Pdf indias industrial policy and performance since. After having attained independence, the government of india declared its first industrial policy on 6th april, 1948. Classification of industries in india according to the new. Unlike what is commonly believed, the last two decades have not seen the twilight of industrial policy. Ppt industrial policy of india industrial policy employment.
The economics of industrial policy a basic principle underlying public policy in a market economy is that of market failure, or government by exception. The new industrial policy of july 1991 witnessed the border outline for industrial development at present. I 1 the government of india set out in their resolution dated 6 april. The policy resolution laid stress on the role of the state in the development of industry. The industrial policy 1948 was presented in the par. Industrial policy department for promotion of industry. Resolution emphasised the importance to the economy of. Industrial policy resolution 1948 6 april, 1948 the resolution emphasized at the following state must play of progressively active role in the development of industries. The resolution emphasised the importance to the economy of securing a continuous increase in production and its equitable distribution, and pointed out that the state must play of progressively. Shanta devarajan uses examples to explain why industrial policy often fails, although industrialization has been the goal of nearly every government. The committee took up the subject for detailed examination on 27 th november, 2012 and the same was notified vide parliamentary bulletin partii dated 24 th december, 2012. Specific priorities for industrial development were also laid down in the successive five year plans. Industrial policy resolutions and industrial policy statements.
Accordingly, the industries were divided into four broad categories. What are the features of new industrial policy of 1991. It was the first comprehensive statement on industrial development of india. It aimed to centrally control the development and regulation of a number of important industries which affected the economy of the. Salient features of industrial policy statement 1977. Since independence, a series of six industrial policy resolutions aimed at promoting industrial growth and determining a pattern of state intervention and assistance have been announced by the central government. Despite the continual claim that we do not do industrial policy, the us has been more active in promoting particular sectors and industries than is commonly understood. Major objectives of industrial policy resolution 30 april, 1956 are as follows. Competition policy intermediate inputs purchases by poor working class households education and skills vocational training set skills innovation technology support for primary and industrial research commercialisation process and product improvements. Jan 14, 2016 shanta devarajan uses examples to explain why industrial policy often fails, although industrialization has been the goal of nearly every government.
This policy was later replaced by incumbent congress go. Public policy and to provide a fillip to the private sector to make india a. Main features of industrial policy resolution of 1956. The original version of the international standard industrial classification of all economic activities isic4 was adopted in 1948. Third, for every such example there are others where industrial policy has been a failure and may even have impeded development though the counterfactual is complicated. Beyond asserting the principle of nationalization, this policy classified indian industry into four categories josiam et al. A industrial policy resolution, 1948 b industrial policy resolution, 1956 c industrial policy statement, 1977 d none of the above 2. The importance to the economy of securing a continuous increase in production. Industrial policy resolution of april, 1948 classified industries into four categories, which are as follows. Because of the large scale changes, the industrial policy of 1991 or the new industrial policy represents a major change from the early policy of 1956. The government policy towards the small scale industries was highlighted by the industrial policy of 1948 stressing the importance of the sector in the indian economy.
The following are the main features of industrial policy of 1948. The industrial policy specifies the relevant roles of the public, private, joint and cooperative sectors. Resolution dated 6 april, 1948 the policy which they proposed to pursue in the industrial field. Of india industrial policy resolution 1948 6 april, 1948 the resolution emphasized at the following. The industrial activities were divided into four broad areas. New industrial policy india pdf download for ias exam. Jul 16, 2016 after gaining independence on august 15, 1947 it was necessary to give new policy for industrial development, decide priority areas and clear doubts in the minds of private entrepreneurs regarding nationalisation of existing industries. Sep 14, 2011 this policy was later replaced by incumbent congress government in 1980. In april 1956, the indian parliament adopted industrial policy resolution of 1956 ipr 1956. While spelling out the framework of the basic and strategic industries, the industrial policy resolution, 1948, realised cottage and small scale industries to be particularly suited for better utilisation of local resources and achievement of local selfsufficiency in respect of. Traditional views of industrial policy have typically begun with trade protection as a means to promote the creation of infant industries, with the hope that they will grow to become. The main thrust of the 1948 industrial policy was to lay the.
Items under central government control items state government control items of basic importance would be planned 7 regulated by the central government items for private sector. As part of examination of the subject, the committee. Building on the socalled bombay plan1 in the preindependence era, the first industrial policy resolution announced in 1948 laid down broad. This new policy deregulates the industrial economy in a substantial manner. In a psu majority 51 or more of the paid up share capital is held by central. Industrial policy in the united states article pdf available in journal of industry competition and trade 73. The industrial policy resolution of 1948 was followed by the industrial policy resolution of 1956 which had as its objective the acceleration of the rate of economic growth and the speeding up of industrialization as a means of achieving a socialist pattern of society. Therefore, industrial policy of 1948 was drafted on 6th april by the government of india. Chapter i 1 the government of india set out in their resolution dated 6 april, 1948 the policy which they proposed to pursue in the industrial field. The role of industrial policy as a development tool.
