PPT: Industry & Infrastructure | Indian Economy for UPSC CSE PDF Download

 Page 1


Lecture 13 
Industry & Infrastructure
Capstone IAS Learning
Page 2


Lecture 13 
Industry & Infrastructure
Capstone IAS Learning
What will we cover
Industrial Policy Resolution 1956 & 1991. 
National Manufacturing Policy 
National Capital Goods Policy  
Special Economic Zones 
Make in India & Ease of Doing Business 
MSME Sector 
Certain Important Concepts 
Economic Survey 2019-20
Page 3


Lecture 13 
Industry & Infrastructure
Capstone IAS Learning
What will we cover
Industrial Policy Resolution 1956 & 1991. 
National Manufacturing Policy 
National Capital Goods Policy  
Special Economic Zones 
Make in India & Ease of Doing Business 
MSME Sector 
Certain Important Concepts 
Economic Survey 2019-20
Introduction
Industry plays a decisive role in determining the overall growth of an economy. 
For any economy to be globally, successful, it needs to have a robust industrial 
sector. 
Why is Industrial sector important? 
-
It generates employment 
-
Promotes R&D 
-
Leads to modernisation  
-
Makes the economy self-sufficient 
-
It has strong linkages with agriculture and services sector 
-
Aids in development of trade. 
But after Independence our industry was in shambles. There was low output, low 
productivity and was technologically backward. 
Therefore, India required a strong Industrial policy to Make it an industrial 
powerhouse.
Page 4


Lecture 13 
Industry & Infrastructure
Capstone IAS Learning
What will we cover
Industrial Policy Resolution 1956 & 1991. 
National Manufacturing Policy 
National Capital Goods Policy  
Special Economic Zones 
Make in India & Ease of Doing Business 
MSME Sector 
Certain Important Concepts 
Economic Survey 2019-20
Introduction
Industry plays a decisive role in determining the overall growth of an economy. 
For any economy to be globally, successful, it needs to have a robust industrial 
sector. 
Why is Industrial sector important? 
-
It generates employment 
-
Promotes R&D 
-
Leads to modernisation  
-
Makes the economy self-sufficient 
-
It has strong linkages with agriculture and services sector 
-
Aids in development of trade. 
But after Independence our industry was in shambles. There was low output, low 
productivity and was technologically backward. 
Therefore, India required a strong Industrial policy to Make it an industrial 
powerhouse.
IPR 1956
Industrial Policy Resolution 1956 gave commanding 
heights of the economy to the government. 
Why ? 
-
Lack of capital with private industrialists 
-
Poor demand conditions made investments risky for 
industrialists who had capital. 
So, in December 1954, Parliament adopted the “socialistic 
pattern of society” as the goal of economic policy. 
To give effect to this IPR 1956 was adopted which 
enhanced the role of the government to prevent 
concentration of power in private hands.
Page 5


Lecture 13 
Industry & Infrastructure
Capstone IAS Learning
What will we cover
Industrial Policy Resolution 1956 & 1991. 
National Manufacturing Policy 
National Capital Goods Policy  
Special Economic Zones 
Make in India & Ease of Doing Business 
MSME Sector 
Certain Important Concepts 
Economic Survey 2019-20
Introduction
Industry plays a decisive role in determining the overall growth of an economy. 
For any economy to be globally, successful, it needs to have a robust industrial 
sector. 
Why is Industrial sector important? 
-
It generates employment 
-
Promotes R&D 
-
Leads to modernisation  
-
Makes the economy self-sufficient 
-
It has strong linkages with agriculture and services sector 
-
Aids in development of trade. 
But after Independence our industry was in shambles. There was low output, low 
productivity and was technologically backward. 
Therefore, India required a strong Industrial policy to Make it an industrial 
powerhouse.
IPR 1956
Industrial Policy Resolution 1956 gave commanding 
heights of the economy to the government. 
Why ? 
-
Lack of capital with private industrialists 
-
Poor demand conditions made investments risky for 
industrialists who had capital. 
So, in December 1954, Parliament adopted the “socialistic 
pattern of society” as the goal of economic policy. 
To give effect to this IPR 1956 was adopted which 
enhanced the role of the government to prevent 
concentration of power in private hands.
Features : 
Various industries were divided into following 3 categories: 
1. Schedule A - Exclusive responsibility of the state 
2. Schedule B - Those which were to be progressively state owned. 
Role of private sector only to supplement government efforts. 
3. Schedule C - The remaining were to be left with private sector. 
Even within Schedule C, there was strict control through a 
system of licenses. 
Large number of incentives were given to boost Village & Small 
Scale Industries. 
Labour and Foreign Capital were under strict control 
IPR 1956 was famously called the “Economic Constitution of 
India”.