nd str and n rastr            t re         9.3
                                                           industrial policies of the country. Here we have
        IntroductIon                                       a brief review of the various industrial policies of
     Many of the western economies have already            India till date.
     written their success stories of industrialisation
     leading to accelerated growth and development by          revIew of IndustrIal PolIcIes uPto
     the time India became an independent economy.             1986
     Independent India needed to rejuvenate its
     economy from a completely dilapidated state.          For a better understanding of the Indian economy,
     The country had many tasks in front of it—the         it is advisable to look into the various industrial
     abject mass poverty, shortage of foodgrains,          polices. The official stances keep changing with
     healthcare, etc., calling for immediate attention.    every upcoming industrial policy. Understanding
     The other areas of attention included industry,       these policies become even more important to
     infrastructure, science and technology and higher     understand the finer aspects of the reform process
     education, to name a few. All these areas of          which the country will commence by the early
     development required heavy capital investment as      1990s. Here, a brief review of India’s industrial
     they had been severly avoided by the colonial ruler   policies are being dicussed to serve the purpose.
     for the last 150 years or so. Increasing the growth
     of the economy and that too with a faster pace
                                                           inDustriAl Policy resolution, 1948
     was the urgent need of the economy. Looking at        Announced on 8 April, 1948 this was not only
     the pros and cons of the available options, India     the first industrial policy statement of India, but
     decided that the industrial sector should be the      also decided the model of the economic system
     ‘prime moving force’ (PMF) of the economy—the         (i.e., the mixed economy), too. Thus, it was the
     logical choice for faster growth (a fully established first economic policy of the country. The major
     idea at that time, the world over). The secondary     highlights of the policy are given below:
     sector will lead the economy, was well-decided in            (i) India will be a mixed economy.1
     the 1930s itself by the dominant political forces          (ii) Some of the important industries were
     among the freedom fighters.                                        put under the Central List such as coal,
          As the government of the time had decided                     power, railways, civil aviation, arms and
     upon an active role for the governments in the                     ammunition, defence, etc.
     economy, naturally, the industrial sector was to          (iii) Some other industries (usually of medium
     have a dominant state role—the expansion of the                    category) were put under a State List
     government-owned companies (i.e., the PSUs) to                     such as paper, medicines, textiles, cycles,
     glorious heights. In many ways the development                     rickshaws, two-wheelers, etc.
     of the Indian economy has been the development            (iv) Rest of the industries (not covered by
     of the government sector. Once this idea of state’s                either the central or the state lists) were
     role in the economy went for a radical change
     in the early 1990s with the process of economic
     reforms, the hangover or the drag of it is still          1.    Here this should be noted that India will be a planned
     visible on the economy. The industrial policies                 economy, was well-decided before this industrial policy
                                                                     which articulated for an active role of the state in the
     which the governments announced from time                       economy. The main objective of planning pointed out
     to time basically moulded the very nature and                   at this time was poverty alleviation by a judicious
     structure of the economy. Any discussion on the                 exploitation of the resources of the country. Only a
                                                                      mixed economy did fit such a wish Conference of
     Indian economy must start with a survey of the                  State Industry Ministers, 1938).