industrialpolicy from 1948-1991

8/18/2019 industrialpolicy from 1948-1991

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INDUSTRIAL POLICIES


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Industrial Policy | Meaning

Industrial policy eans rules! regulations!principles! policies and procedures laiddo"n #y go$ernent %or regulating!

de$eloping! and controlling industrialunderta&ings in t'e country(

It prescri#es t'e respecti$e roles o% t'epu#lic! pri$ate! )oint! and co*operati$e

sectors %or t'e de$elopent o% industries( It also indicates t'e role o% t'e large!

ediu and sall scale sector(


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Industrial Policy | Meaning

It incorporates +scal and onetarypolicies! tari, policy! la#our policy! andt'e go$ernent attitude to"ards %oreign

capital! and Role to #e played #yultinational corporations in t'ede$elopent o% t'e industrial sector(


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Industrial Policy | O#)ecti$es

Industrial policy stateents 'a$e #eenannounced %ro -./0 on"ards(

A nu#er o% o#)ecti$es 'a$e #een pro)ected #y

t'e 1o$ernent o% India "'ile a&ing industrialpolicy declarations( Soe o% t'e iportant o#)ecti$es can #e

identi+ed as %ollo"s2

-( Ac'ie$ing a socialistic pattern o% society(

3( Pre$enting undue concentration o% econoic po"er(

4( Ac'ie$ing industrial de$elopent(

/( Reducing disparities in regional de$elopent(


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Industrial Policy | O#)ecti$es

5( Pro$iding opportunities %or gain%uleployent(

6( Ac'ie$ing a sel%*sustained econoy(

0( Ac'ie$ing %aster econoic gro"t'(.( Alle$iating po$erty(

-7( Protecting and de$eloping a 'ealt'y sall*scale sector(

--( Updating tec'nology and oderni8ation o%industry(

-3( Li#erali8ation and glo#ali8ation o% econoy(


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Industrial Policy Resolution -./0 95 April! -./0:;

Industrial Policy Resolution 947 April! -.uly! -.07;Industrial Policy! >uly 3/! -..-(

Industrial Policies %ro -./0 to-..-


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Industrial Policy Resolution -./0 95 April!-./0:

T'e 1o$ernent o% India announced its +rstindustrial policy resolution on 5 April!-./0(

T'e policy resolution laid stress on t'e role o%

t'e state in t'e de$elopent o% industry( T'e industrial acti$ities "ere di$ided into %our

#road areas2

-( Ites under central go$ernent control ?

Manu%acture o% ars and aunition! T'eproduction and control o% atoic energy!O"ners'ip and anageent o% rail"aytransport! etc(


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3( Ites under t'e state go$ernent control ?Coal! Iron and Steel! Aircra%t anu%acture!S'ip#uilding! Manu%acture o% telep'one! telegrap'and "ireless apparatus! e@cluding radio recei$ing

sets! Mineral oils! etc(4( Ites o% #asic iportance 9planned regulated #y

central go$ernent: ?Salt! Autoo#iles and Tractors! ElectricEngineering! Ot'er Bea$y Mac'inery! Mac'ine Tools! Bea$y C'eicals! =ertili8ers andP'araceuticals! Po"er! Cotton and oollen Te@tiles! Ceent! Sugar! Paper and Ne"sprint! etc(


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/( Ites %or Pri$ate Sector ? T'e rest o% t'e industrial +eld "ill #e opento pri$ate enterprise(

It also ep'asised on securing acontinuous increase in production andits euita#le distri#ution(

Iportance "as gi$en to sall scaleand cottage industries(


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Industrial Policy Resolution 947 April!-.


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Industrial Policy Resolution 947 April!-.


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Industrial Policy =e# 3! -.64

T'e Industrial Policy Resolution o% -.


