The 1956 policy continued to constitute the basic economic policy for a long time. In april 1956, the indian parliament adopted industrial policy resolution of 1956 ipr 1956. The industrial policy revolution i the role of government. Jun 29, 2018 the government of india has amended first industrial policy of india in 1948. It was well understood that smallscale industries are mainly suited for the utilization of local resources and for creation of employment opportunities. The small and cottage industries were given privileges. Industrial policy industrial policy resolution, 1948 o it declared indian economy as mixed economy o small scale industries and cottage industries were given importance o government imposed restriction on foreign investments industrial policy resolution, 1956 ipr 1956 o this policy laid down the basic framework of industrial policy. Industrial policy resolution of 1956 ipr 1956 is a resolution adopted by the indian parliament.
The fonnulation of industrial policy, 19441949 the industrial policies adopted in the early years after independence for instance, the april 6, 1948 industrial policy statement, and the april 6, 1949 statement on foreign investments, have to be seen in the background of the preindependence debates on the. Chapter i 1 the government of india set out in their resolution dated 6 april, 1948 the policy which they proposed to pursue in the industrial field. In their view it was the change away from indias traditional industrial policy in 1991 towards liberalisation, deregulation, and market. The resolution emphasised the importance to the economy of securing a continuous increase in production and its equitable distribution, and pointed out that the state must play of progressively. Industrial policy resolution, 1948 the policy aimed at outlining the approach to industrial growth. The new industrial policy was brought to address the changing environment. New industrial policy india pdf download for ias exam. To implement the ipr, 1948, the government passed the industries development and regulation act in 1951. The government of india announced its first industrial policy resolution on 6 april, 1948. Accordingly, the industries were divided into four broad categories. New industrial policy of the government, objectives of. This second industrial policy was announced on april 20, 1956, which replaced the policy of 1948. Highlights of industrial policy resolution 2007 ipr 2007 has been formulated after going through an elaborate iterative process consulting all stakeholders, including industry associations, sector specific associations, chambers of commerce and industry, experts and departments concerned and comparing industrial policy of.
The industrial policy resolution of 1948 was followed by the industrial policy resolution of 1956 which had as its objective the acceleration of the rate of economic growth and the speeding up of industrialization as a means of achieving a socialist pattern of society. Industrial policy department for promotion of industry and. Industrial policy of 1991 industrial development in india. Its main focus was that the state must play an active role in the development of industries with government stressing on the socialistic pattern of society.
Aug 21, 2009 the first important resolution was issued by govt. It sought to provide encouragement to these industries in indias industrial development programmes because these industries make use of local resources and. The importance to the economy of securing a continuous increase in production. The ipr, 1948 acknowledged the importance of smallscale industries in the overall industrial development of the country. It laid down that besides arms and ammunition, atomic energy and railway. Industrial policy resolution 1948 free download as word doc. In order to accelerate industrial development in india, and in accordance with the changing circumstances, various industrial policies were declared in the years 1948, 1956, 1977, 1980 and 1985, but in spite of all efforts, the pace and as well as the level of industrial development in india, could not reached according to its need. Dec 09, 2014 the main thrust of the 1948 industrial policy was to lay the foundation of a mixed economy where both the private and public enterprises were to be given importance and work together to develop economy to accelerate the pace of industrial development. What are the advantages and disadvantages of industrial policy in india. This resolution was adopted by the parliament in april 1956. It sought to provide encouragement to these industries in indias industrial development programmes because these industries make use of local resources and provide larger employment opportunities.
The objective of present industrial policy is to globalize the indian economy and provide freer play of market forces in domestic economy. Industrial policy resolution 1948 k6nqdvwv014w idocpub. It was necessary to remove the confusion and give a clear cut direction to the industries to invest and expand. In a short period of operation of the 1948 industrial policy, some significant changes took place in the economic and political spheres that called for changes in industrial policy as well. Industrial policy of india since independence paper tyari. The industrial policy specifies the relevant roles of the public, private, joint and cooperative sectors. Therefore, industrial policy of 1948 was drafted on 6th april by the government of india. The growth of the public sector assume importance in the indian economy. According to this resolution the objective of the social and economic policy in india was the establishment of a socialistic pattern of society. Large scale industries were divided into four categories. The industrial activities were divided into four broad areas.
