Write short notes on Industrial Policy and Economic Planning.
As per the industrial policy, the development of industries is guided, controlled and promoted. Various policies have been issued by government defining the roles of government, private and cooperative organizations in the development of industries. The first industrial policy was, adopted in 1948 by the government. As per this policy, private organizations should play a role with in the framework of the policy.
Various objectives of new industrial policy are:
- To raise the economic growth rate.
- To achieve and speed up industrial development.
- To promote a balanced regional development.
- To define the role of small, village and cottage industries.
- To control private monopoly and concentration of economic power.
- To enhance the scope of government participation in industrial growth.
Planning is very important in order to achieve economic development and many countries have adopted broad economic policies for industrial growth. Five year plans in India were launched to achieve economic development.
The main objectives laid down in the plans have been:
- To increase agricultural production and achieve self-sufficiency in food grains.
- To lower down regional inequalities and achieve balanced regional development.
- To make use of limited resources in the best possible way.
- To provide more employment opportunities so as to curb the increasing labor force.
- To bring about industrial growth with particular emphasis on basic industries like chemicals, power and fuel, steel etc.
- To achieve a target growth of national income with a view to improve the living standard of people.
Economic planning provides an indication regarding priorities of development of different industries and even guides the process of development. It informs the extent to which private firms will be given scarce resources like power, finance and other facilities for growth.