Economic Policy

Historical

Perspective
The emergence of planning

;the need for planned , co-
ordinated economic development
under the government guidance
was recognised all along the
freedom movement
Bombay plan 1944 a blueprint for
economic plant after independence
was worked out by eight top
industrialists , notably Tata birla
sriram
Planning commission
Set upin march 1950
Its task was to make an assessment of
the material, the capital and the most
effective utilisation of resources
Indias economic history may be
broadly divided into
The period from 1947to mid 1950s
mid 1950s to mid 1960s
Late60s to 1970s
Phase of liberalization in 1980s and
thereafter gearing up in 1990s
Planning commission
PM
FPUR FULL TIME MEMBERS
MINISTER OF PLANNING
Minister of finance
Minister of defence
Main function
Real assessment of resources
Formulating plans
Defining stages of plan
Identifying the retarding factors
Determining plan machinery at early
stage
Periodic policy measures
Additional recommendations
Objectives of planning in India
Attainment of higher rate of economic
growth
Reduction of economic inequalities
Achieving full employment
Attaining economic self reliance
Modernisation of various sectors
Redressing of balances in the economy
Industrial policy an historical
perspective
EAST INDIA COMPANY
FIRST WORLD WAR
SECOND WORLD WAR
GOVERNMENTS ROLE
OBJECTIVES OF
INDUSTRIAL POLICY

SOCIALISTIC PATTERN
PREVENTING UNDUE
CONCENTRATION OF ECONOMIC
POWER
ACHIEVING I9NDUSTRIAL
DEVELOPMENTS
ACHIEVING ECONOMIC GROWTH
REDUCING REGIONAL DISPARITIES
CONTINUEATION
DEVELOPING HEAVY AND CAPITAL GOOD
INDUSTRIES
PROVIDING OPPORTUNITIES FOR
GAINFUL EMPLOYMENT
EXPANDING THE PUBLIC SECTOR FOR
ACHIEVING THE SOCIALISM
ACHIEVING THE FASTER ECONOMIC
GROWTH
ACHIEVING A SELF SUSTAINED ECONOMY
CONTINUATION

ALLEVIATING POVERTY
PROTECTING AND DEVELOPING A
HEALTHY SMALL SECTOR
BUILDING UPLARGE CO-OPERATIVE
SECTOR
UPDATING TECHNOLOGY AND
MODERNISATION OF INDUSTRY
LIBERALIZATION AND GLOBALIZATION OF
ECONOMY
SALIENT FEATURES OF NEW
POLICY
Equity participation up to 24 per cent
Legislation totolimit financial liabilityof new
or non active partner
Hike in investment limit for tiny sector
Services sector to be recognized as tiny
sector
Support from national equityfund for projects
up to rs 10 lakh
Single windows loans to cover projectsup to
rs 20 lakh
continuation
Relaxation of certain provision of labour
laws
Sub contracting exchanges to be set upby
industry associations
Early access to institutional finance
Factoring services
Women enterprises redefined
Marketing of mass consumption item