Industrialize or Perish

industrialize or Perish Industries refer to units that atomic number 18 tenanted in the business activity of converting raw materials or semi-finished goods into finished or final goods, which are then made available to the final consumers. For all delivery to ostentation industrialization is very essential. Industries act as major accelerators of economic development in a country. there are m several(prenominal)(prenominal) advantages of having a good industrial system surgical operation in a country. Especially in a developing country like India, Industries are of utmost richness.They provide the vast population with check employment opportunities, give 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. hither comes the need for a strong and efficient industrial Policy. In secernate to see to that the industries function in the desired manner it is 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 large canvas and sets the tone 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 importance or reasons tush having a strong and efficient Industrial Policy in any country a. Balanced Development of industries b. Meet National Priorities c. Regulate blowup of Private Industries d. Prevent Concentration of Wealth in Few work force e.Monitor contrary Trade Three Major Industrial Policies in India There have been three major industrial policies in the Indian Industrial context. The first was Industrial Policy Resolution of 1948. This resolution soon afterwar ds the independence cerebrate on accepting the role of both underground and public empyrean units in the country, role of down(p) and cottage industries and besides remarked that the atomic and cottage industries are major employing industrial units. This resolution excessively divided the industries into four categories Industries where state had monopolies, mixed sector, the field of government attend and the field of private enterprise.This resolution did not give much importance for the welcoming of overseas capital. Second important industrial policy was Industrial Policy of 1956. This policy focused on accelerating the rate of economic process and speeding of industrialization, importance of public sectors, prevent monopolies and reducing income disparities. This policy was passing criticized for giving importance for the development of public sector units rather than the private enterprises. Third and the most important is the Industrial Policy of 1991. This y ear is also called as the year of economic reforms in India.This marked the major mistake of the Indian Economy from closed to open economy. Liberalization, Privatization and globalisation was introduced in the economy in order to encourage competition in the economy. This policy focused on the following spheres Abolishing Industrial Licensing, Encouraging Foreign investment and orthogonal sell agreements, reducing the importance of public sector units and liberalizing the restrictions on the functional of industries. Recent Developments in Industrial Policy Change is inevitable and nix can escape change. So are the industrial sector and the industrial policy.Over the years the industrial policy has gone through many changes and developments. around of the recent developments in Industrial sector Policy are as follows a. Liberalization The Industrial Policy of earlier years focused much on stringent rules and regulation. The tariff policies, trade regulations etc were strict and prevented the development of industries. This policy was used in order to protect some industries. However, straight off after the reforms in 1991 the scenario has completely changed. The economy is now more liberal in terms of tariff and foreign trade rules.This has change magnitude the investment in certain sectors and has also increase the overall national income. Liberalization has also enabled the economy to be self sufficient. This will reduce the dependence of the internal help economy on foreign economy. b. Globalization Today the Indian securities industry is merged with the global market. This has increased the competition for domestic industries leading to better quality goods, efficient working of the organization and also decreased prices. Globalization has added on more jobs for the citizens within the country.Now global markets have made it achievable for the consumers to acquire from a wide variety of products. It also increases the foreign trade of the country. c. Reduced Role of Public Sector The role of public sector over the years has reduced. Due to this there is a reduction in hindrances such(prenominal) 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. big investment means better services and better supply of goods. Also, de-licensing ha s increased the scope for more and more industrial units to be set up. . Foreign Technological Agreements In recent times there has been a spectacular importance given 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 only within the geographical boundaries of a country simply also globally. f. Consumer is King 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 globalization has put a stop for the expansion of Monopolies. . shore leave to Private Sector Over the years there has been many measures choose in order to give more autonomy for private enterprises. nigh 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 industrial 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 schooling Technology In recent years the importance of IT sector has increased tremendously. This has led to flourishing 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. advert 1. Essentials of Business Environment K. Aswathappa 2. en. wikipedia. org 3. Study on Industrial Policy and operate European Commission 4. What is the importance of industries to our country? Saptarshi Dutta (PreserveArticles. com)