industrial policy of india 1991
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INDUSTRIAL POLICY OF INDIA REFORMS SINCE
1991
A SEMINAR ON BUSINESS ENVIRONMENT
DIGIN GEORGEDRISYA .C .PFAZEEN RASHEED . A. KGREESHMA . V .S
WE…
INTRODUCTION OBJECTIVES HIGHLIGHTS OF POLICY AREAS MERITS LIMITATIONS IMPACT OF INDUSTRIAL POLICY
CONTENT
Industrial policy means rules, regulations , principles , policies , and procedures laid down by government for regulating , developing and controlling industrial undertakings in the country. It prescribes the respective roles of the public, private joint and cooperative sectors for the development of industries. It also indicates the role of the large , medium , and small sector . It incorporates fiscal and monetary policies, tariff policy , labor policy and the government attitude towards foreign capital, and role to be played by multinational corporations in the development of the industrial sector.
MEANING: INDUSTRIAL POLICY
Industry has played A central role in India’s developmental effort. Industry has enjoyed A special position as the sector that would lead India in to modern world .It reduces economic dependence on other countries and generate other income needed to eliminate poverty.
NEW INDUSTRIAL POLICY AN INTRODUCTION
Nehru laid the foundation of modern India . The goals and objectives set out for the nation by Nehru. Rapid agricultural and industrial
development of our country Rapid expansion of opportunities for
gainful employment Progressive reduction of social and
economic disparity Removal of poverty and attainment of
self reliance
Industrial policy resolution of 1948
Industrial policy resolution of 1956
Industrial policy resolution of 1973
Industrial policy resolution of 1977
Industrial policy resolution of 1980
Industrial policy resolution of 1991
INDUSTRIAL POLICIES
Continuous increase in production Ensuring the equitable distribution of revenue Improvement of role of small and cottage
industries Outlined the approach to industrial growth
and development Emphasized the importance of securing a
continuous increase in production and ensuring its equitable distribution.
INDUSTRIAL POLICY 1948-MAIN OBJECTIVES
To accelerate the rate of economic growth. To expand the public sector, develop heavy and
machine making industry To increase employment opportunities To prevent creation of monopolies To build up A large and growing pvt. Sector To expand the cottage, village,and small scale
industries To achieve balanced industrial development
INDUSTRIAL POLICY 1956-OBJECTIVES
Certain structural distortions called for policy changes in IPR 1956
Provide for a closer interaction between the agricultural and industrial sectors
Identify products to be reserved for the small scale sector: list of industries exclusively reserved for the small scale sector expanded from 180 items to more than 500 items.
INDUSTRIAL POLICY 1973-MAIN OBJECTIVES
Highest priority to the generation and transmission of power.
Identify high priority industries. Attract foreign companies in our country.
Within the small scale sector, a tiny sector was also defined with investment in machinery andequipment up to Rs.1 lakh & located in townswith a population < 50,000 according to1971 census figures, and in villages.
INDUSRIAL POLICY 1977-MAIN OBJECTIVES
Proposal for special legislation to protect cottage and household industries
Emphasis on decentralization and role of small scale industries.
Prevention of monopoly and concentration of economic power
Maximum production of consumer goods.
Promoting competition in the domestic market Technology up gradation and modernization. Encourage foreign investment in high
technological areas. To maximize production. To strengthen agricultural base by giving priority
to agro based industries. Consumer protection against high prices and bad
quality goods.
INDUSTRIAL POLICY 1980-MAIN FEATURES
Self reliance to build on the many sided gains already made
Encouragement to Indian entrepreneurship, promotion of productivity and employment generation
Removing the regulatory system and other weakness
Increasing the competitiveness of industries for the benefit of the common man
Enhanced support to the small scale sector
INDUSTRIAL POLICY 1991 -OBJECTIVES
Conti… Incentive for the Industrialization of backward
areas Ensure running of public sector undertakings
on business lines and cut their losses Development of indigenous technology through
greater investment in R&D and bringing in new technology to help Indian manufacturing units attain world standards
Protect the interest of workers
Conti… Abolish the monopoly of any sector in any field of
manufacture except on strategic or security grounds
To link Indian economy to the global market so that we acquire the ability to pay for imports and to make us less dependent on aid.
De reservation of industries for the public sector De licensing Abolition of phased manufacturing program Removal of mandatory convertibility clause Amendment of monopolies restrictive trade practices Encouragement to foreign investment Change of policy in small scale industry
HIGHLIGHTS OF 1991 POLICY
Industrial licensing policies Foreign investment Foreign technology agreement Public sector policy MRTP act
AREAS OF INDUSTRIAL POLICIES BY GOVT.
Competitive industry Freedom to entrepreneurs Liberalization Performance of govt. Undertaking Integration with world economy Open the economy
MERITS OF INDUSTRIAL POLICY 1991
No priority to backward area No solutions for sickness of industries Reduction in the expected foreign investment Surrender to IMF Offloading of 20% equity in profit making
LIMITATIONS OF INDUSTRIAL POLICY
Changes in technology Product diversity Market concentration Geographical dispersion Destabilization of protected environment Export-a matter of survival All round competition Buyer’s market
IMPACT OF CHANGES IN GOVT. POLICY IN BUSINESS AND INDUSTRY
CONCLUSION
ESSENTIALS OF BUSINESS ENVIRONMENT- K. ASWATHAPPA - HIMALAYA PUBLISHING HOUSE- SEVENTH EDITION -2000
BUSINESS ENVIRONMENT- SURESH BEDI-
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