INDUSTRIALISATION IN INDIA

PRESENTED BY :

ANINDA DAS

ANJALI PRIYADARSHI

ARADHANA TRIPATHI

ARPITA JAISWAL

ARVIND VERMA

INDUSTRIALIZATION ININDIA

The Indian business scenario in past The phase of growth and development of Indian

industry Post independence industrialization Gandhian concept of industrialization

Ancient Period (Upto 750 AD)

India had developed scientific and elaborate system of governance and managing people

Trade practiced under the barter system

Western coast hub of commercial activities in 6th century BC

India established link with other countries on commercial terms

Guild system to protect the interest of traders artisans and producers

Medieval Period(750 to 1757 AD)

Growth of towns and a marked expansion of craft productionTrade & commerce flourished in & outside the countryMetallic currency introduced for the first time

Trade Routes

Construction of well connected trade routes through roadways

Network indicated involvement of deep interiors in exchange of commodities

Connectivity developed by the way of ports

BUSINESS

Traders came from all

over the world Use of indigenous financial

instrument “hundi” No. of important industries

developed such as textiles,

metal work, stone work, sugar etc.

Establishment of Karkhanas Establishment of royal karkhanas Generation of employment through

“karkhanas” No market ~ Dependency of public

authority

Registration of Traders

1. Registration in employers court with details of the nature and volume of business

2. Strict laws to regulate and check unfair trade practices

Use of “Public Distribution System”

Artisans in Mughal India

Two types :

Bazaar artisans independent Not employee of rich and powerful Lowly skilled Poor Exploited by merchants

Super skilled artisan Employee of the karkhanas Eminent in his art

MODERN PERIOD

A. British India

B. Post independent India

Industrialization in Pre-Independence Period

Britisher’s saw India as: Vast land Large population Supplier of raw material Market of British industrial production No increase in India’s per capita

income from 1757-1947

Artisans panchayats Present in every craft towns of gangetic plains

Karkhanadars played multiple roles:• To avoid fraud • Maintaining coordination

Merchant communities:• Community was a collection of families

connected both socially and economically.• Business communities were hierarchical organization.• Followed certain recognizable rules & pattern of seniority.

Industrial Revolution & Industrialization (18th-19th Century )

Major market for all manufactured goods produced by industrial Britain.

Supplier of raw materials. Exploitation of workers because of cheap

labor . Acts were passed :• The Factories Act ,1948• The Trade Union Act ,1926• The Mines Act ,1952

Coal & Mines & Mining

First real commercial scale mining of coal commenced in 1814.

15000 tons of coal mined annually by 1831.

Production of coal increased on demand by railways , steam ships and other industries.

Paper

Bally mills established in Hooghly in 1870 followed few other mills.

Plantation industries

One of biggest contribution of the British . Indigo , tea , rubber developed. Establishment of Tea Plantation in Assam in 1834. East India company gave inducements for growing

coffee by granting land on long lease.

Iron & steel

First steel mill with modern production methods established in 1808.

The govt. made attempts to establish the iron and steel company industry.

Cotton industries: This industry suffered the most. Indian handloom replaced by cheap

cloth from Britain. First cotton mill started in Bombay in

1854. By the end of 19th century the number of

mills rose to 193.

Railways

Revolutionalized the Indian transport system Opened new frontiers for business at distant

location. Movement of people and goods fostered the

growth of every business.

Post and Telegraph Helped in breaking the barriers of time and

distance. Calcutta , Bombay , Madras and Peshawar well

all connected through telegraph .

Industrialization during the beginning of 20th century (till 1947)

Swadeshi movement 1905 gave a boost to Indian industries.

JRD Tata established the first iron & steel industry in 1911 at Jamshedpur.

Growth of trade and auxiliaries to trade such as banking , insurance , warehousing , communication etc.

In 1944 , industrialists and technocrats a plan 15 year investment plan for India called the “Bombay plan”.

Industrialization after independence

Post-independence industrialization can be divided into four distinct era:

Nehru era Indira Gandhi Janta Rule Post 1990’s

Nehru’s Industriial policy

Believe that a powerful state with centralized economy was essential.

First 5 year plan was programmed of public expenditure.

Second 5 year plan reflected Nehru’s vision of plan economic development and fabian socialism.

Socialistic pattern of society was key objective of social and economic policy.

The second 5 year plan was moderate success.

It was aborted in 1957 when foreign exchange crisis engulfed the country.

Third plan (1961-65) reflected disconnect between target and performance , requirement and resources.

Public policy in this era had set emotion a more or less stagnant colonial economy .

Indira Gandhi’s Era (1960-70)

During her regime ,two major shifts took place. Neglect of agriculture was reversed. In 1967, Industrial Licensing Policy Inquiry

Committee In 1969, Monopolies and Restrictive Trade

Practices (MRTP) Act introduced. In 1970, New Industrial Policy was setup that

confined the role of large business houses and foreign companies to core heavy sectors.

The Janta Rule

This government had lesser success in achieving industrial reforms

Launched the Sixth Five-Year Plan, aiming to boost agricultural production and rural industries

Seeking to promote economic self-reliance and indigenous industries, the government required multi-national corporations to go into partnership with Indian corporations

The legalisation of strikes and re-empowerment of trade unions affected business efficiency and economic production.

Genesis

• Balance of payment crisis• License-permit-quota Raj• To unshackle the industrial sector

from administrative and legal control• To make industry competitive by

increasing efficiency

Implementation of NIP 1991 Contraction of public sector Liberlaisation of industrial licensing

policy Introduction of Industrial Entrepreneurs

Memorandum for industries not requiring compulsory licensing

Liberalization of location policy Five year tax holidays to power

generation industries

Divestment of PSUs Encouragement to Foreign Investment Permission to raise capital from foreign

markets MRTP Act replaced with Competition Act