Industrial Policy of 1948

The Industrial Policy of 1948 was an important policy statement made by the Government of India shortly after independence. This policy laid the foundation for the industrial development of the country and aimed to promote economic growth, reduce poverty, and achieve self-reliance.

Statement i: The Industrial Policy of 1948 was the first industrial policy statement by the Government

This statement is correct. The Industrial Policy of 1948 was indeed the first comprehensive policy statement on industrial development made by the Government of India. It was a significant step towards shaping the industrial framework of the country.

Statement ii: It gave a leading role to the private sector

This statement is incorrect. The Industrial Policy of 1948 did not explicitly give a leading role to the private sector. Instead, it emphasized a mixed economy approach, where both the public and private sectors were expected to play a significant role in industrial development.

The policy recognized the importance of private enterprise and aimed to encourage private investment in the industrial sector. It emphasized the need to create a conducive environment for private entrepreneurs to thrive and contribute to the overall industrial growth of the nation.

However, the policy also recognized the role of the state in promoting industrial development. It acknowledged that certain industries, especially those of strategic importance or requiring large investments, would be taken up by the state. The state was expected to provide infrastructure, capital, and technical support to private enterprises, particularly in areas where private investment was lacking.

The Industrial Policy of 1948 also focused on the need for balanced regional development and the promotion of cottage and small-scale industries. It aimed to decentralize industrial growth and ensure equitable distribution of economic opportunities across different regions and sections of society.

In conclusion, while the Industrial Policy of 1948 did not explicitly give a leading role to the private sector, it recognized the importance of private enterprise and aimed to create a conducive environment for its growth. The policy emphasized a mixed economy approach, where both the public and private sectors were expected to contribute to the industrial development of the country.