Unit 17 Industrial Policy Analysis

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Unit 17: Industrial Policies LEARNING OBJECTIVE:  Understand the concept, meaning, features and objectives of Industrial Policy  Appreciate the Industrial Policy Revolution, 1948 and 1956  Comprehend the changes in Industrial Policies, post 1956 period  Understand the New Industrial Policy, 1991  Comprehend the impact of New Industrial Policy, 1991 on Indian Economy  Appreciate New Small Sector Policy, 1991  Understand the definition of Micro, Small and Medium Enterprises.  Appreciate the recent policies for MSME Sector  Comprehend the Measures initiated by the Government for the development of MSME sector STRUCTURE: 17.1 Introduction 17.2 Objectives 17.3 Meaning and Objectives of Industrial Policies 17.4 Industrial Policy Resolution,…show more content…
It seeks to create a favourable investment climate for the private sector as well as mobilise resources for the investment in public sector. In its way the government seeks to promote rapid industrial development in the country. (ii) Balanced industrial Structure: The industrial policy is designed to correct the prevailing lopsided industrial structure. Thus, for example, before independence, India had some fairly developed consumer goodsindustries. But the capital goods sector was not developed at all and basic and heavy industries were by and large absent. So the industrial policy had to be framed in such a manner that these imbalances in the industrial structure are corrected. Thus by laying emphasis on heavy industries and development of capital goods sector, industrial policy seeks to bring a balance in industrial structure. (iii) Prevention of Concentration of Economic Power: The industrial policy seeks to provide a framework of rules, regulations and reservation of spheres of activity for the public and the private sectors. This is aimed at reducing the monopolistic tendencies and preventing concentration of economic power in the hands of a few big industrial…show more content…
The scenario has completely changed today. The reforms carried out in the banking sector have led to easy availability of loans. Banks are running after customers today requesting them to take loans. Lending rates have fallen. Computerization and installation of ATMs have brought sea change in the services being rendered by banks. Indian banks have started giving “European” look. The day is not far off when Indian banks may be preferred when compared to foreign banks. Growth in Employment Opportunities and Better

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