Industrial policy in india industrial policies 1948 to 1991. I 1 the government of india set out in their resolution dated 6 april. The industrial policy 1948 was presented in the par. Resolution emphasised the importance to the economy of. Indian industrial policy in the period 1950 to 1980, as embodied in its fiveyear plans, has long been the subject of intense criticism from the powerful neoliberal critics of the countrys development. The ipr, 1948 also emphasized the importance of smallscale and cottage industries in india. Handbook of industrial policy and statistics office of economic. The first important resolution was issued by government of india.
Oct 16, 2015 after having attained independence, the government of india declared its first industrial policy on 6th april, 1948. It was the first comprehensive statement on industrial development of india. It contributed to employment opportunities, capital formation, development of infrastructure, and increase in exports over the years, and many other areas. The industrial policy resolution of 1956 also gave importance to the public sector industries. Building on the socalled bombay plan1 in the preindependence era, the first industrial policy resolution announced in 1948 laid down broad. Nondiscriminatory and fair treatment for the private sector. It divided the industrial sector into four broad groups. Industrial policy department for promotion of industry. Government policies for development and promotion of small. Industrial policy in the united states article pdf available in journal of industry competition and trade 73.
Of india industrial policy resolution 1948 6 april, 1948 the resolution emphasized at the following. The industrial policy 1948 was a sincere depart from the british era policy of lessez faire free economy model followed by british rulers. Industrial policy is seen as harmful as governments lack the required information, capabilities and incentives to successfully determine whether the benefits of promoting certain sectors above others exceeds the costs and in turn implement the policies. Journey of indias industrial policy from 1948 1991. Industrial policy resolution of 1956 ipr 1956 is a resolution adopted by the indian parliament in april 1956. Jul 16, 2016 after gaining independence on august 15, 1947 it was necessary to give new policy for industrial development, decide priority areas and clear doubts in the minds of private entrepreneurs regarding nationalisation of existing industries. Gk, general studies, optional notes for upsc, ias, banking, civil services. The industrial policy 1948 emphasised the role of cottage and small scale industries in economic development. It is marked as the first comprehensive documented statement on industrial development of india. It emphasises the national significances and the financial development strategy. Resolution dated 6 april, 1948 the policy which they proposed to pursue in the industrial field. In a mixed economy of our sort, the government should declare its industrial policy clearly indicating what should be the sphere of the state and of the private enterprise. The british policy was that government was illqualified to advance the industrial development and all such matters should be left to private enterprise.
After gaining independence on august 15, 1947 it was necessary to give new policy for industrial development, decide priority areas and clear doubts in the minds of private entrepreneurs regarding nationalisation of existing industries. Pdf indias industrial policy and performance since. Specific priorities for industrial development were also laid down in the successive five year plans. It was well understood that smallscale industries are mainly suited for the utilization of local resources. The main thrust of the 1948 industrial policy was to lay the. State must play of progressively active role in the development of industries. Industrial policy of 1991 industrial development in. Industrial policy resolutions and industrial policy statements. The quest for industrial development started soon after independence in 1947.
A mixed economy means coexistence of the two sectors public and private. Objective of idr 1951 empowering the government to take necessary steps to regulate the pattern of industrial development through licensing. Industrial policy resolution 1948 in reference to industrial policy resolution govt. The first industrial policy resolution, announced in 1948, outlined the. Industrial policy resolution of 1956 wikipedia republished. What are the features of new industrial policy of 1991.
There was no mention of the role of foreign private investment in the resolution, which meant that multinational corporations continued to thrive on free government. Industrial policy resolution, 1948 after gaining independence, it was necessary to have new policy for industry of the country, to decide priority areas and clear doubts in the minds of private entrepreneurs regarding nationalization of existing industries. The resolution emphasised the importance to the economy of securing a continuous increase in production and its equitable distribution, and pointed out that the state must play of progressively active. The policy resolution laid stress on the role of the state in the development of industry.
