Industrial policy of 1956

The biggest disappointment has been in the power sector, mainly because both the reform of the incumbent public sector and the setting up of an effective regulatory framework were slow to develop.

Setting up a special monitoring agency to oversee the genuine credit needs of the small scale sector. Schedule A consisting of 17 industries would be the exclusive responsibility of the State.

Licenses to increase the production were issued only if the government was convinced that the economy required more of the goods. Greater competitive pressure will also induce our industry to invest much more in research and development and they have been doing in the past. Public units can be a good source of revenue if efficiently managed.

Import licensing was abolished relatively early for capital goods and intermediates, which became freely importable incoinciding with the switch to a flexible exchange rate regime.

The classification of industries into three categories did not mean that they were being placed in water-tight compartments.

Industrial Policy Resolution of 1956

The policy stated that facilities for development will be made available to industrially backward areas. Workers will be given fair remuneration, better working conditions and opportunities to participate in management.

But policy was helped by the fact that the pricing of telecom services unlike that of power was not uneconomic; by there were a handful of strong private sector telecom service suppliers competing effectively with the public sector companies.

Management courses will be started in universities for these persons. Schedule B, consisting of 12 industries, would be open to both the private and public sectors; however, such industries would be progressively State-owned.

Policies toward foreign investment were quite restrictive, reflecting the general protectionist thrust of India's industrial policy. Some states have taken the initiative to ease these interactions and have put in place a process of supportive deregulation to attract private investment.

Many concessions were offered to make use of foreign capital. Industries reserved for the small scale sector will continue to be so reserved. The list of industries reserved for the small-scale sector was expanded. Government will fully protect the interests of labour, enhance their welfare and equip them in all respects to deal with the inevitability of technological change.

Business Environment Indian Industrial Policies At the time of Independence, Indian economy was facing severe problems of illiteracy, poverty, low per capita income, industrial backwardness and unemployment.

The National Democratic Alliance NDA government did undertake a few privatizations involving the sale of public sector enterprises with the transfer of management control during the period —, the most important being the privatization of Bharat Aluminum Company to a "strategic" private investor.

Under Schedule B, 12 industries were included. In locations other than cities of more than 1 million population, there will be no requirement of obtaining industrial approvals from the Central Government except for industries subject to compulsory licensing.

There are a large number of chronically sick public enterprises incurring heavy losses, operating in a competitive market and serve little or no public purpose.

Consequential amendments to the Foreign Exchange Regulation Act shall be carried out. Raw hides and skins, leather, chamois leather and patent leather.Industrial Policy Statement of On 30 Aprilthe Government revised its first Industrial Policy (i.e., the policy of ), and announced the Industrial Policy of The reasons for the revision were: (i) introduc­tion of the Constitution of India, (ii) adoption of a planned economy, and (iii) declaration by the Parliament that India was going to have a socialist pattern of society.

A comprehensive industrial policy was formulated in It has following objectives: (i) Development of machine-building industries. (ii) Increase in rate of industrial development. Industrial Policy Resolution of (IPR ) is a resolution adopted by the Indian Parliament in April It was the first comprehensive statement on industrial development of India.

[1] The policy continued to constitute the basic economic policy for a long time. Policy laid emphasis on the proper management of public units. Public units can be a good source of revenue if efficiently managed. (viii) Foreign capital: Policy laid stress that foreign capital can play important role in industrial development.


Many concessions were offered to make use of foreign capital. An industrial policy of a country, sometimes denoted IP, is its official strategic effort to encourage the development and growth of part or all of the manufacturing sector as. Jan 10,  · Industrial Policy Resolution of Lecture By: Ms.

Madhu Bhatia, Tutorials Point India Private Limited.

Industrial policy of 1956
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