m The first Industrial policy was declared in 1948

m It established a base for MIXED AND

CONTROLLED ECONOMY in India
m It clearly divided the industrial sector into private
and public sectors.
m Industrial policy , 1948 was replaced by a new IPR
declared on April 30, 1956
m Objective of establishing µ Socialistic pattern of
Society¶ in the country.
m Public sector had the primary responsibility for
rapid industrialization in key sectors , private
sector had a complementary and supplementary
role.
m Made in the context of a series of socialist policies
including bank nationalization (1969)
and MRTP Act , 1969
m It retained the philosophy of IPR 1956, it made
licensing stringent for large industrial houses
m Concept of µ Joint Sector¶
m Establishment of SIA ( Secretariat of Industrial
Approval ) to provide single window clearance.
m During Janata Party Government
m Emphasised on small and cottage industries and
reserved certain industries for these sectors.
m A tiny sector (investment limit Rs 1 Lakh) was
recognised.
m Strong biased against large scale and heavy industry.
m Establishment of DIC as the nodal point for raw
material distribution, credit facility, marketing for small
scale and cottage industries.
m Vorrowing for large scale industries for expansion
and modernization was severely restricted.
m Graphical dispersal of industries through the
system of incentives.
m The new Congress govt. drafted it
m It sought to reverse the ideological bias of 1977
statement .
m Commitment for export production and
liberalization of licensing.
m Coordinated development of small , medium and
large industries
m Industrial sickness was sought to address by
devising of an early warning system
NEW INDUSTRIAL
POLICY 1991 (NIP
1991)
m To maintain a sustainable growth in productivity
m To enhance gainful employment.
m To achieve optimum utilization of human
resources.
m To attain international competitiveness.
m To transfer INDIA into a major partner and player
in the global arena.
m Deregulating Indian Industry.
m Allowing the Industrial freedom and flexibility in
responding to market forces
m Providing a policy regime which facilitates and
foster growth of Indian Industry.
m Liberalization of Industrial Licensing Policy.
m No industrial approval is required for industries not
requiring compulsory lecensing.
m Liberalisation of Locational policy
m Liberalised policy for Small Scale Sectors.
m NRI scheme.
m EHTP/ STP Scheme for building up strong
electronic industry to enhance exports.
m Liberalised policy for FDI
m According to the NIP, an industrial licensing is
required under the Industries Act, 1951 in the
following cases
A. When the project involves manufacture of an
item which is on the list of industries of an item
which belongs to list of industries requiring
compulsory license.
V. The project attracts locational restriction
restriction applicable large cities with population
> 10 lakh
A. When an item reserved for small scale sector is
intended to be manufactured by other than small
scale industries.

In case a project not covered under licensing ,

the firm shall file a memorandum in the
prescribed form with SIA.
m Distillation and brewing of alcoholic drinks.
m Cigar , Cigrettes and other substitutes of prepared
tobacco.
m Electronic aerospace and defence equipment.
m Explosives including match boxes
m Hazardous chemicals
1. Atomic energy
2. The substance specified in the schedule to the
notification of GOI in the DAE
3. Railway transport