The industrial policy of the Government of India and the regulatory measures introduced to achieve the policy has been subjected to serve controversy industrial policy had grown more and more restrictive until about mid seventies. having realised the deleterious effect of the restrective regime the 1980's saw a very slow process of liberalization until in 1990's the era of deregulation begin.
Industrial policy since independence
- Industrial policy resolution 1948:- The industrial policy of 1948 envisaged that the state must play progressive role in development of industry and establishment exclusive Monopoly of the central government. in case of:- 1 manufacture of ARM and ammunition 2: production and control of Atomic Energy 3:- ownership and control of railway transport. Almost all the industries were put under government control and private enterprise are allowed only in selected areas
- industrial policy, 1956:- the resolution in 1956 made the industrial policy more socialist oriented and widened the scope of public sector. in order to realise the aim specified in the Preamble to the constitution and to give effects to the directive principle of State Policy, it was decided that the state will take up the responsibility of setting up new industrial undertaking and for developing transport facilities. In nutshell, the Policy was designed to enable the government in due course dominant position in the industrial sector of the economy.
- industrial policy 1980:- the socio-economic objective of the industrial policy statement of 1980 optimum utilisation of the installed capacity, maximizing production and achieving productivity Employment generation correction of regional development of industrially backward area strengthening of Agricultural waste by according are preferential treatment to agro based industries and prompting optimum sachtler in relationship etc. small doses of liberalisation begin to be introduced with a view to accelerate domestic and economic development and export growth.
- the new industrial policy 1991:- on July 24 1991 Government of India announced major change in the industrial policy. the silent feature of the new policy are:-
- Delicensing with certain exception
- liberalization of foreign investment and technological participation
- scrapping of MRTP regulation pertaining to concentration of economic power
- redefining of the role of public sector
