The british policy was that government was illqualified to advance the industrial development and all such matters should be left to private enterprise. Industrial policy is a relatively demanding approach. It laid down that besides arms and ammunition, atomic energy and railway transport, which would be the monopoly of the central government, the state would be exclusively responsible for the establishment of new undertakings in six basic industriesexcept where, in the national interest, the state itself found it. Japans industrial policies are largely, though not solely, responsible forits eco nomic recovery from world war ii and its increasing preeminence in hightechnology industries. Therefore, industrial policy of 1948 came up to give direction to industrial movement in the county. Indian industrial policy since 1956 narendra jadhav. The industrial policy was announced by government of india in 1948 and industries act 1951 was passed to give a material shape to this policy. Industrial policy is any policy that attempts to achieve the economic and noneconomic. The postwar record and the case of supercomputers japan is the worlds most successful practitioner of industrial policy. 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 state and industrial 11 policy in chinese economic. Industrial policy resolutions and industrial policy statements.
A comprehensive industrial policy was formulated in 1956. Main features of industrial policy resolution of 1956. In 1947, after independence, india has changed the scenario. This policy was later replaced by incumbent congress government in 1980. October 2016 christian stensrud the united states has a long history of debate regarding industrial policy. 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.
In a mixed economy of our sort, the government should declare its industrial policy clearly indicating what should be the. Industrial policy resolution 1948 6 april, 1948 the government of india announced its first industrial policy resolution on 6 april,1948. The government takes measures aimed at improving the competitiveness and capabilities of domestic firms and promoting structural transformation. Industrial policy 201419 5 investment of inr 1,20,000 crores. Japanese industrial policy the postwar record and the case of. The traditional arguments against industrial policy lose much of.
Industrial policy resolution 1948 6 april, 1948 the government of india announced its first industrial policy resolution on 6 april, 1948. 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 active. Its scope and limits in economics, industrial policy is a relatively new concept that lacks a well accepted definition. The country hand launched a programme of planned economic development with the first fiveyear plan. The industrial policy 1948 emphasised the role of cottage and small scale industries in economic development. Sep 14, 2011 the industrial policy statement 1977 was announced by janata government led by morarji desai on 23 december, 1977. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
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. New industrial policy india pdf download for ias exam. This age came to an abrupt halt with the oil shock of 1973. To a certain extent, emerging market hosts can carry out. 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. After having attained independence, the government of india declared its first industrial policy on 6th april, 1948. Brief history of the industrial regulatory regime in india.
This paper aims to better understand how agencies are. It was the first comprehensive statement on industrial development of india. State must play of progressively active role in the development of industries. Unlike what is commonly believed, the last two decades have not seen the twilight of industrial policy. Industrial policy from 1948 1991 linkedin slideshare. The 1956 policy continued to constitute the basic economic policy for a long time. The first industrial policy after independence was announced on 6th april 1948. Investment promotion the current focus of industrial agencies and policies is primarily to attract new investment into their industrial zones. Industrial policy resolution 1948 outlined the approach to industrial. Industrial policy resolution of april, 1948 classified industries into four categories, which are as follows.
Subject to statutory requirements, the departments will develop a system. The industrial policy 1948 was presented in the parliament by then industry minister dr. Building on the socalled bombay plan1 in the preindependence era, the first industrial policy. 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. The industrial policy 1948 was a sincere depart from the british era policy of lessez faire free economy model followed by british rulers. In france, idfas platform facilitates the collaboration between public and private industry and technology stakeholders.
Normalizing industrial policy iii about the series the commission on growth and development led by nobel laureate mike spence was established in april 2006 as a response to two insights. There are, however, important policy lessons to learn from the complexities of the experience, which includes both successes and failures. Industrial policy in india with special emphasis on new industrial policy in 1991 duration. It sought to provide encouragement to these industries in indias industrial development programmes because these industries make use of local resources and provide larger employment opportunities. The industrial policy resolution of 1948 deals with a number of. Industrial policy resolution of 1956 ipr 1956 is a resolution adopted by the indian parliament in april 1956.
It laid down that besides arms and ammunition, atomic energy and railway. Capacity to implement industrial policy will also be strengthened across economic. The main goal of this policy was to accelerate the industrial development by introducing a mixed economy where the private and public sector was accepted as important in the development of the economy. New industrial policy india pdf download for ias exam, industrial policy 1991 and earlier industrial policy notes for ias,upsc examination pdf download. 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. Industrial policy in the united states briefing note. The industrial activities were divided into four broad areas. 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 focused on all or part of the manufacturing sector. Industrial policy is usually seen as separate from broader macroeconomic policies, such as tightening credit and taxing capital gains. The industrial policy statement 1977 was announced by janata government led by morarji desai on 23 december, 1977. Industrial policy is defined as the strategic effort by the state to encourage the development and growth of a sector of the economy. Summary of indias industrial policy economics discussion.
