monopoly of any sector in any field
of manufacture except on strategic or security
Initiatives in the following
 Industrial licensing
 Foreign investment
 Foreign technology agreement
 Public sector policy
Policy measures

 Liberlisation of industrial licensing policy

 Liberlisation of locational policy
 Liberlised policy for small scale sector
 Liberlised policy for Foreign technology