Jan 10, 2018 industrial policy resolution of 1956 lecture by. The main criticism against industrial policy arises from the concept of government failure. The industrial policy of india was announced by the central government in the resolution no. Industrial policy of 1948 also recognized the need for securing the participation of foreign capital and enterprises, particularly related to industrial technique and knowledge. In a short period of operation of the 1948 industrial policy, some significant changes took place in the economic and political spheres that called for changes in industrial policy as well. An industrial policy ip or industrial strategy of a country is its official strategic effort to encourage the development and growth of all or part of the economy, often. Industrial policy in the united states briefing note.
Industrial policy resolution of 1948 free download as word doc. The industrial policy of 1948 of india categories your article library. The janata government had a different approach and planning philosophy from congress, and it reflected in its industrial policy also. This the government of india did by a policy resolution on 30 april 1948 called the first industrial policy resolution of 1948, which made it clear that india was going to have a mixed economy. Nondiscriminatory and fair treatment for the private sector.
The 1956 policy continued to constitute the basic economic policy for a long time. Share your knowledge share your word file share your pdf file share your ppt file. Industrial policy resolution 1948 6 april, 1948 the government of india announced its first industrial policy resolution on 6 april, 1948. It emphasizes that the role of the public sector in the economy should be expanded. Industrial policy is seen as harmful as governments lack the required information, capabilities and incentives to successfully determine whether the benefits of promoting certain sectors above others exceeds the costs and in turn implement the policies. The ipr, 1948 also emphasized the importance of smallscale and cottage industries in india. Two of them were under strict control of the state including atomic energy, railways, iron and steel, coal, telephone and. Aug 21, 2009 the first important resolution was issued by govt.
Industrial policy resolution 1948 6 april, 1948 the government of india announced its first industrial policy resolution on 6 april,1948. Industrial policy resolution 1948 free download as word doc. In their view it was the change away from indias traditional industrial policy in 1991 towards liberalisation, deregulation, and market. The industrial policy resolution of 1956 was meant to give. State must play of progressively active role in the development of industries. New industrial policy of the government, objectives of. The government of india announced its industrial policy resolution ipr on april 6, 1948 whereby both public and private sectors were involved towards industrial development. This was the first time when a noncongress government was ruling dispensation at centre. Pdf indias industrial policy and performance since independence. This second industrial policy was announced on april 20, 1956, which replaced the policy of 1948. Jan 31, 2012 industrial policy resolution 1948 6 april, 1948 the resolution emphasized at the following state must play of progressively active role in the development of industries.
The sole element of this resolution was that it introduced india. It is marked as the first comprehensive documented statement on industrial development of india. Industrial policy department for promotion of industry and. This fact has been confirmed in all the fiveyear plans of india. In that connection, the economic and social council adopted resolution 149 a vii of 27 august 1948, which read. In section iv, i discuss existing industrial policy programs and evaluate them in light of the foregoing discussion. Industrial policy industrial policy resolution, 1948 o it declared indian economy as mixed economy o small scale industries and cottage industries were given importance o government imposed restriction on foreign investments industrial policy resolution, 1956 ipr 1956 o this policy laid down the basic framework of industrial policy. Industrial policy resolution of 1956 ipr 1956 is a resolution adopted by the indian parliament in april 1956. A mixed economy means coexistence of the two sectors public and private. The major objectives of the new policy are to build on the gains already made, correct the distortions or weaknesses that might have crept in, maintain a sustained growth in productivity and gainful. Industrial policy resolution, ipr of 1956 stressed the need for reducing regional disparities. The quest for industrial development started soon after independence in 1947.
Summary of indias industrial policy economics discussion. New industrial policy india pdf download for ias exam, industrial policy 1991 and earlier industrial policy notes for ias,upsc examination pdf download. The first industrial policy resolution, announced in 1948, outlined the. The industrial policy resolution 1948 outlined the importance of the economy and.
Indian industrial policy since 1956 narendra jadhav. On april 30, 1956, the government revisited the ipr, 1948 and announced the industrial policy resolution, 1956 ipr, 1956. Gk, general studies, optional notes for upsc, ias, banking, civil services. Generally speaking, this principle is independent of the nature of the mar. October 2016 christian stensrud the united states has a long history of debate regarding industrial policy. Second, there certainly are examples where industrial policy has played this role.
The government of india announced its industrial policy resolution ipr on april 6, 1948 whereby. Industrial policy resolution ipr, 1948 it was p resented in the parliament by then industry minister shyama prasad mukherjee. The industrial policy resolution of 1948 defined the broad contours of the policy delineating the role of the state in industrial development both as an entrepreneur and authority. Oct 05, 2016 but the most important reform measure of the new industrial policy was that it ended the practice of industrial licensing in india. The government announced a new industrial policy on july 24, 1991. Training programme portfolio committee on trade and industry.
The industrial policy statement 1977 was announced by janata government led by morarji desai on 23 december, 1977. To implement the ipr, 1948, the government passed the industries development and regulation act in 1951. One hundred and thirtieth report on industrial policy in the changing global scenario. It emphasises the national significances and the financial development strategy. Which combination of the following factors has driven globalisation in the recent past. Just like the 1948 resolution, the 1956 resolution recognised the critical role of small scale and cottage industries and the need for positively encouraging their healthy development in coordination with large scale industries. Indian industrial policy in the period 1950 to 1980, as embodied in its fiveyear plans, has long been the subject of intense criticism from the powerful neoliberal critics of the countrys development. But the most important reform measure of the new industrial policy was that it ended the practice of industrial licensing in india.