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.ppt  A INDUSTRIAL POLICY.ppt (Size: 534 KB / Downloads: 67)

The Resolution emphasized at the following;

1. The importance to the economy of securing a continuous increase in production.
2. Its equitable distribution.
3. State must play of progressively active
role in the development of Industries.
4. It laid down that besides arms and ammunition, atomic energy and railway transport, which would be the monopoly of the Central Government, the State would be exclusively responsible for the establishment of new undertakings in six basic industries-except where, in the national interest, the State itself found it necessary to secure the cooperation of private enterprise.
5. The rest of the industrial field was left
open to private enterprise though it was made clear that the State would also progressively participate in this field.


1. Improving living standards and working
conditions for the mass of the people.
2. To reduce disparities in income and wealth.
3. To prevent private monopolies and
concentration of economic power in different fields in the hands of small numbers of individuals.
4. The State will progressively assume a
predominant and direct responsibility for setting up new industrial undertakings and for developing transport facilities.
5. Undertake State trading on an increasing scale.
6. At the same time private sector will have the opportunity to develop and expand.
7. The principle of cooperation should be
applied whenever possible and a steadily increasing proportion of the activities of the private sector developed along cooperative lines.
8. The adoption of the socialist pattern of society as the national objective.
9. The need for planned and rapid development.
10. All industries of basic and strategic importance, or in the nature of public utility services, should be in the public sector.
11. It is always open to the State to undertake any type of industrial production.
12. Categorization of industries;
i) In the first category will be industries the
future development of which will be the exclusive
responsibility of the State.
ii) The second category will consist of industries which will be progressively state-owned and in which the State will, therefore, generally take the initiative in establishing new undertakings, but in which private enterprise will also be expected to supplement the efforts of the State.
iii) The third category will include all the
remaining industries, and their future development will, in general, be left to the initiative and enterprise of the private sector.
13.The Government of India would stress the role of cottage and village and small scale industries in the development of the national economy.
14. Disparities in levels of development between
different regions should be progressively reduced.


1. The Industrial Policy Resolution of 1956 still remained valid, but certain structural distortions had crept in the system.
2. The new policies were hence directed towards removing these distortions.
3. It provided for a closer interaction
between the agricultural and industrial sectors.
4. Accorded the highest priority to the generation and transmission of power.
5. An exhaustive analysis of industrial products was made to identify products which are capable of being produced in the small scale sector.
6. The list of industries exclusively reserved for the small scale sector was expanded from 180 items to more than 500 items.
7. Within the small scale sector, a tiny sector
was also defined with investment in machinery and equipment upto Rs.1 lakh and situated in towns with a population of less than 50,000 according to 1971 census figures, and in villages.
8. Special legislation to protect cottage and household industries was also proposed to be introduced.
9. It was also decided that compulsory export
obligations, merely for ensuring the foreign exchange balance of the project, would no longer be insisted upon while approving new industrial capacity.
10. In the areas of price control of agricultural and
industrial products, the prices would be regulated
to ensure an adequate return to the investor.

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