1. INDUSTRIAL DEVELOPMENT IN INDIA

2. ROLE AND PROBLEMS OF INDUSTRIAL DEVELOPMENT IN INDIA
INTRODUCTION
For a predominantly agricultural country development of industries is must.
Industries play important role in the rapid economic growth of Indian economy.
Goods produced with four factors of production i.e. Land, Labour, Capital, Organisation.
Provides improved means of production like machines, chemical fertilizers to agriculture.

3. IMPORTANCE AND PRESENT POSITION
It is now as established fact that material riches and industries go together

4. ROLE OF INDUSTRIAL DEVELOMENT
There is a strong case for the industrialization of countries like India with vast manpower, large and varied resources and continental dimensions.
The main argument put forward in this regard are as follows-

5. RAISING INCOME It provide a secure basis for a rapid growth of income.
Industrial products largely dependent upon man’s efforts as against agriculture which depend upon factor nature.
The GNP, per capita is very high at $35,131in It is very low at $580 for the low income economies and around $2640 for the middle income countries.

6. MEETING HIGH INCOME DEMANDS
With advancement on the industrial front, the proportion of natural raw materials in finished products has declined.
Besides, the synthetics have greatly reduced the need for natural raw material
OVERCOMING DISPARITIIES IN EXPORT AND IMPORT ELASTICITES
An alternative to the development of industries is to concentrate on export of primary goods.
Import industrial goods from industrially developed countries.
Income elasticity of export goods of agricultural countries is low, while the income elasticity of import goods is high.

7. ANNUAL GROWTH RATE IN MAJORE SECTORS OF INDUSTRIES
YEAR WEIGHT
MINING
10.47
(11.46)
MANUFACTURING
79.36
(77.11)
ELECTRICITY
10.17
(11.43)
GENERAL
(100.00)
17.7
7.9
10.2
9.3
11.7
5.7
7.6
6.7
8.9
8.0
12.0
8.6
4.1
9.7
8.5
8.7
6.2
9.4
10.3
9.1
3.8
7.7
7.3
9.5
6.3
10.8
4.5
9.0
7.8
8.2

8. ABSORBING SURPLUS LABOUR
Provide work or job to rapid growing population.
It generates employment opportunities on an accelerated rate.
STRENGTHING THE ECONOMY
Production of a variety of goods in large quantity and at low costs.
Production of goods like railways, dams
of economic infrastructure
It fulfills the agricultural requirement

9. PROVIDING FOR SECURITY
Fulfill the national objective of self reliance in defence material.
BALANCED DEVELOPMENT
Indian economy- Unbalanced-50% population depends upon agriculture.
Development of industries and service sector.
INCREASE IN PRODUCTIVITY
Increase in per capita income productivity.
Increase in inter industrial linkages.
IMPROVEMENT IN STANDARD OF LIVING
Fulfilling requirements like fine cloths, domestic gadgets etc. .
Increase in level of employment and income.

10. ANNUAL GROWTH RATE IN THE INDUSTRIAL PRODUCT INDEX (IPI) IN INDIA
YEAR
MINING
(10.47)
MANUFACTURING
(79.36)
ELECTRICITY
(10.17)
GENERAL
(100.00)
9.7
14.1
8.1
13.0
2.8
5.3
4.0
5.0
1.2
2.9
3.1
2.7
5.8
6.0
3.2
5.7
5.2
7.4
5.1
7.0
4.4
9.2
8.4
1.0
9.1
8.2
5.4
12.5
7.2
11.6
4.9
9.8

11. ROLE IN NATIONAL DEFENCE
Produces defense material like weapons, tanks airplanes etc.
EXPORT PROMOTION
Increased production promoted export of engineering goods, automobiles etc.
Greater scope of export for labour intensive industries
IMPORT SUBSTITUTION
Production of close substitute of imported good in the domestic country.
Less dependence on foreign countries.
ROLE IN NATIONAL DEFENCE

12. GROWTH RATE IN INDUSTRIAL PRODUCTION BY USED BASED CLASSIFICATION
INDUSTRY GROUP
WEIGHT
BASIC GOODS
35.5
(39.4)
10.9
3.8
5.5
2.6
4.9
6.7
10.3
8.4
CAPITAL GOODS
9.3
(16.4)
17.4
6.9
-3.4
10.5
13.9
15.8
18.2
20.8
INTERMEDIATE GOODS
26.5
(20.5)
3.7
6.1
8.8
-1.5
3.9
2.5
12.0
10.1
CONSUMER GOODS
28.7
(23.6)
13.8
10.4
5.7
6.0
7.1
11.7
2.0
5.2
CONSUMER DURABLES
5.4
(2.6)
14.8
14.1
11.5
-6.3
14.4
15.3
9.2
-1.7
CONSUMER NON-DURABLES
23.3
(21.0)
9.4
3.2
4.1
10.8
11.0
7.8

