Objectives of Industry Policy

  • Economic growth of the industry, in such a manner, will lead to the growth and development of the country.
  • Employment generation: to provide more employment opportunities in industry.
  • Utilization of Human Resources: Through employment generation, human resources can be better utilized and, thus, living standards can be improved.
  • Healthy competitiveness: to promote an environment of healthy competitiveness so that even small-scale industries can grow.
  • Foreign Investment: A better environment for industries attracts more foreign investment, expertise, and new technology.

Industrial Policy in India- Objectives, Resolutions and Limitations

Industrial policy is a plan, a framework, or a set of standard rules, guidelines, and regulations that the government forms for how an industry needs to be run. These standards are made such that a conducive environment can be formed for industries, which leads to the growth and development of that industry and the economy of the country.

Read below this comprehensive article to learn about the objectives of the industrial policies of India and the updated industrial policy.

Table of Content

  • Objectives of Industry Policy
  • Industrial policies of India
  • Industrial Policy Resolution (IPR) 1956
  • Industrial Policy Statement, 1977
  • Industrial Policy Statement, 1980
  • New Industrial Policy, 1991

Similar Reads

Objectives of Industry Policy

Economic growth of the industry, in such a manner, will lead to the growth and development of the country. Employment generation: to provide more employment opportunities in industry. Utilization of Human Resources: Through employment generation, human resources can be better utilized and, thus, living standards can be improved. Healthy competitiveness: to promote an environment of healthy competitiveness so that even small-scale industries can grow. Foreign Investment: A better environment for industries attracts more foreign investment, expertise, and new technology....

Industrial policies of India

After the independence of India in 1947, one of the significant steps taken by the Indian government for the growth and development of nations was to promote trade and industry. To do so, Indian leaders felt the need to formulate an industrial policy. As a result, many industrial policies were formed by the Indian government from 1948 onward, which are as follows:...

Industrial Policy Resolution (IPR) 1956

This policy emphasized government control or public ownership and laid the basic framework of industrial policy, also known as the economic constitution of India....

Industrial Policy Statement, 1977

This policy was an extension of the 1956 policy and was introduced in the emergency era, when there was a large concentration of power in the hands of the government....

Industrial Policy Statement, 1980

The Industrial Policy Statement of 1980 was made to provide a long-term direction for the country’s industrial growth. It focused on promoting healthy competition in the domestic market, modernization through technological advancement, and selective liberalization....

New Industrial Policy, 1991

The New Industrial Policy of 1991 is the most significant policy that revolutionized Indian industries and the economy. Its main objective was to make the economy market-oriented and increase efficiency....

Conclusion

It has been three decades since the last landmark reform in Indian industrial policy. Since then, there have been many changes, new kinds of industries, and technological advancements that need different rules and guidelines. Also, with increasing global warming and other environmental hazards, there is a need for a plan for sustainable growth of industry and economy while keeping these concerns in mind. Thus, there is a need for introducing new measures and frameworks in the new and changed conditions....

FAQs on Industrial Policy and the Economic Growth

1. Why did India’s first industrial policy restrict foreign companies?...