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Questions and Answers
What is the primary purpose of the Industrial Policy Resolution of 1948?
What is the primary purpose of the Industrial Policy Resolution of 1948?
Which industry marks the beginning of modern industrialization in India according to the historical context provided?
Which industry marks the beginning of modern industrialization in India according to the historical context provided?
What significant impact did British colonial policies have on India's traditional handicraft industry?
What significant impact did British colonial policies have on India's traditional handicraft industry?
Which of the following industries was categorized under 'exclusive monopoly of central government' as per the Industrial Policy Resolution of 1948?
Which of the following industries was categorized under 'exclusive monopoly of central government' as per the Industrial Policy Resolution of 1948?
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What was a direct consequence of the Industrial (Development and Regulation) Act of 1951?
What was a direct consequence of the Industrial (Development and Regulation) Act of 1951?
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Which sector has not been included in the 'open to private enterprise, individual and cooperatives' category as per the Industrial Policy Resolution of 1948?
Which sector has not been included in the 'open to private enterprise, individual and cooperatives' category as per the Industrial Policy Resolution of 1948?
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What was the contribution of the industrial sector to the total gross value added in the Indian economy as reported in the Economic Survey 2022-23?
What was the contribution of the industrial sector to the total gross value added in the Indian economy as reported in the Economic Survey 2022-23?
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What was one of the reasons for India's weak industrial base at the time of independence?
What was one of the reasons for India's weak industrial base at the time of independence?
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In what year was the first modern paper mill established in India?
In what year was the first modern paper mill established in India?
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Which industries were emphasized for growth during the two world wars according to the evolution of industry in India?
Which industries were emphasized for growth during the two world wars according to the evolution of industry in India?
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Study Notes
Manufacturing and Industry
- Manufacturing involves transforming primary products into secondary products by adding value.
- Industry encompasses the production of goods and related services, also including agriculture, transportation, and hospitality.
Objectives of Industrial Development
- Aim to reduce regional imbalances across the economy.
- Focus on promoting an export-oriented industrial framework.
- Encourage foreign direct investment (FDI) inflows to stimulate growth.
- Support overall economic growth within the country.
- Strengthen the agricultural base to support industrial activities.
Evolution of Industry in India
- India has a rich history in cotton textiles, spices, precious stones, and handicrafts, renowned since ancient times.
- Pre-colonial India was industrially more advanced than contemporary Western European economies.
- Traditional craftsmanship thrived due to the use of local materials, enriching industries such as textiles, stone carvings, and pottery.
- The British colonial impact devastated India's traditional industries, disrupting local production and exportation patterns.
- Colonial policies favored raw material extraction while importing finished goods, undermining India's industrial base.
- By independence, India was left with a fragile industrial foundation and poor infrastructure.
- The modern industrial sector in India began with the establishment of the Cotton Textile Industry in Bombay (1854) and the Jute Industry (1855).
Industrial Policy since Independence
Industrial Policy, 1948
- Established a Mixed Economy framework, dividing industries into four categories:
- Exclusive monopoly of central government: Included sectors like arms, atomic energy, and railways.
- Mixed sector: Featured coal, iron and steel, aircraft manufacturing, and telecommunications.
- Government-regulated industries: Included vital sectors like automobiles, heavy chemicals, and fertilizers.
- Open to private enterprise: Encompassed all remaining industrial areas.
Industrial (Development and Regulation) Act, 1951
- Formulated to support the Industrial Policy Resolution of 1948, regulating and developing industries in India.
- The first paper mill was established at Ballygunge near Kolkata in 1870, and the first steel production using modern methods occurred at Kulti in 1874.
- Tata Iron and Steel Company launched at Jamshedpur in 1907.
- The two World Wars catalyzed growth in industries such as chemicals, iron and steel, and sugar production.
- Indian firms gained the ability to negotiate technology transfer terms with foreign companies.
- Amended the Monopolistic and Restrictive Trade Practice Act to ease constraints on MRTP companies.
- The industrial sector contributes around 30% of the total gross value added in India’s economy, according to the Economic Survey 2022-23.
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Description
Explore the concept of industry as a process of transforming primary products into secondary products. This chapter delves into manufacturing, the production of goods, and various commercial activities like agriculture and transportation. Understand the objectives of industrial development and its broader implications.
