Indian Industrial Policies
During the pre-independent period the industrial sector was very small and the country did not have any significant industrial policy. After independence, the first formal initiative towards industrialization was the declaration of the Industrial Policy Resolution of 1948.
However, the more comprehensive, concerted and real planned effort towards industrialization commenced from the era of First Five Year Plan (FFYP) 1951-1956. The major step towards industrialization has been attributed to Industries (Development and Regulation) Act 1951.
Through this Act, the Union Government brought many key and basic industries under its control. The sectors of national importance namely atomic energy, arms and ammunition, aircraft, ship building, telephone and telegraph, iron and steel, coal, minerals, oils etc. have been brought under the exclusive sphere of government.
The Second Five Year Plan (SFYP) made a marked shift in the industrial policy and development of the country. The main aim of the second plan was to accelerate the growth of the economy through rapid industrialization.
The basic framework and direction for such rapid industrialization was laid down by the Industrial Policy Resolution of 1956 in tune with many provisions of the 1950's Constitution.
The resolution of 1956, having declared 'the adoption of the socialistic pattern of society as the national objective' urged that all industries of basic and strategic importance or in the nature of public utility services should be in the public sector for planned and rapid development. Thus, the State has, therefore, to assume direct responsibility for the future development of industries.
Another strategic dimension of the 1956 resolution was its emphasis on basic and heavy industries and capital goods industries to attain self-reliance in important sectors. This strategy also believed that rapid development within a limited span of time is possible through the development of capital goods industries rather then the consumer goods industries. The Plan created a strong foundation for the future economic development and provided support to the agriculture, village and small-scale industries and infrastructures.