Phases of Industrial development in India

Phases of Industrial development in India

a. Industrial development during 1950s to1965

During this phase, a majority of consumer goods were produced in India. The industrial sector was underdeveloped with weak infrastructure. Technical skills were in short supply. The first three Five-Year Plans were very important because their aim was to build a strong industrial base in independent India. These plans mostly focused on the development of capital goods sector. As a result, this phase witnessed a strong acceleration in the growth rate of production.

b. Industrial development during 1965–1980

As the first three Five-Year Plans mostly focused on the development of the capital goods sector, the consumer goods sector was neglected. The consumer goods sector is the backbone of rural economy. As the result, there was a fall in the growth rate of industrial production. So this period is marked as the period of structural retrogression.

c. Industrial Development during 1980s till 1991

The period of the 1980s can be considered as the period of the industrial recovery. This period witnessed quite a healthy industrial growth.

d. Industrial Development Post 1991 Reforms

The year 1991 ushered a new era of the economic liberalisation. India took major decision to improve the performance of the industrial sector. The Tenth and Eleventh Five-Year Plans witnessed a high growth rate of industrial production. The abolition of industrial licensing, dismantling of price controls, dilution of reservation of small-scale industries and virtual abolition of monopoly law enabled Indian industry to flourish. The new policy welcomes foreign investments.