13. PROBLEMS OF INDUSTRIAL DEVELOPMENT
PRESENT POSITION
Indian industry, though not much advanced, is no longer a backward one. The industrial scenario is quite an impressive one.
INDUSTRES AND COMPOSITIONS
The number of industries is very large, with a massive number of producing units engaged in the production of a great variety of products.
Large industries
Small industries

14. SHORTAGE OF POWER RESOURCES
Three sources-Electricity,coal,oil.
Supply of hydro electricity and thermal electricity is far less then demand.
Cost of production increases and profit falls.
Poor quality coal- mainly coal mines are located in eastern part.
INSUFFICIUENT CAPITAL
Low income results in almost zero saving capacity so also their investment.
Saving in the form of real estate, jewellery etc.
Large and medium sized industries meet their capital needs from stock market, financial institutions, banks etc.

15. INSUFFICIENT ECONOMIC INFRASTRUCTURE
Means of transportation like roads, motor transport, railways, waterways, airways etc. are not fully developed.
OLD PLANT AND MACHINERY
Industries are deprived of modern machinery.
Due to this production cost is high and quality of products is low.
Fail to compete with foreign countries.

16. PROBLEMS OF RESEARCH AND INNOVATION
No improvement in the quality of products due to lack of research and innovation.
India spends 0.88% of their GNP while most of developed countries spend 2.3& OF THEIR GNP on research and development.
INDUSTRIAL SICKNESS
Fail to repay loans and interest and provident fund to laborers.
Large stock due to lack of sale of output

17. REGIONAL INEQUALITY
60% Of the industries are located in Maharashtra, Gujarat, Karnataka.
These states contribute 70% of total industrial output.
DEFECTIVE INDUSTRIAL PRODUCTION STRUCTURE
Large amount of investment have been made in industries producing mass consumption goods like AC, TV sets etc.
Wage goods has not increased much.

18. UNDER UTILISATION OF PRODUCTION CAPACITY
Less production and rise in production cost.
E.g. Industrial disputes, shortage of power etc.
INDUSTRIAL DISPUTES
Strikes and lockouts- because of disputes between trade union and employers.
It results in fall in production and profit.
HUMAN CAPITAL
Illiterate and unhealthy laborers and lack in technical skills.
Low efficiency of migratory laborers.

19. LESS DEVELOPMENT OF SMALL INDUSTRIES
Contribution of micro, small and medium enterprises in total industrial production was 45% and of large industries was 55%.
INDUSTRIAL POLLUTION
By not installing the pollution control equipments.
Causing air as well as water pollution.

20. PRODUCTION OF IMPORTANT INDUSTRIES
UNITS
FINISHED STEEL
LAKH TONNES 10
606
660
ELECTRICITY
Bn. KWH
5.1
796
811
CRUDE OIL 3
337
377
FERTILIZERS
THOUSAND TONNES 18
16,221
16,378
CEMENT 27
2,007
2,097
CLOTH
Bn. SQ. METERS
7.9
2,351
2,453
PASSENGER CARS
IN THOUSANDS
4.5 60
62.5

21. CONCLUSION
A prosperous nation needs well-developed industries to provide the amenities of life to its citizens. Food may be a basic need but for a comfortable life we need clothes, shelter, electricity, machinery and numerous other things.
The countries that cannot provide these facilities to its people are considered backward and underdeveloped. Agriculture itself is dependent on industry for its development. Tractors, threshers, electric motors are all industrial products. In fact, in our daily lives we are all dependent on manufactured goods. This was one reason our Planners recognized the importance of developing our industries.
When India became independent, very few industries existed in the country like textiles and sugar. Heavy industry was more or less non- existent. Industries like iron and steel, cement, machine tools, and transport which are essential for the development of other industries hardly existed.
Industry contributed only ten per cent to the national income in while agriculture had a share of fifty-two per cent. After the Five-Year Plans initiated a programme of industrial development a great change took place. At present the agricultural share has decreased whereas the share of the industry has gone up since independence.

22. After independence goverenment announced a progressive industrial policy
Industries development and regulation act was enforced in
Announcement of a liberalized industrial policy in 1991.
During planning period India was tenth largest industrial country in the world.
Rehabilitation of sick industrial units.
Many financial institutions were established like industrial finance, corporation of India, export import bank of India, public sector bank, state finance corporations, development bank of India etc.

23. Thank you
BY- NITTU SANGWAN (ROLL No. 1262) NEHA CHUG (ROLL No. 1595)