Even after the triumph of India achieving Independence, economic conditions prevailing were really poor. No virtual industries or capital were present to invest in. The agricultural or local unit output was insufficient. Politically India had improved but it was still internally socially divided. Hence, efforts were being made from the government to bring up industrial development consequently came up the Industrial Policy of India.
”Industrial policy is a document that sets the tone in implementing, promoting the regulatory roles of the government.”
- Industrial Policy of 1948- The first Industrial Policy created after independence. It put industries under centre and state government.
- Industrial Policy of 1956- Replaced the policy of 1948. The features of this policy were:
- A new classification of Industries.
- Schedule A- gave power to center ie. industries control under the central government
- Schedule B- mix of Central, State
- Labour welfare.
- Industrial Policy of 1969- MRTP (Monopolistic and Restrictive Trade Practices ) was introduced upon review of previous two policies. It regulated unfair means and examined for predominant power concentration.
- Industrial Policy of 1973- The country opened up to international trade, and hence was a vital development for countries industries. FERA was introduced, and Center/state and private owners joined hands. FERA helped ease trade deficits.
- Industrial Policy of 1977- This policy was influenced by the socialistic views. It encouraged village industries and decentralized industrialization.
- Industrial Policy of 1980 – Government changed and congress came into power. no new policies were introduced
- Industrial Policy of 1985-86 – Liberalization and Privatization
- Industrial Policy of 1991- The Latest Policy introduced and followed up to date.
- focused on industrial licensing
- abolition of MRTP
- Foreign investments
This policy is followed to-date
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