1. Trends in industrial development
Chapter 5
Trends in industrial development

2. meaning of industrialisation
Strong industrial base
Diversification of industrial base
More importance to industrial sector
Industrial development during planning----
india’s rank – 10th most industrialised nation

3. Industrial development during
first plan – 56
Many industris were set up; although it was an agricultural plan
Some items reserved for small sector
Growth rate-7.5%

4. Second plan 1956-61 P.c mahalanobis model Steel plants
Fertilizers plants
25% 0f total plan outlay was spaent on industries
Growth rate-6.6%

5. Third plan 1961-66 Focus on completion of projects started in 2nd plan
Hmt and other industries set up
Growth rate – 9%

6. plan holiday 1966-69 Political reasons Indo china war;; indo pak war
Above all- economic reasons– failure of third plan due to bad agriculture production
Growth rate – 1.6%

7. Fourth plan 1969-74 plan target was self -reliance
It failed to achieve its targets
19.7% of the total outlay spent on industries
Growth rate- 4.5%
Increase in industrial estates to 465.

8. 5th plan 1974-78 self sufficiency and growth & social development
Objective– dev of core sector; dev of export sector ; supply of mass consumption goods
encouragement to village and small industries
24.3% of total outlay spent on industries
growth rate was- 5.9% ;

9. Sixth plan
objectives –optimum use of existing capacity of industrial sector; to increase productivity both in public and private sector to produce mass consumption goods and capital goods; intermediate goods
Better technical progress;import of foreign technology
26.5% of total outlay
Growth rate – 6.4%

10. Seventh plan
supply of consumer goods; increase in productivity;
Threfore high order technology was used;improvement s in labour productivity
23. 7% of total outlay
8.5% growth rate

11. Plan holiday1990-92 Annual plans were formulated.
introduction of economic reforms
Liberalisationn ;privatisation; globalisation
Growth rate – 4.4%

12. Eighth plan 1992-97 More importance to industries 18.8% of outlay
Growth rate – 6.8%
More importance to private sector
Foreign companies – more important role
More emphasis on moderisation and rennovation

13. Ninth plan 1997- 2002 8.2% of total expenditure Growth rate -5%
Impact of global slowdown
Private sector more important
Efforts to attract foreign investment speeding up of liberalisation.

14. Tenth plan 2002-07 4% of the total outlay
New challenges-1)removal of quantitative restrictions on imports ,leading to more competition 2) reduction in the role of public sector , leading to expansion of private sector
Emphasis on dev of infra structure
Special concessions to readymade garment industry

15. Tenth plan
to make industry more competitive, R& D modernisation, technological upgradation were emphasised.
Disinvestments in public sector units.
special concessions to export oriented units.
Special economic zones set up