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The pattern of industrial growth in India over the past few decades has the following main features:<br>(i) Diversification of industrial structure with development of a variety of consumer<br>goods, capital goods, heavy and basic industries.<br>(ii) Increase in production of capital goods, metals, cement, etc., which provide a<br>basis for further industrial growth.<br>(iii) Slow growth of consumer goods industries such as cotton cloth, edible oil,<br>Vanaspati, tea, etc which was mainly due to slow growth of agriculture.<br>(iv) Rapid growth in production of consumer durable goods like televisions, washing<br>machi
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Q) Examine the performance of Industrial Sector in India. What are the main features of the Industrial policy in India since 1991. The pattern of industrial growth in India over the past few decades has the following main features: (i) Diversification of industrial structure with development of a variety of consumer goods, capital goods, heavy and basic industries. (ii) Increase in production of capital goods, metals, cement, etc., which provide a basis for further industrial growth. (iii) Slow growth of consumer goods industries such as cotton cloth, edible oil, Vanaspati, tea, etc which was mainly due to slow growth of agriculture. (iv) Rapid growth in production of consumer durable goods like televisions, washing machines, refrigerators, automobiles etc. (v) Strengthening of infrastructure by achieving high growth in such sphere as power generation, increased production of coal, petroleum, transport equipment etc. (vi) Achieving a more balanced industrial structure.
Problems of Industrial growth The following are some of the major problems and obstacles that are being faced in the process of industrialisation of the country: 1. Poor capital formation - Poor rate of capital formation is considered as one of the major constraints which has been responsible for slow rate of industrial growth in India. 2. Political factor - During the pre-independence period, industrial policy followed by British rule was not at all favourable for the interest of the country. 3. Lack of infrastructural facilities - India is still backward in respect of infrastructural facilities and it is an important impediment towards industrialisation of the country. 4. Poor performance of the agricultural sector - Industrial development of India is very dependent on the performance of the agriculture sector. Poor performance of the agriculture retards the development of industries in India. 5. Dearth of skilled and efficient personnel - The country has been facing the problem of dearth of technical and efficient personnel required for the industrial development of the country. In the absence of proper personnel, it has become very difficult to handle such sophisticated computerized machinery necessary for industrial development of the country. 6. Elite oriented consumption - In recent years, a strong tendency to produce rich men's goods has been established among the large industrial houses. Accordingly, the production of "white goods" like refrigerators, washing machines, air conditioners, etc. expanded substantially along with the other luxury products. But the production of commodities for mass consumption has recorded a slow growth rate. 7. Poor performance of the Public Sector - Inspite of attempting a substantial expansion during the planning period, the performance of public sector enterprises remained all along very poor. This sector had not generated the required surplus necessary for furthe investment in the industrial sector of the country. 8. Regional imbalances— Concentration of industrial development into some few states has raised another problem of industrial development of the country.
9. Industrial sickness - Another problem faced by the industrial sector is its growing sickness due to bad and extremely inefficient management. Main Features of Industrial Policy in India Since 1991: 1. Liberalization and Deregulation: ○ The industrial policy aimed at reducing government intervention and promoting market forces. Licensing requirements were significantly relaxed, and industries were given more freedom to operate. 2. FDI Liberalization: ○ The policy facilitated higher FDI limits across various sectors, allowing for greater foreign participation in the Indian economy. Automatic approval routes were introduced to simplify the FDI approval process. 3. Privatization: ○ The government initiated the privatization of state-owned enterprises, encouraging private sector participation and reducing the role of the public sector in industries. 4. Export Promotion: ○ Export-oriented policies were implemented to boost India's participation in global trade. Special Economic Zones (SEZs) were established to create export-friendly environments. 5. Technology Upgradation: ○ The policy emphasized technology upgradation and innovation, encouraging industries to adopt modern technologies and improve competitiveness. 6. Encouragement of Small and Medium Enterprises (SMEs): ○ Policies were formulated to support the growth of small and medium enterprises, recognizing their importance in generating employment and fostering entrepreneurship. 7. Infrastructure Development: ○ Efforts were made to improve infrastructure, including transportation, power supply, and communication networks, to create a conducive environment for industrial growth. 8. Environmental Sustainability: ○ Policies included measures to address environmental concerns and promote sustainable industrial practices, recognizing the importance of balancing economic growth with ecological considerations. 9. Ease of Doing Business:
○ Initiatives were introduced to enhance the ease of doing business, simplify regulatory processes, and reduce bureaucratic hurdles for industrial enterprises. 10.Make in India Initiative (2014): ○ Launched in 2014, the Make in India initiative aimed to promote manufacturing, attract investments, and position India as a global manufacturing hub. 11.Changes in the MRTP Act-: ○ Appropriate changes have been made in the MRTP Act to remove obstacles in the way of growth and expansion of industrial units of the large industrial houses. 12. Greater support to small-scale industries- ○ Small-scale sector has been assured all help and accorded due recognition. Objectives- The major objectives that the Government wants to achieve through the New Policy are as follows: (i) Self-reliance through greater ability to pay for imports through our own foreign exchange earnings. (ii) Encouragement to entrepreneurship and development of indigenous Technology. (iii) Spread of industrialisation in backward areas. (iv) Enhance supports to the small-scale sector. (v) Encouragement to foreign investment and technological collaboration. (vi) Open all manufacturing activity to competition, except the strategic industries. (vii) Sustained growth in productivity and employment. In summary, the post-1991 industrial policies in India reflect a shift towards liberalization, globalization, and private sector participation. While these policies
have led to positive changes, challenges such as infrastructure deficiencies, regulatory complexities, and regional imbalances persist, requiring continued efforts for sustained industrial growth and development. Checkout more at- https://uplevelway.com/
