P. 1
Industrial Policy

Industrial Policy

|Views: 61|Likes:
Published by nehparam14

More info:

Published by: nehparam14 on Oct 03, 2010
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less






It lays a wide canvas and sets the tone for implementation of govt regulatory and promotional roles.

Prevent the formation of monopolies(Fiscal. .Rationale Correct the imbalances in the development. Empower the Govt to regulate the establishment and expansion of Pvt sectors Demarcate the areas among public.monetary measures) Guidance for importing Foreign capital. Direct the flow of resources in the most desirable areas o f investment Prevent the wasteful use of scarce resources and ensure their conservation.and Joint sectors. pvt.

Aircraft.IPR-1948 1. Atomic energy etc)  Mixed Sector (Coal . Division of Industries State Monopoly (Arms. Acceptance of the dual Sector.paper mill etc)  Pvt Enterprise  Role of small and cottage Industries .sugar.(Regulatory Role-A utomobiles. fertilizers. Iron Steel etc)  Govt Control.

Industrial Policy-1956 Constitution was adopted Planning Commission Socialism Govt was rich enough to invest in public sector .

Objectives Accelerate the rate of economic growth & speed up industrialization Expand Public Sector and develop heavy and machine making industry Increase employment opportunities Prevent creation of monopolies Reduce disparity o f income and wealth Promote private sector Expand cottage Industry Balanced regional development .

Schedule A had 17 Industries Schedule B had 12 Industries Rest were thrown open to Private Participation 1956 Policy was hailed as the Economic Constitution of India .

.Industrial Policy -1991 Announced on 24th July drastically altered the Industrial scenario of our country.

 Development of Indigenous Technology through greater investment in R&D and bringing in new Technology  Removing regulatory system  Increasing competitiveness of Indian Industries PSU·s on Business lines and cut their loss  Protect the interest of workers  Abolish Monopoly (except on Strategic or Security ground  Link Indian Economy to the Global Market  .† Objectives Build on the many sided gains already made.  Encouragement to Indian entrepreneurship and employment generation.

Industrial Licensing Policy Foreign Investment Foreign Technology agreement Public Sector Policy MRTPC Act .

Merits of 1991 Policy .

Policy was drafted at the behest of IMF. Govt has not announced clear exit policy for sick units (relenting to trade union pressure). which means virtual surrender of economic sovereignty . . Off loading 20% equity in profit making units is a revenue raising exercise than genuine privatization Infrastructural deficiencies will deter foreign investment. Policy is silent on tackling growing industrial sickness .Limitations Scrapping of Licensing means absence of mechanism to determine priorities and to develop backward areas.

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->