Industrial policy resolution of 1948industrial policy resolution of 1948 the government of india announced its fi rst industrial policy resolution on aprilthe government of india announced its fi rst industrial policy resolution on april 6, 1948. The policy resolution laid stress on the role of the state in the development of industry. This was the first time when a noncongress government was ruling dispensation at centre. The state has witnessed excellent progress in the core sector.
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. Building on the socalled bombay plan1 in the preindependence era, the first industrial policy resolution announced in 1948 laid down broad. Developing uk industrial policy esad december 2009 5 glorieuses, the glorious thirty. The latter, particularly if implemented widely across nations, is the most direct pathway to sustainable industrial development.
National industrial policy framework the growth spurt of the past few years has been underpinned by two key factors. 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. The following are the main features of industrial policy of 1948. The first is a household consumption increase facilitated by relatively low interest rates, low inflation, a broadening middle class resulting from employment equity, and the spread of social grants to the poor. The main historical importance of this policy is that it ushered india in the system of mixed economy. Large scale industries were divided into four categories. Industrial policy coordination mechanisms will be strengthened at both the national and subnational level, with a particular focus on fasttracking critical policy and projectsspecific choices. Industrial policy in the united states article pdf available in journal of industry competition and trade 73. This fact has been confirmed in all the fiveyear plans of india.
At that time the constitution of india had not taken final shape nor was the planning commission constituted. Industrial policy as a prospective development tool has traditionally been associated with a desire to use trade protection to promote infant industries that grow to become internationally competitive, while generating externalities and spillovers to compensate the. The traditional arguments against industrial policy lose much of their force when we view industrial policy in these terms. In their view it was the change away from indias traditional industrial policy in 1991 towards liberalisation, deregulation, and market. 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. October 2016 christian stensrud between 1970 and 2005, irelands average fiveyear gross national product gnp growth rate was four per cent per annum. I am aware that, the national industrialization policy is a product of extensive and prolonged. Hence the right way of thinking of industrial policy is as a discovery processone where firms and the government learn about underlying costs and opportunities and engage in strategic coordination. Pdf indias industrial policy and performance since independence. This is a propitious time to conduct such an assessment. In section iv, i discuss existing industrial policy programs and evaluate them in light of the foregoing discussion.
Wade 1990 chapters 4 to 6 documents in great detail the case of taiwan. Contemporary debates about industrial policy as a development tool focus on how best to overcome these market failures and other difficulties. The national industrial policy contains a framework to guide specific policy actions and offers policy makers, government functionaries, and private sector operators a coherent direction to guide coordinated performances and implementation of the policy. Japanese industrial policy the postwar record and the case. Before independence, india had no policy for industrialization. Supporting sectorfocused business environment reform in developing countries, 2015. New industrial policy of the government, objectives of. First, poverty cannot be reduced in isolation from economic growthan observation that has been overlooked in the thinking and strategies of many practitioners. In france, the years 19451975 are referred to as les trente. This paper identifies the ingredients for what it calls lighthanded industrial policy to address these obstacles. 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. Industrial policy in the republic of ireland briefing note.
Minimum inspection would encompass a system of no random inspections without cause. Chinese economic development in terms of promoting structural change and thereby growth in productivity and employment. People of the new state have very high expectations from the telangana state government for creating. The role of industrial policy as a development tool. Now, the state has adopted a policy for investment promotion in the noncore sectors, i. Of india industrial policy resolution 1948 6 april, 1948 the resolution emphasized at the following. The importance to the economy of securing a continuous increase in production. Building on the socalled bombay plan1 in the preindependence era, the first industrial policy resolution announced in 1948 laid down broad contours of the strategy of industrial development. Industrial policy of 1948 the industrial policy of 1948 broadly divided industries into four categories such as. Taking account of a globalised market with growing interlinkages between trade, investment, services, technology and global value chains, todays industrial policy initiatives reflect a more comprehensive perspective on the steps required to build.
903 1533 871 465 1493 465 949 487 1352 1339 577 1379 1581 835 1438 514 826 755 339 836 67 956 130 875 931 228 251 847 564 132 126 1440 1193 1455 1411 28 134 673 406 1480 392 802 554 377 1267 506 618