Main features of industrial policy resolution of 1956. This the government of india did by a policy resolution on 30 april 1948 called the first industrial policy resolution of 1948, which made it clear that india was going to have a mixed economy. This paved the way for the industrial policy resolution of 1956, which was the first comprehensive statement on the strategy for industrial development in india. The industrial policy resolution of 1948 marked the beginning of the evolution ol the indian industrial policy. The resolution accepted the importance of both private and public sectors for the development of the industrial sector. Building on the socalled bombay plan1 in the preindependence era, the first industrial policy resolution announced in 1948. The government of india announced its industrial policy resolution ipr on april 6, 1948 whereby both public and private sectors were involved towards industrial development. The indian development and regulation act 195111 was the genesis of a system of industrial. Small scale and cottage industries were given the importance. Ppt industrial policy of india industrial policy employment. Industrial policy resolution ipr, 1948 it was p resented in the parliament by then industry minister shyama prasad mukherjee. C, and the second, new thinking on industrial policy. A privatisation b regulation of industries c import substation d promotion of local production 2.
Group 1 basic and strategic industries like arms and ammunition, atomic energy, railways, etc. Industrial policy 1991 is also known as open industrial policy, because it contains several revolutionary schemes and plans. On april 30, 1956, the government revisited the ipr, 1948 and announced the industrial policy resolution, 1956 ipr, 1956. This fact has been confirmed in all the fiveyear plans of india. Hence a conference of industrialists was held in february 1948 and based upon the deliberations in the conference the 1 st industrial policy resolution was adopted by the parliament on 6 th april 1948. The first, new thinking on industrial policy, was hosted by the world bank in washington, d. Industrial policy resolution 1948 6 april, 1948 the government of india announced its first industrial policy resolution. Industrial policy resolution 1948 6 april, 1948 the government of india announced its first industrial policy resolution on 6 april, 1948. The second industrial policy resolution was adopted in april 1956, replacing the resolution of 1948.
Summary of indias industrial policy economics discussion. The industrial policy resolution of 1948 defined the broad contours of the policy delineating the role of the state in industrial development both as an entrepreneur and authority. The sole element of this resolution was that it introduced india. The resolution laid down three categories, which bore a close resemblance to the earlier classification, but were more sharply defined and broader in coverage as to the role of the state. What are the advantages and disadvantages of an industrial. This volume is the result of the 2012 international economic associations series of roundtables on the theme of industrial policy. Under the industrial licensing policies, private sector firms have to secure licenses to start an industry. If, we make an analytical study of the special features of industrial policy 1991, it becomes clear that several fundamental changes have been, made, in this policy. Jan 31, 2012 industrial policy resolution 1948 6 april, 1948 the resolution emphasized at the following state must play of progressively active role in the development of industries. Industrial policy of 1948 also recognized the need for securing the participation of foreign capital and enterprises, particularly related to industrial technique and knowledge. The government policy towards the small scale industries was highlighted by the industrial policy of 1948 stressing the importance of the sector in the indian economy. Industrial delicensing policy or the end of red tapism. The country hand launched a programme of planned economic development with the first fiveyear plan.
It laid down three categories of industries which were more sharply defined. In 1956, capital was scarce and the base of entrepreneurship not strong enough. On april 30, 1948, the government of india passed a policy resolution the industrial policy resolution, 1948 ipr, 1948. Indian industrial policy since 1956 narendra jadhav.
Industrial policy resolution of april, 1948 classified industries into four categories, which are as follows. What is the prime focus of the industrial policy resolution of 1948. This policy divided the industries into four categories. The new industrial policy of july 1991 witnessed the border outline for industrial development at present. Which of the following is referred as the magna carta of industries in india. Preface maor economic changes in 1948 is the third of a series of reports dealing with world economic conditions, prepared by the department of economic affairs of the united nations. The various industrial policy introduced by the indian government are as follows. It provided more powers to the governmental machinery. India adopted several industrial policy resolution to develop the industrial sector. The main criticism against industrial policy arises from the concept of government failure. New industrial policy india pdf download for ias exam, industrial policy 1991 and earlier industrial policy notes for ias,upsc examination pdf download.
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