Competitive Exams New Industry Policy of India
Definition of Industrial policy
Industrial policies are action plans of any country's govt. Relating to industries and companies. Every country's Industrial policies are related two sectors one is public sector and other is private sector. Main objective of making industrial policies are to help industries for their development and also try to increase the sale of industries by making more attractive industrial plans by Govt.
New Industrial policies of India
New industrial policies have been made in India in 1991. It is also part of India's liberalization policy in which Govt. Is providing more powers to the industrial enterprises. There are following features of industrial policies of India.
When a company starts a new factory in specific industry, it has to get license from Govt. Reduced the member of licensed industries from 18 to 8 and these are related to security and social welfare of people. Reducing the no. Of industry helps companies to get position in new work and Govt. Thinks that it will be help to generate new employment and also will support to private enterprise to enter in all sectors because Govt is closing the trend of reserve only for public sector companies.
The following industries which now reserve under govt. Sector.
Arms and ammunition and allied items of defense equipment, Defense aircraft and warships.
Coal and lignite.
Mining if iron ore, manganese ore, chrome ore, gypsum, sulphur, gold and diamond.
Mining of copper, lead, zinc, tin, molybdenum and wolfram.
Minerals specified in the Schedule to the Atomic Energy (Control of Production and Use) Order, 1953.
Public sector policy
Under new industrial policy, govt. Of India started to reconstruct public sector which are getting loss and also encourage private enterprise to purchase shares of PSU. The Public sector company whose turnover is more than 2 crores rupees, govt. Has started specially care on them for their stable development.
Direct foreign investment
Under industrial policies, govt. Of India has opened doors for all foreigner for investing 51% direct investment in Indian industries. For this they need not take special acceptance from govt. Of India.
Govt of India is supporting Indian manufacturer for importing new technology with large paper works. After this, many Indian manufacturers have imported different advance technology for effective production.
Small scale industrial policies
Govt. Of India has increased the limit of investment in Small scale industries from Rs. 2 Lakhs to Rs. 5 Lakhs and also power to export up to Rs. 75 lakhs under small scale industries.
Criticisms of New Industrial policy
Ignore to unemployed peoples
unprotect small scale industries
Transfer of India currency to foreign country in the form of profit under new direct foreign investment policy.