Industrialize or Perish

industrialise or Perish Industries refer to units that be engaged in the communication channel activity of converting raw materials or semi-finished fairs into finished or final goods, which argon then made available to the final consumers. For any parsimoniousness to brandish industrialization is very essential. Industries act as major accelerators of economic organic evolution in a countrified. There argon many advantages of having a good industrial system give waying in a surface area. Especially in a developing country like India, Industries are of ut closely wideness.They leave the vast population with die employment opportunities, better standard of living, better supply of goods and services and so on. However, in a vast country like India it is important that the functioning of these industries be monitored. Here comes the need for a steadfast and in effect(p) industrial constitution. In give to see to that the industries function in the desired manner it i s essential that these industries be kept under observation and too the government works on the functioning of these industries. industrial Policy is an important document which lays a wide canvas and sets the spectre for implementing promotional and regulatory roles of the government. K. Aswathappa Thus, it is clear from the above definition that an industrial Policy lays down a definite framework that governs and monitors the functioning of the industries in a country. It is essential to understand the splendor or reasons behind having a strong and efficient Industrial Policy in any country a. equilibrize Development of industries b. Meet National Priorities c. Regulate Expansion of Private Industries d. interrupt Concentration of Wealth in Few Hands e.Monitor Foreign ex agitate Three Major Industrial Policies in India There have been triad major industrial policies in the Indian Industrial context. The first was Industrial Policy Resolution of 1948. This resolution soon after the independence focus on accepting the role of both unavowed and public orbit units in the country, role of small and cottage industries and also remarked that the small and cottage industries are major employing industrial units. This resolution also divided the industries into quaternity categories Industries where state had monopolies, mixed sector, the field of government control and the field of buck private enterprise.This resolution did not give much importance for the welcoming of extraneous capital. Second important industrial policy was Industrial Policy of 1956. This policy focused on accelerating the rate of economic growth and speeding of industrialization, importance of public sectors, prevent monopolies and lessen income disparities. This policy was highly criticized for giving importance for the tuition of public sector units rather than the private enterprises. Third and the most important is the Industrial Policy of 1991. This family is also called as the year of economic reforms in India.This marked the major shift of the Indian economic system from closed to open economy. Liberalization, Privatization and Globalization was introduced in the economy in baseball club to boost competition in the economy. This policy focused on the sideline spheres Abolishing Industrial Licensing, Encouraging Foreign investment and foreign trade agreements, reducing the importance of public sector units and liberalizing the restrictions on the working of industries. Recent Developments in Industrial Policy Change is inevitable and nothing can effluence change. So are the industrial sector and the industrial policy.Over the days the industrial policy has gone through many changes and developments. Some of the recent developments in Industrial sector Policy are as follows a. Liberalization The Industrial Policy of earlier years focused to a greater extent on fuddled rules and regulation. The tax policies, trade regulations etc.were strict and prevented the development of industries. This policy was used in order to protect some industries. However, now after the reforms in 1991 the scenario has on the whole changed. The economy is now to a greater extent liberal in terms of tariff and foreign trade rules.This has increased the investment in certain sectors and has also increased the overall national income. Liberalization has also enabled the economy to be self sufficient. This will reduce the dependence of the domestic economy on foreign economy. b. Globalization Today the Indian market is merged with the ball-shaped market. This has increased the competition for domestic industries leading to better quality goods, efficient working of the organization and also reduced prices. Globalization has added on more jobs for the citizens within the country.Now global markets have made it possible for the consumers to choose from a wide variety of products. It also increases the foreign trade of the country. c. Reduced ag ency of Public celestial sphere The role of public sector over the years has reduced. Due to this there is a reduction in hindrances such as Bureaucracy and Red-Tapism. Thus, the reduced role of public sector has certainly helped the economy to grow and develop efficiently and effectively. This has also reduced the burden on the government budgets. Also, many sick units have now been converted into private enterprises.Thus, this has also increased the revenue of the country. d. De-licensing There was a license raj before the introduction of the 1991 reforms. Now the economy is relived of this. The government in order to encourage investment has abolished the compulsory licensing for all industries except a few that are strategic and defense related and which seek governmental supervision. De-licensing is the major change that has improved the total investment in the economy. Larger investment way better services and better supply of goods. Also, de-licensing has increased the sco pe for more and more industrial units to be set up. . Foreign Technological Agreements In recent times there has been a great importance give for foreign technological agreements. Due to import of foreign technology into the country the efficiency of the domestic industries have improved. Also, this has helped the domestic companies flourish not scarcely within the geographical boundaries of a country but also globally. f. Consumer is fairy Due to the increase in competition for domestic industries the consumers have been benefited a lot. The consumers have a vast range of products to choose from and also globalisation has put a stop for the expansion of Monopolies. . Autonomy to Private Sector Over the years there has been many measures adopted in order to give more autonomy for private enterprises. Some of the measures are disinvestment, privatization, etc. h. Importance of Small Scale Industries The importance of the small and cottage industries are highlighted in all the ind ustrial policy resolutions. The small scale industries are encouraged for the numerous benefits they provide the economy with such as, employment, increase in the national income, increase in exports, etc. i.Importance of Information Technology In recent years the importance of IT sector has increased tremendously. This has led to easy of Business Process Outsourcing (BPOs) and Knowledge Process Outsourcing (KPOs). Thus, these were some of the recent development or trends in the Industrial Policy of India. Reference 1. Essentials of Business surroundings K. Aswathappa 2. en. wikipedia. org 3. Study on Industrial Policy and Services European accusation 4. What is the importance of industries to our country? Saptarshi Dutta (PreserveArticles. com)