Industrial Policy and Economic Development in India 1947-2012
Contents: 1. Indian industry in the pre-Independence period. 2. Post Independence industrial policy: a general review. 3. Industrial policy in India\'s Five Year Plans (I to XII plan). 4. Legal and institutional framework for industrialization. 5. Public sector enterprises. 6. Micro, small and medium enterprises (MSMEs): general profiling. 7. Micro, small and medium enterprises MSMEs: sectoral profiling. 8. Industrial finance and development finance institutions (DFIs). 9. Foreign direct investment FDI for industrial development. 10. Infrastructure for industrial development. 11. Tax incentives for industrialization. 12. Industrial sickness and labour. 13. Industrial relations and labour laws. 14. Industrial development and environment. 15. Indian industry and World Trade Organization WTO. Appendices. Bibliography. Index.
India\'s development pattern during 1950-80 was characterized by strong centralized planning, Government ownership of basic and key industries, excessive regulation and control of private enterprise, trade protectionism through tariff and non-tariff barriers -- and a cautious and selective approach towards foreign capital. It was a quota, permit and license regime guided and controlled by a bureaucracy trained in colonial style. This so-called inward-looking, import substitution strategy of economic development began to be widely questioned with the beginning of 1980s. Policy makers started realising the drawbacks of this strategy which inhibited competitiveness and efficiency and produced a much lower rate of growth than expected.
Tilt towards economic liberalisation started in 1985 when Government announced a series of measures aimed at deregulation and liberalisation of industry. These measures, described as New Economic Policy, were followed by drastic changes introduced by the 1991 Industrial Policy Statement of the Government.
As a result of economic reforms of the last 20 years, India is presently one of worlds fastest growing economies. In the last few years, it has emerged as a global economic power, the leading outsourcing destination and a favourite of international investors. Indian industry has upgraded technology and product quality to a significant degree and met the challenge of openness after being protected for so long.
The Approach Paper to the Twelfth Five Year Plan (2012-13 to 2016-17) released by the Planning Commission, Government of India in October 2011 expressed concern at the slow growth of the manufacturing sector and emphasized "the need to sharply change the growth trajectory of India\'s manufacturing sector" by adopting a holistic appraisal of what needs to be done to improve its competitiveness.
This book contains 15 chapters which trace developments in different aspects of industrialization during the post-Independence period, explain the key reform measures undertaken for making Indian industry internationally competitive and examine current issues pertaining to this vital sector of the Indian economy. (jacket)