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Industrial Policy =e# 3! -.64

Special legislation to protect cottage and'ouse'old industries "as also proposedto #e introduced(

It "as also decided t'at copulsorye@port o#ligations! erely %or ensuringt'e %oreign e@c'ange #alance o% t'e

pro)ect! "ould no longer #e insisted upon"'ile appro$ing ne" industrial capacity(


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Industrial Policy Dec 34!-.66 Industrial Policy Dec 34! -.66 Big'lig'ts

on producing inputs needed #y a largenu#er o% saller units and a&ing

adeuate ar&eting arrangeents( To #oost t'e de$elopent o% sall scale

industries! t'e in$estent liit in t'ecase o% tiny units "as en'anced to Rs(3la&'! o% a sall scale units to Rs(37 la&'and o% ancillaries to Rs(3< la&'(


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Industrial Policy Dec 34!-.66 Industrial processes and tec'nologies

aied at optiu utilisation o% energyor t'e e@ploitation o% alternati$e sources

o% energy "ould #e gi$en specialassistance! including +nance onconcessional ters(


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Industrial Policy Stateent o% >uly! -.07

Industrial Policy Stateent o% >uly! -.07"as #ased on Industrial Policy Resolution947 April! -.


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Industrial Policy Stateent o% >uly! -.07


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Industrial Policy! >uly 3/!-..- 1o$ernent is pledged to launc'ing a

rein$igorated struggle %or social and econoic )ustice! to end po$erty and uneployent and to#uild a odern! deocratic! socialist! prosperous

and %or"ard*loo&ing India( Suc' a society can #e #uilt i% India gro"s as part o%

t'e "orld econoy and not in isolation( 'ile 1o$ernent "ill continue to %ollo" t'e policy

o% sel%*reliance! t'ere "ould #e greater ep'asisplaced on #uilding up our a#ility to pay %or iportst'roug' our o"n %oreign e@c'ange earnings(


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Industrial Policy! >uly 3/!-..- 1o$ernent is also coitted to de$elopent and

utilisation o% indigenous capa#ilities in tec'nologyand anu%acturing as "ell as its upgradation to"orld standards(

1o$ernent "ill continue to pursue a sound policy%rae"or& encopassing encourageent o%entrepreneurs'ip! de$elopent o% indigenoustec'nology t'roug' in$estent in researc' andde$elopent! #ringing in ne" tec'nology!disantling o% t'e regulatory syste! de$elopento% t'e capital ar&ets and increasingcopetiti$eness %or t'e #ene+t o% t'e coon an(


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Industrial Policy! >uly 3/!-..- T'e spread o% industrialisation to #ac&"ard areas o%

t'e country "ill #e acti$ely prooted t'roug'appropriate incenti$es! institutions andin%rastructure in$estents(

=oreign in$estent and tec'nology colla#oration "ill#e "elcoed to o#tain 'ig'er tec'nology! toincrease e@ports and to e@pand t'e production #ase(

La#our "ill #e ade an eual partner in progress

and prosperity( or&ersH participation in anageent "ill #e

prooted(


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Industrial Policy! >uly 3/!-..- Need to preser$e t'e en$ironent and ensure t'e

ecient use o% a$aila#le resources( Maintain sustained gro"t' in producti$ity and gain%ul

eployent and attain international copetiti$eness(

In pursuit o% t'e a#o$e o#)ecti$es! 1o$ernent 'a$edecided to ta&e a series o% initiati$es in respect o% t'epolicies relating to t'e %ollo"ing areas2

-( Industrial Licensing(

3(

=oreign In$estent(4( =oreign Tec'nology Agreeents(

/( Pu#lic Sector Policy(


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A.Industrial Licensing:

. Industrial licensing abolished for all projects except a short list

of 18 industries related to security and strategic concerns, socialreasons, hazardous chemicals etc. (Annex II)

. Areas here security ! strategic concerns predominate,

reser"ed for public sector. (Annex I)

. In projects here imported capital goods are re#uired,automatic clearance gi"en.

. In locations other than cities of more than 1 million population,

no re#uirement of obtaining industrial appro"als from $entral

%o"ernment.. Incenti"es ! in"estments in infrastructural de"elopment, to

promote dispersal to rural and bac&ard areas.

. 'xisting units enabled to produce any article ithout additional

in"estment.


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INDUSTRIAL POLICY 1991

B. Foreign Investment: Approval upto 51 percent foreign equity in high

priority industries.(Anne!III" Imports governed #y general policy applica#le to

other domestic units$ payment of dividentsmonitored #y %BI to ensure that outflo&s onaccount of dividents are #alanced #y eportearnings.

