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09 Conclusion 2
09 Conclusion 2
CONCLUSION
The 1948 Industrial Policy was in force for eight years and during
interest the private foreign investors were permitted to start oil refineries.
There was, however, one weakness in the policy and its implementation. No
p~iq,riti~s ~ere laid. down, and even if laid down w·ere riot followed.in.pradice.
The result was a drop ofindustrial production, slowing down of the process
where public sector and private sector go side by side. Although mixed
economy has to function under a number of controls which are like to result
in fractions and bottle necks. However, the main merit of the 1948 Industrial
Policy lies in its sincere endeavour to prepare the ground for a mixed or
controlled economy in which both private and state enterprise are assigned
distinct spheres of action. This mixed economy idea forms the basis on .
which industrial programmes of our Five Year Plans have been formulated.
Between 1948 and 1950 niany important developments took place in India~
private sectors side by side. Although, there was no mention of the role of
foreibrn private investment in the Resolution with the result that multinational
Government must have to play the dominant role in the Industrial development
of the country.
well as flexible foundation for the future industrial transformation in the country.
the Industrial Policy Resolution of April 1956. As in the Second Plan, the
1970 is not an entirely new policy but a mere reiteration of the Industrial
282
Policy Resolution of 1956. What has been done is to stress further the need
for expanding the role of the public sector in the economy. The new licensing
· policy of 1970 and the Industrial Policy Statement of 1973 will not mark any
not made any imp~ovement over the system already working. The Industrial
largest for granting industrial licence; (ii) The import substitution policy should
work in co-ordiantion with the licensing policy; (iii) foreign collaboration and
should take their. respective interests into consideration; (iv) re.gional l;>alal)~ed
.
development and dispersal of industries along with checking the growth of
·objectives oflicensing policy, and above all, there should be a design prepared
country. Our planning machinery remains the same, our licensing system is
The I 973 Policy Resolution has kept the concept of joint sector as
hazy as ever. The main idea behind the joint sector is to use it as a promotional
of transitional socialism which has become the basic foundation of our type
of mixed economy. The Industrial Policy ofF ebruary, 197 3 should be viewed
greater attention in defining the role of the private sector with particular
reference to the larger industrial houses. But it virtually failed to identify the
joint sector with a view to making use of private expertise and resources in
by the Industrial Policy Resolution of 1956. The growth of per capita national
income during the last I 0 years (from 1976 to 1977 except for the year 1976)
has been about 1.5 per cent annum and is clearly inadequate to meet the
document which tries to cover almost every aspect of the Indian economy
the one hand, it raises the limit on the utilisation of industrial capacity for the
private sector and on the other hand, it insists that monopoly houses would
May 3 1, 1990 and made a case for the growth of the small-scale industries
just on the lines of the steps taken by the .Janata Government of 1977. An
effort has been made to permit blanket liberalisation with a view to accelerate
the !:,TTOwth of the medium and large-scale sector. The New Industrial Policy
is a curious amalgam ofthe philosophy of the Janata Dal and the philosophy
has been increasing at a much faster rate than in the industrial sector as a
whole. The Indian economy has been undergoing much change especially
_~ ~ince 1991 . The Government of India, init.iated N_ew ~~Of!om.ic Poli9y (t{EP)
on July 1991. The NEP and its structural adjustment programme profess to
make India industry more competitive - both domestically and globally. The
should develop our industry with the help of foreign technologies. Similarly,
the government should also make a serious effort to develop our internal
industries _in our country, the government should try its best to attract foreign