Write short notes Industrial structure in India
Answers
But after independence and especially after the introduction of economic planning followed by the introduction of Industrial Policy Resolutions, 1948 and 1956 the importance of the public sector was realised. Accordingly, some definite category of industries was gradually reserved for the public sector for their expansion and development.
In this way, the sizes and activities of the public sector gained its momentum with the growing volume of planned expenditure for the development of public sector under different Five Year Plans of the country. Thus in a mixed economy like India, some industries are owned and managed by the State through its public sector and the remaining others are owned and managed by the private sector of the country.
In India, only those industries are reserved for the public sector which are essential for speedy development of the economy and where private sector is reluctant to invest either due to low rate of return or heavy risk involved in it.
In India, the area of activities of the public sector were very much restricted to a limited range like power, irrigation, roads, railways, port, communications and some departmental undertakings at the time of independence. But after independence, the area of activities of the public sector was expanded at a rapid pace. Two industrial policy resolutions adopted in 1948 and 1956 respectively have divided the industries of the country into different categories.
Accordingly, some industries were entirely reserved for the public sector, some industrial fields were left completely for the private sector. Such division of areas between the public and private sector reveals that while the heavy, basic and strategic industries were reserved for the public sector, the entire group of consumer goods industries, producing both consumer durables and non-durables was kept open for the private sector.
The entire agricultural sector, being the largest sector of the country has been left for the private sector. Again the infra-structural fields like railway, air transport, port, power, communications, banks, insurance, financial corporation’s etc. are reserved for the public sector.
The logic behind reserving the heavy and basic industries like iron and steel, heavy electrical plant, heavy engineering etc. for the public sector and the quick-yielding consumer goods industries for the private sector is quite simple.
Answer:
The present economic structure of Indian economy is known as mixed economy, where there is a coexistence of both the public sector and the private sector. All the different types of industries are divided between these two sectors.
EXPLAIN: The present economic structure of Indian economy is known as mixed economy, where there is a co¬existence of both the public sector and the private sector. All the different types of industries are divided between these two sectors. From the very beginning, most of the industries of the country were within the purview of private sector.
But after independence and especially after the introduction of economic planning followed by the introduction of Industrial Policy Resolutions, 1948 and 1956 the importance of the public sector was realised. Accordingly, some definite category of industries was gradually reserved for the public sector for their expansion and development.
In this way, the sizes and activities of the public sector gained its momentum with the growing volume of planned expenditure for the development of public sector under different Five Year Plans of the country. Thus in a mixed economy like India, some industries are owned and managed by the State through its public sector and the remaining others are owned and managed by the private sector of the country.
In India, only those industries are reserved for the public sector which are essential for speedy development of the economy and where private sector is reluctant to invest either due to low rate of return or heavy risk involved in it.
In India, the area of activities of the public sector were very much restricted to a limited range like power, irrigation, roads, railways, port, communications and some departmental undertakings at the time of independence. But after independence, the area of activities of the public sector was expanded at a rapid pace. Two industrial policy resolutions adopted in 1948 and 1956 respectively have divided the industries of the country into different categories.
Accordingly, some industries were entirely reserved for the public sector, some industrial fields were left completely for the private sector. Such division of areas between the public and private sector reveals that while the heavy, basic and strategic industries were reserved for the public sector, the entire group of consumer goods industries, producing both consumer durables and non-durables was kept open for the private sector.
The entire agricultural sector, being the largest sector of the country has been left for the private sector. Again the infra-structural fields like railway, air transport, port, power, communications, banks, insurance, financial corporation’s etc. are reserved for the public sector.
The logic behind reserving the heavy and basic industries like iron and steel, heavy electrical plant, heavy engineering etc. for the public sector and the quick-yielding consumer goods industries for the private sector is quite simple.