'ther foreign equity proposals$ not covereda#ove$ need prior clearance. A special mpo&ered Board! to negotiate &ith a

num#er of large international firms ) get F*Is

approved.


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+.Foreign ,echnology Agreements: Automatic permissions for foreign technologyagreements in high priority industries(Anne!III" upto a lumpsum payment of %s.1 crore.

For industries other than those in AnneIII$ automatic permissions if no foreignechange is required for payment

All other proposals need specific approval-o permission for foreign technicians$

foreign testing of indigenously developedtechnologies.


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*. u#lic /ector olicy: ortfolio of pu#lic sector investments revie&ed &ith a

vie& to focus pu#lic sector on strategic$ high tech )essential infrastructure.

+hronically sic0 pu#lic enterprises$ referred to Boardof Industrial ) Financial %econstruction (BIF%".

A part of governments shareholding in pu#lic sectoroffered to mutual funds$ financial institutions$ pu#lic) &or0ers.

Boards of pu#lic sector companies! more professional) po&erful.

2'3 system! managements &ould #e granted greaterautonomy ) held accounta#le.

INDUSTRIAL POLICY


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INDUSTRIAL POLICY1991

. 2%, Act: (2onopolistic %estrictive ,rade ractices": %emoval of threshold limits of assets in respect of

2%, +ompanies ) dominant underta0ings.

limination of need of prior approval of +entral4overnment for esta#lishment$ epanding$ merger$amalgamation ) ta0eover.

mphasis on controlling ) regulating monopolistic$restrictive ) unfair trade practices.

na#ling the 2%, +ommission to eercise punitive )compensatory po&ers.


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EIGHTH FIVE YEAR PLAN (1992-97)

Expectt!"#- 7$% pe& ce#t

A##' c*!e+e, &".t* &te /"&

!#,'0t&!e01992-9 3$2 pe&ce#t199-93 4$5 pe&ce#t1993-9% 9$3 pe&ce#t199%-94 12$ pe&ce#t1994-97 7$7 pe&ce#t

A+e&e A##' G&".t* Rte- 5$1


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ELEVENTH FIVE YEAR PLAN (2667-12)

F'ct't!# t&e#,0

2667-65 1%$% pe&ce#t

St&te, ,ec!#!# ".!# t" "

ec"#"8!c 8et,".#

2665-69 2$% pe&ce#t

2669-16 %$ pe&ce#t

2616-11 5$2 pe&ce#t

-


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INDUSTRIAL POLICY 2616-261%

T'e 1o$ernent 'as announced a ne" industrialpolicy %or 37-7*-

T'e policy pro$ides a 3< percent JAT rei#urseent%or +$e years %or large and ediu enterprises!


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ContdKKK

Ma@ii8e eployent opportunities! Ipleent sel%*eployentsc'ees e,ecti$ely! and pro$ides )o#s to local people in t'eupcoing industrial units in t'e states(9Prad'an antri eployentgeneration prograe launc'ed #y t'e go$ernent o% India(:

Proote agro*#ased and %ood processing industry to a&e agriculture

a ost pro+ta#le proposition( In order to ensure producti$e uses o% land! ulti*stored cople@es

%or

icro and sall enterprisesindustries "ill #e constructed eit'ert'roug' departentHs corporations or t'roug' or pri$ate sector

participation at potential sites( Trade Related Intellectual Property Rig'ts 9TRIPR: under ORLD

TRADE OR1ANISATION "ill #e "idely pu#lici8ed so t'at t'ese could #eused to generate ore eployent and trade opportunities(

Attract in$estents in t'e industry and ser$ice sector #y de$eloping

uality in%rastructure(


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TELVTH FIVE YEAR PLAN (2612-17)

CHALLENGES FACING

A$D'8p!# !# I#,!# 8&:et0

;$I#,!# I#,'0t& #ee,0 t" e c"0te


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'adi! "'ic' sy#oli8ed sel%*reliance and eancipation during t'e%reedo struggle in India! 'as lost its s'een o$er t'e years(

In -.

industrialpolicy from 1948-1991

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