Trends in industrial development Chapter 5 Trends in industrial development

meaning of industrialisation Strong industrial base Diversification of industrial base More importance to industrial sector Industrial development during planning---- india’s rank – 10th most industrialised nation

Industrial development during first plan---- 1951 – 56 Many industris were set up; although it was an agricultural plan Some items reserved for small sector Growth rate-7.5%

Second plan 1956-61 P.c mahalanobis model Steel plants Fertilizers plants 25% 0f total plan outlay was spaent on industries Growth rate-6.6%

Third plan 1961-66 Focus on completion of projects started in 2nd plan Hmt and other industries set up Growth rate – 9%

plan holiday 1966-69 Political reasons Indo china war;; indo pak war Above all- economic reasons– failure of third plan due to bad agriculture production Growth rate – 1.6%

Fourth plan 1969-74 plan target was self -reliance It failed to achieve its targets 19.7% of the total outlay spent on industries Growth rate- 4.5% Increase in industrial estates to 465.

5th plan 1974-78 self sufficiency and growth & social development Objective– dev of core sector; dev of export sector ; supply of mass consumption goods encouragement to village and small industries 24.3% of total outlay spent on industries growth rate was- 5.9% ;

Sixth plan 1980-85 objectives –optimum use of existing capacity of industrial sector; to increase productivity both in public and private sector to produce mass consumption goods and capital goods; intermediate goods Better technical progress;import of foreign technology 26.5% of total outlay Growth rate – 6.4%

Seventh plan 1985-90 supply of consumer goods; increase in productivity; Threfore high order technology was used;improvement s in labour productivity 23. 7% of total outlay 8.5% growth rate

Plan holiday1990-92 Annual plans were formulated. introduction of economic reforms Liberalisationn ;privatisation; globalisation Growth rate – 4.4%

Eighth plan 1992-97 More importance to industries 18.8% of outlay Growth rate – 6.8% More importance to private sector Foreign companies – more important role More emphasis on moderisation and rennovation

Ninth plan 1997- 2002 8.2% of total expenditure Growth rate -5% Impact of global slowdown Private sector more important Efforts to attract foreign investment speeding up of liberalisation.

Tenth plan 2002-07 4% of the total outlay New challenges-1)removal of quantitative restrictions on imports ,leading to more competition 2) reduction in the role of public sector , leading to expansion of private sector Emphasis on dev of infra structure Special concessions to readymade garment industry

Tenth plan to make industry more competitive, R& D modernisation, technological upgradation were emphasised. Disinvestments in public sector units. special concessions to export oriented units. Special economic zones set up