Industries: Policies and Major Industries in India

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The term Industries indicates to an economic activity that is concerned with the processing of raw materials and manufacture of goods in factories. Indian Industries covers a wide range of activities and has enormous possibility of growth.

Industrial Policies

  • Industrial Policies were launched in 1948, 1956, 1977, 1980 and 1991.
  • Industrial Policy 1956 is called ‘Economic Constitution of India’ and gave public sector the strategic edge.
  • Industrial Policy 1991 opened up the economy.
  • The main aims were: (a) to end license-permitraj; (b) to integrate Indian economy with the outer world; (c) to remove restrictions on FDI and (d) to reform public sectors.

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Public Sector Enterprises (PSEs)

  • Industries requiring compulsory licensing (a) distillation and brewing of alcoholic drinks; (b) cigar and cigarettes of tobacco; (c) electronic aerospace and defence equipment; (d) industrial explosives; (e) specific hazardous chemicals.
  • Areas reserved for public sector are (a) atomic energy – production, separation and enrichment of fissionable materials; and (b) railways.
  • Present policy on PSEs is to (a) not to privatize profit-making companies and to modernize and revive sick companies; (b) initial public offering route to disinvestment.
  • There are 249 Central PSEs as on 31st March, 2010.

Navratnas and Maharatnas

  • The concept of Navratnas were started in 1997. At present there are 16 Navratnas and 65 Miniratnas.
  • Navratnas Bharat Electronics Ltd, BPCL, HAL, HPCL, MTNL, NALCO, National Mineral Development Corporation, Nevyeli Lingnite Company Ltd, Oil Corporation of India Ltd, Rashtriya Ispat Nigam Ltd, Rural Electrification Corporation Ltd and Shipping Corporation of India Ltd.
  • Maharatnas were started in 2009. Seven Maharatnas BHEL, GAIL (India) Ltd, ONGC, SAIL, IOC, NTPC and Coal India Ltd.

Also Read: Indian Industry: Rules, Policies and Types

Committees

  • Hazari Committee on Industrial Policy.
  • Subimal Dutt Committee on Industrial licensing.
  • Abid Hussain Committee on Small Scale Industry.
  • C Rangarajan Committee on disivestment.
  • Memorandum of Understanding (MoU) – Arjun Sengupta.

Small Scale Industry

  • A new thrust to small scale industry, given in Industrial Policy of 1977.
  • MSMED Act, 2006 and new definition. Contributes 8% to GDP, 45% to all manufacture and 40% to exports.
  • According to the 4th Census (2009) of SSIs, 67% of the MSME are in manufacturing and 33% are in services sector.

Major Industries in India

Iron and Steel

  • 1st Steel Industry at Kulti, Paschim banga – Bengal Iron Works Company was established in 1870.
  • 1st large scale steel plant – TISCO at Jamshedpur (1907) by IISCO at Burnpur (1919), Paschimbanga.
  • The first public sector unit was Visvesvaraya iron and steel works at Bhadrawati.
  • Presently, India is the 4th largest producer of steel and comes 1st in the production of sponge iron.

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Jute Industry

  • First modernized industry unit was established at Rishra in Paschimbanga in 1855.
  • India ranks No. 1 in jute production and No. 2 in raw jute exports after Bangladesh.
  • More than 2/3rd jute industry is concentrated in Paschimbanga.

Cotton and Textile Industry

  • Largest organized and broad-based industry accounting for 4% of GDP, 20% of manufacture value added and one third of total exports earning.
  • The first Indian modernized cotton cloth mill was established in 1818 at Fort Golster (Calcutta). The second mill named Bombay Spinning and Weaving Company, established in 1854 at Bombay by KGN Daber.
  • The Multi-Fibre Agreement (MFA) under, World Trade Organization ended on 31st December, 2004, finally integrating textile sector into WTO rules. Programmes Technology Upgradation Fund Scheme (PTUFS) 1999; Scheme for Integrated Textile Park ()SITP), July 2005.

Sugar Industry

  • India is the second largest producer of sugar in the world with a 22% share.
  • It is the second largest agro-based industry in the country.
  • BB Mahajan Committee is related to sugar industry. Sugar Development Fund was set up in 1982.

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Cement Industry

  • First Cement producing unit was set up at Paschimbanga, Porbandar (Gujarat), in 1914.
  • India is the second largest producer of cement in the world.

Fertilizer Industry

  • First fertilizer industry at Ranipet (Chennai) in 1906.
  • India meets its 85% requirement of urea indigenously.
  • India is the third largest producer of fertilizers in the world after China and USA. NPK consumption ratio in 2008-09 was 4.6:2:1.

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