Present industrial policy of india. New Industrial Policy 2022-12-12
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The present industrial policy of India, also known as the Industrial Policy Resolution of 1956, was formulated by the Government of India in order to accelerate the pace of industrialization in the country and to promote the development of a self-reliant and diverse industrial sector. The policy has undergone several changes over the years, but its main objectives remain the same: to increase the rate of economic growth, to create employment opportunities, and to improve the standard of living of the people.
One of the key features of the present industrial policy of India is the emphasis on the development of small-scale industries. The policy provides for various incentives and subsidies to encourage the growth of small-scale industries, which are considered to be the backbone of the industrial sector in India. These industries play a crucial role in the economic development of the country, as they provide employment to a large number of people, especially in rural areas, and contribute significantly to the production of goods and services.
Another important aspect of the present industrial policy of India is the promotion of foreign investment in the country. The policy encourages foreign companies to set up their operations in India, as it is seen as a way to bring in advanced technology and expertise, which can help improve the competitiveness of Indian industries. At the same time, the policy also lays down certain conditions and restrictions on foreign investment, in order to ensure that the interests of Indian industries are protected.
The present industrial policy of India also focuses on the development of infrastructure and the creation of an enabling environment for the growth of industries. The policy provides for the development of roads, ports, airports, and other infrastructure facilities, which are essential for the smooth functioning of industries. It also provides for the development of research and development facilities, and encourages the use of modern technologies and techniques in the production process.
In conclusion, the present industrial policy of India is a comprehensive policy that aims to promote the development of a diverse and self-reliant industrial sector in the country. It focuses on the development of small-scale industries, the promotion of foreign investment, and the creation of an enabling environment for the growth of industries. The policy has played a significant role in the industrialization of India, and has contributed significantly to the country's economic growth and development.
Indian Industrial Policy: Definition, Policies Over Years, Videos, Examples
The objectives of disinvestment were to raise resources through sale of PSUs to be directed towards social welfare expenditures, raising efficiency of PSUs through increased competition, increasing consumer satisfaction with better quality of goods and services, upgrading technology and most importantly removing political intervention. While freeing Indian industry from official controls, opportunities for promoting foreign investments in India should also be fully exploited. Regularisation of excess illegal capacity and permission for automatic expansion in many industries would spell the danger of further concentration of economic power. These industries include aluminum, machine tools, fertilizers, road and sea transport, synthetic rubber, power, antibiotic and other drugs etc. These included Arms and ammunition, Atomic energy and Rail transport.
Free Essay: THE PAST, PRESENT AND FUTURE OF INDUSTRIAL POLICY IN INDIA
Sources: CSO; Economic Survey 2003-04. Moreover, no step was taken in respect of non-utilisation of licence, while sometimes production in excess of licensed capacity also had gone unnoticed or unchecked. Post-Independence Period: The advent of independence brought in a new era in economic policy. Retrieved 25 August 2012. Poverty was caused by a huge unemployment and lack of educated people. Minimum Economic Size: To ensure that investment leads to production of goods of international standards, the units would have to conform to the MES.
Oil, mining,cement and metal industries also progressed significantly. The early 1950s trend-break relates to the fact that there was a big increase in long-term economic growth in the second half of the 20th century independent India compared to the first half British- ruled India. This policy required that both the sectors should play complementary role and cooperation of the private sector may be sought for starting units in public sector under any category and the State by its fiscal and financial policies would foster the group of industries in the private sector also. World Bank 2002 , World Development Report, Washington DC, Oxford University Press, NY. Now, entrepreneurs are required to fill an information memorandum of new projects and substantial expansion. In the immediate post-independence period, inflation appeared, production declined, and economic security dwindled. The economy had stagnated since the late nineteenth century, and industrial development had been restrained to preserve the area as a market for British manufacturers.
Technology of small units would be up-graded and a time- bound ancilliarisation programme in certain industries would be introduced to promote dispersal of industry and growth of entrepreneurship. Indian Policy Statement 1977 Indian Policy Statement was announced by George Fernandes then the union industry minister of the parliament. This compares favourably with the record of other developing countries including China, as suggested by Graph-4. Foreign equity proposals need not necessarily be accompanied by foreign technology agreements. In its Resolution on Industrial Policy in 1948, the Indian government expressed a strong preference for Indian enterprise, but indicated willingness to allow some collaboration with foreign firms: … while it should be recognized that participation of foreign capital and enterprise, particularly as regards industrial technique and knowledge, will be of value to the rapid industrialization of the country, it is necessary that the conditions under which they may participate in Indian industry should be carefully regulated in the national interest.
It is widely recognised that the country also has broad-based technological capability as evidenced by the fact that India is one of the three countries in the world Japan and US being the other two that has built super-computers on their own. Main feature of the changed world economy is the moderate of the heightened economic Globalization which provides new external challenges as well as opportunities for growth Gupta, 1995. Emphasis would be placed on evolution of managerial cadres in functional field of operations, marketing, finance, communication systems. To this end, it lays down the legal reforms that are going to be implemented to facilitate the same as well as the guiding principles for further structural reform. The power of the Soviet Union was beginning to diminish, with the collapse of the Berlin Wall and in China Ruan et al, 1995 Deng Xiaoping was moving the communist party of China towards considering economic reforms that would lead to a drift towards market based solutions away from the Centrally-planned ideology. These colleges, often established by private sector initiatives, were complemented by the Government establishments of elite institutions, such as the IITs, which are world-class. The reasons for the revision were: i introduction of the Constitution of India, ii adoption of a planned economy, and iii declaration by the Parliament that India was going to have a socialist pattern of society.
Other notable trends are the emphasis on sustainable manufacturing and Atmanirbhar Bharat which can be seen as an extension of the Make In India policy initiative. There is, however, a large body of analysis and evidence that suggests that this characterization of benign neglect by the government is grossly inaccurate and misleading. It is not possible for a nation that is industrialized to do this without first having a market economy as such this should be the first Priority of a NIC. The issue of Privatization in India has to be understood in the context of the relative incompetence of the public sector industries, lack of financial resources, defective competition system, and continuous labour problem. .
A list of high-priority and investment-intensive industries were delicensed and could invite up to 100% FDI including sectors such as hotel and tourism, infrastructure, software development etc. The concept of Liberalization: There is acceleration economic policy reform in the developing world in current period which is visualized as significant consequence of a changed world economic system. It is argued on the other hand that public sector performance should not be judged on the criterion of profitability only. Earlier there used to be concepts of Small Scale Industries, Tiny enterprises and ancillary units. As Dosi et al. This would require imaginative applications of ICT and further technological developments in agriculture, industry and services.
Indira Gandhi as Prime Minister was installed in 1980. They have to benchmark their production against the best in the world. However, Graph-2 also suggests that Brazil and Mexico albeit with higher per capita incomes than that of India have lower proportions of output emanating from the industrial sector in 2000 compared with 1980. Economically Viable Activities in the Rural Areas: This policy has pledged itself to the creation of such an industrial climate which would generate economic viability in the rural areas. A company that was not performing well and maintained only a small market share before deregulation would also be likely to benefit from this act.
