INDUSTRIAL POLICY 1956 INDUSTRIAL POLICY It is a

INDUSTRIAL POLICY 1956

INDUSTRIAL POLICY It is a policy document prepared by the government which states that how industrial environment of the country will take shape in the future.

FEATURES o Categories of industries: (a) Public sector: 17 industries were included and these were ammunition, atomic energy, iron and steel, heavy machinery, mineral oil, etc. (b) Public-cum-private sector: 12 industries were included. Industries will be state owned but private sector can also establish industry. These are aluminum, machine tools, drugs, chemical fertilizers, road and sea transport. (c) Private sector: All remaining industries not covered in A and B schedule were included. These industries will be established by the private sector.

o Cottage and small scale industries: Govt. will make efforts to promote cottage and small scale industries. Those industries will make use of local resources and will generate employment. o Concession to public sector: Govt. will provide facility of power, transport and finance to public sector units. However, govt. will not adopt indifferent attitude towards private sector. o Balanced regional development: Industrially backward regions will be given priority in establishing industries. o Training to managers: Private and public sector managers will be given technical and managerial training so that they perform well. o Foreign capital: Policy laid down stress that foreign capital can play an important role in industrial development.

OBJECTIVES o To accelerate the rate of growth and speed up industrialization. o To develop heavy industries and machine making units. o To expand public sector. o To reduce disparities in income and wealth. o To build up a large growing cooperative societies. o To prevent monopolies and concentration of the wealth and income in a few hands.