The main aspects of privatization in India are as follows: 1. Privatization is necessary to face global competition. The Seventh Plan recognised the need to consolidate on these strengths and to take initiatives to prepare Indian industry to respond effectively to the emerging challenges. In brief, it is a statement of objectives to be achieved in the area of industrial development and the measures to be adopted towards achieving these objectives. It lays down rules and procedures that would govern the growth and pattern of industrial activity.
It is flexible to some extent. Arms and ammunition and allied items of defence equipment, Defence aircraft and warships. Industrial policy, 1980 focused attention on the need for promoting competition in the domestic market, technological up gradation and modernization. With a view to injecting the desired level of technological dynamism in Indian industry, Government will provide automatic approval for technology agreement related to high priority industries within specified parameters. Market oriented reforms are sustainable and are gaining acceptance with resistance to privatization going down due to the benefits like improved efficiency through target oriented management and disposition of public funds into social and physical infrastructure of the nation. It is well established that Indian economy is a vibrant economy that exhibit remarkable potential of growth.
Modern management techniques were introduced. Greater competitive pressure will also induce our industry to invest much more in research and development and they have been doing in the past. Since there is 23 cities in India with a population of more than 1 million each, the new industrial policy has dispensed with government clearance for the location of projects except in the case of these 23 cities. Labour Participation in Management: The resolution accepted that in a socialist democracy, labour participation is very essential. Number of industries reserved for public sector was reduces from 17 to 3. The public sector, by developing basic and heavy industries, infrastructural services and capital goods industries was to help in creating an environment where private sector could expand and prosper. Under this, as already explained, government attempts to promote particular industries in interest of consumers and employment.
The system opposite to its rationale favored large enterprises and discriminate against backward regions. While the stabilisation policies were aimed at correcting the weaknesses that had developed on the fiscal and the Balance of Payments fronts, the structural reforms sought to remove the rigidities that had entered into the various segments of the Indian economy. While British producers had unrestricted access to Indian markets, Indian products were kept at bay by British industrial policy. This eliminates the requirement of prior approval of Central Government for establishment of new undertakings, expansion of undertakings, merger, amalgamation and takeover and appointment of Directors under certain circumstances. Further, many other industries that will act as customer are needed for survival of this industry.
The Industrial Policy Resolution of 1956 also gave importance to the public sector industries. It is must for a competitive automobile sector, construction sector, Infrastructure, Capital goods machinery sector, Defense sector. The Industrial Policy Resolution of 1956 identified the following three categories of industries: those that would be reserved for development in public sector, those that would be permitted for development through private enterprise with or without State participation, and those in which investment initiatives would ordinarily emanate from private entrepreneurs. Industrial Policy Resolution, 1956 This was meant to give a concrete shape to the mixed economy model and the ideology of Socialist pattern of society. The Industrial Policy 1948 was presented in the parliament by then Industry Minister Dr.
Industrial Policy Statement, 1973 The Policy Statement of 1973 drew up a list of industries to be started by large business houses so that the competitive effort of small industries was not affected. The attainment of technological dynamism and international competitiveness requires that enterprises must be enabled to swiftly respond to fast changing external conditions that have become characteristic of today's industrial world. These are alcohol, cigarettes, hazardous chemicals, drugs and pharmaceuticals, electronics, aerospace and defense equipments, and industrial explosives. Most models of deregulation undertake that firms are able to proficiently assign resources within the firm and that factor markets are frictionless. The Board should perform a promotional role so that domestic firms can derive the benefits of international markets. Privatization in India: In India, Privatization has been acknowledged with a lot of confrontation and has been dormant initially during the initiation of economic Liberalization in the country.
Technical and Managerial Personnel: The industrial policy of 1956 emphasizes on the provision of managerial and technical personnel in public services to meet the rapidly growing needs of the public sector and for the development of the cottage and small scale industries. However, there were numerous conflicting statements regarding the private participation. Some laws governing industrial relations have been enacted. Recognition of talents and good performance of work. Today only restrictive trade practices of companies are monitored and controlled.
Investments in infrastructure sector such as power generation have surged from players of various sizes in different states. The various elements, when put together, constitute an economic policy which marks a big departure from what has gone before. A good number of institutions were promoted to help entrepreneurship development, provide finance for industry and to facilitate development of a variety of skills required by the industry. Liberalization in India: The Government of India began the economic liberalization policy in 1991. In 1948, immediately after Independence, Government introduced the Industrial Policy Resolution. In the fast changing world of technology the relationship between the suppliers and users of technology must be a continuous one.
The state would also strengthen infrastructure power, transport etc. Achieving a socialistic pattern of society. Government encouraged the production of imported goods indigenously. The program's strategy is to create a nonpunitive environment through enforcement-related incentives for employees to report safety issues, even though the … se issues may involve an alleged violation of aviation regulations. Glass fibres of all types.