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IPR 1948-1990 (3)

IPR 1948-1990 (3)

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Published by: Vijaykumar Ettiyagounder on Nov 01, 2010
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10/29/2013

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Industrial Policy Resolution 1948

‡ Post Independence: well coordinated policy was required ‡ Govt s task: ensure planned and sustainable development ‡ Key Points: 
Mixed Economy: Both Public & private Sectors Division of Industrial Sector Less importance to Foreign Investment Harmonious relations between management and the labour force

‡ This IPR failed to attract private participation and involvement in sectors like Roads or Power.

Industrial Policy Resolution 1956 ‡ Improvement on IPR 1948: focus on a Socialistic Economy ‡ Objectives: 1. Accelerate the rate of growth and speed of industrialisation Develop heavy industry and machine making industry Reduce disparities in income and wealth Prevent monopolies and diversification of economic power Salient features: ‡ Division of the industrial sector: ‡ Mutual dependence of public and private sectors: Except Schedule A ‡ Emphasis on balanced development of agriculture and industries in each region . 4. 2. 3.

capacity. expansion ‡ Reduction of regional inequalities:  Promotion of ancillary and small scale units in backward areas  Providing basic infrastructure Major Developments ‡ Formation of MRTP (1969): recommended by Monopolies Inquiry Commission(1964) ‡ Industrial Licensing Policy Inquiry Committee:  to probe short comings of Licensing Policy  new set of directions on licensing in 1970 : more restrictions on large industrial houses .Industrial Policy Resolution 1956 ‡ Providing assistance to the private sector and controlling them:  capital sharing. providing fiscal incentives  IRD Act 1951: need of licence even for substantial expansion  Promoted Bureaucracy and gave control in approval of location.

200 million would have a different treatment .Industrial Policy Statement 1973 ‡ Focused on : building a competitive market and promoting small and medium entrepreneurs ‡ Small and medium firms were given preferences ‡ License not required for non MRTP companies for expansions of upto Rs. 10 million. ‡ These exemptions were not allowed for foreign companies or for MRTPs ‡ differentiated small scale industries from large ones:  Firms exceeding Rs.

 Special attention on Tiny sector (investment <1lakh. operating in area with population <50000)  Industrial Development bank of India was set up to take care of credit requirement of this sector. ‡ Promotion of Small & Cottage Industry:  List of items reserved for these sector were increased from 180 to 500. Salient Features: ‡ Decentralization of the industrial sector: higher participation from small scale. credit facilities. tiny and cottage industries.  District Industries Centre: addresses requirement of raw material. ‡ Close linkage between agriculture and Industrial sector. ‡ Urgency of reviving the energy sector: Heavy investment in generation & distribution. removing disparities and keeping foreign participation away from the sectors where small industries were involved.Industrial Policy Statement 1977 This IPR gave clear instruction regarding the nature of the market.  Foreign Investment were restricted & focus was on reducing regional disparity .

6. Faster and balanced industrialization of the economy Ensuring availability of goods at reasonable prices Better employment prospects Improving the avg. 5. 2. 9. encourage import substitution industries . Objectives: 1. 3. Per capita income of the nation Solving the problems related to energy shortages and transportation facilities Preferential treatment to the agro based industries Promoting the development of the backward rural areas and remove regional imbalance Maximum utilization of the existing capacity Promoting exports. 7. 8. 4.Industrial Policy Statement 1980 IPR 1980 was based on the IPR 1956 and it emphasized on rapid and balanced industrialization and boosting up trade keeping in mind the interests of the common man.

‡ District Industries Centres schemes were reviewed: 71 growth centres were announced. .Industrial Policy Statement 1980 Salient Features: ‡ PSU were restructured: development of management cadres in functional fields ‡ provisions for the Nucleus Plants: Ancillary plants were promoted near large industry set up ‡ Investment limits were redefined for small scale industry ‡ Export promotion by leniency in licensing for export oriented firms. exploitation of alternate energy sources & for contribution in pollution control. ‡ Industries sickness of the undertakings were monitored and encouraged to revive through tax concessions and quick approvals ‡ Special Assistance for: Optimum utilization of energy.

. ‡ Rural areas which had adequate infrastructure like road connectivity and power supply were identified for setting up some of the new undertakings.Industrial policy 1990 ‡ Focus:  promotion or revival(in some cases) of small scale industries  Promotion of Agro based industry ‡ The limits on investment for categorization were again redefined.  Small Scale: raised from 35 lakhs to 60 lakhs  Ancillary: raised from 45 lakhs to 75 lakhs  Tiny Units: raised from 2 lakhs to 5 lakhs ‡ 836 items were reserved exclusively for Small Scale Industries.

Industrial policy 1990 ‡ Delicencing:  Better role of private sector and globalization  Licence requirement for investment was increased to 75 Cr (backward areas) & 25 Cr (sub-urban areas) ‡ Technology inflow was encouraged:  Foreign investment : upto 40% provided landed value doesn t exceed 30% of plant value ‡ Export Promotion: Export Processing Zones (EPZs) where defined. .

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