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).