Industrial policy resolution-1948 : Industrial policy resolution-1948 In reference to industrial policy resolution govt. recognized the need for a mixed economy and reserved national monopolies only for atomic energy, and rail and road industries.
While many industries held by private firm could continue, the govt. had exclusive rights to initiate projects in six other industries- coal, iron & steel, aircraft manufacturing, ship building, telephone and telegraph and minerals. Moreover govt. could regulate licenses in other 18 industries of national importance.
The main thrust of the (1948) industrial policy was to lay the foundation of both private and public enterprises to accelerate the process of industrial development. Industrial policy resolution -1956 : Industrial policy resolution -1956 After1948 industrial policy resolution, significant development
Took place in India, economic planning proceeded in an
organized basis and the first five-year plan was completed. Also
parliament accepted the socialist pattern of the society as the
basic aim of social and economic policy. The second industrial
policy resolution was adopted in April 1956, replacing the
resolution of 1948.
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. The
Categories were: Industrial policy resolution -1956 : Industrial policy resolution -1956 Schedule-A
Those which were to be exclusive responsibility of the state.
The industries which were to be progressively state-owned and
in which new enterprises were generally set up by the state while
the private enterprises were expected only to supplement the
effort to the state.
All the remaining industries and their future development would
be left to the initiative and enterprise of private sector. Industrial policy resolution -1956 : Industrial policy resolution -1956 Other features of the resolution were:
Fair and non-discriminate treatment of private sector.
Encouragement to village and small-scale enterprises.
Removing regional disparities.
In a nut shell, the industrial policy of 1956, for the first time,
emphasized on the role of small-scale industries in the
development of the national economy. The statement pointed
out the importance of the SSI Sector in providing
employment. It also emphasized on the equitable distribution
of national income and the effective mobilization of resources. Industrial policy resolution -1977 : Industrial policy resolution -1977 In December 1977, the central govt. announced a new
industrial policy by way of statement in the parliament.
Despite some desirable elements. Resulted in certain
distortion viz. unemployment increased, rural-urban
disparity widened and real investment stagnated. On an
average growth of industrial sector was not more than 3%
to 4%. The incidence of industrial sickness also became
The thrust of the industrial policy statement of December
1977 was on effective promotion of cottage and small
industries widely dispersed in rural and area an small towns. Industrial policy resolution -1977 : Industrial policy resolution -1977 The concept of district industries centers was introduced for the
first time. Each district would have such district centers which
would extend all support and services required by the small
entrepreneurs. These included economic investigation of the
Districts, supply of machinery and equipment, raw materials and
other resources, arrangement of credit facilities, call for quality
control, research and extension and so on.
The policy statement considerably expanded the list of reserved
items for exclusive manufacture in the small-scale sector. This
concept recommended by Karve committee, was introduced in
1967 with 47 products. The list of such reserved item was 504 till
1977. The 1977 policy expanded this to 807 .