NIP_Final V.1.0

NIP_Final V.1.0 - CONTENTS 1. INDUSTRIAL DEVELOPMENT AFTER...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
CONTENTS 1. INDUSTRIAL DEVELOPMENT AFTER INDEPENDENCE 2. MAJOR INDUSTRIES IN INDIA 3. INDUSTRIAL POLICY BEFORE AND AFTER 1991 4. IMPACT ON PUBLIC & PRIVATE SECTOR IN INDIA 5. LATEST CHANGES IN THE INDUSTRIAL POLCY
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
INDUSTRIAL DEVELOPMENT AFTER INDEPENDENCE BEFORE THE BRITISH RAJ INDIA WAS INDUSTRIALLY ADVANCED THAN OTHER WESTERN COUNTRIES BRITISHERS PRACTICALY DESTROYED THE INDUSTRIAL BASE AND AFTER BRITISH RAJ INDIA WAS LEFT WITH A WEAK INDUSTRIAL BASE HENCE AN INDUSTRIAL CONFERENCE WAS CALLED TO HARNESS GROWING INDUSTRY DEMAND TRENDS IN INDUSTRIAL PRODUCTION PHASE 1 (1951-65) BUILDING UP OF STRONG INDUSTRIAL BASE Emphasized on, the development of capital goods industries and basic industries. There took place a massive expansion in the public sector. PHASE 2(1965-80) INDUSTRIAL DECELARATION AND STRUCTURAL RETROGRESSION This phase saw a steep decrease in the rate of industrial growth Government’s reasons for this decline were wars in 1965 and 1971; drought conditions in some years; infrastructure constraints and bottlenecks; oil crises in 1973. The economists pointed out that the market for industrial goods in the country is limited to the top 10% of the population due to extreme inequalities in the income and wealth. Hence when the demand from this population saturates there is not further expansion in the demand. Some blamed the wrong industrial policy in place, complex bureaucratic system of licensing, irrational and inefficient system of controls. PHASE 3(1981-91) THE PERIOD FOR INDUSTRIAL RECOVERY Significant acceleration in growth of the manufacturing sector Acceleration in the growth of factor inputs but was, rather, based on better productivity performance.
Background image of page 2
SOME IMPORTANT CAUSES FOR INDUSTRIAL RECOVERY: 1. Liberal fiscal regime: Maintenance of high budgetary deficits year after year. Resort to massive borrowing often at high interest rates. The encouragement of dissaving. 2. Contribution of agricultural growth Increased prosperity of large farmers in certain regions led to increased demand for a certain range of manufactured goods. 3. Growth of service sector Increase in government expenditure in all services in the 1980’s. Consumption pattern of service class changed towards for consumer durable goods. Hence consumer durables were pushed towards the forefront. 4. The Infrastructure Sector Resurgence in infrastructure investment. The investment grew against 4.2% in phase 1 & 2 to 9.7% in phase 3. This was also accompanied with discernible improvement on the efficiency front. SOME MAJOR INDUSTRIES IN INDIA IRON AND STEEL INDUSTRY It’s is now the 8 th largest steel producing country in the world.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
90, 00,000 crore of capital and directly provides employment to over five lakh people. Liberalization initiated in 1982 and it gave an opportunity for the
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/26/2011 for the course IT 98 taught by Professor Kagal during the Spring '09 term at IESE Business School.

Page1 / 13

NIP_Final V.1.0 - CONTENTS 1. INDUSTRIAL DEVELOPMENT AFTER...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online