Industrial POLicy 1991

brief presentation about industrial policy

1. INDUSTRIAL POLICY By : Group 6

2. Industrial Policy It covers rules, regulations, principles, policies, & procedures laid down by government for regulating & controlling industrial undertakings in the country. It prescribes the respective roles of the public, private, joint, cooperative large, medium & small scale sectors for the development of industries

3. Industrial Policy contd… It incorporates fiscal & monetary policies, tariff policy, labor policy. It shows the government attitude not only towards external assistance but also toward public & private sectors.

4. Main Objectives To maintain a sustained growth in productivity To enhance gainful employment To prevent undue concentration of economic power To achieve optimal utilization of human resources To attain international competitiveness and To transform India into a major partner and player in the global arena

5. Industrial Policy 1991 Policy focus is on – Deregulating Indian industry; Allowing the industry freedom and flexibility in responding to market forces and Providing a policy regime that facilitates and fosters growth of Indian industry.

6. Industrial Policy 1991 In pursuit of the industrial objectives, Government decided to take a series of initiatives in respect of the policies relating to the following areas: Industrial Licensing Foreign Investment Foreign Technology Agreements Public Sector Policy MRTP Act

7. Advantages Of Industrial Policy Technological advancement Higher standard of living Increasing the purchasing power Exports increase “Made in India” become a brand name Education sector Free flow of capital Low prices with high quality Spread out the manufacturing facilities

8. Disadvantages of Industrial Policy National sovereignty at stake. Leads to commercial and Political Colonialism. Transfers of natural resources. Widening gap between rich and poor. Decline in demand for domestic products.

9. Impact in Indian Economy Changes in technology. Product diversity. Market concentration. Geographical dispersion. Destabilization of protected environment. Export-a matter of survival.

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