1948 Industrial Policy Analysis

The Industrial Policy plan of a country, sometimes shortened IP, is its official strategic effort to encourage the development and growth of the manufacturing sector of the economy. The government takes measures "aimed at improving the competitiveness and capabilities of domestic firms and promoting structural transformation." A country 's (transportation, telecommunications) is a major part of the manufacturing sector that usually has a key role in IP. It is also the case that industries fail dismally to add to such a growing body of manufacturing industries.

Industrial policies are sector specific, unlike broader macroeconomic policies. They are often considered to be interventionist as opposed to laissez-faire economics. Examples of horizontal,

The rest of the industries were left open to the private enterprises, individual as well as co- operative. The State would intervene whenever the progress of any industry under private enterprise was found to be unsatisfactory.

For the development of small scale industrial sector it was decided in the Industrial Policy of 1948 to develop this sector on co- operative lines as far as possible. Industrial Policy of 1948 also recognized the need for securing the participation of foreign capital and enterprises, particularly related to industrial technique and knowledge.

The main thrust of the 1948 Industrial Policy was to lay the foundation of a mixed economy where both the private and public enterprises were to be given importance and work together to develop economy to accelerate the pace of industrial development.

In order to regulate the industry and to promote planned industrial development according to the Industrial Policy of 1948, the Industrial (Development and Regulation) Act in 1951 was passed. The principal objective of the Industries (Development and Regulation) Act 1951 was to arm the Government with sufficient power. The important provisions of the Act