Industrial development plays a crucial role in India's
development strategy. It aims at achieving various socio-economic objectives
such as reducing debt burden, promoting foreign direct investment (FDI)
inflow, enhancing self-reliant production and distribution as well as
diversifying and modernising the existing economic set up. The industrial
base has been widely expanded, covering broadly the entire range of consumer,
intermediate and capital goods. It has made considerable achievement in
terms of output and employment. The Government of India has been undertaking
several policy measures and incentives, from time and time, in order to
promote rapid industrialization in the country. The major step in this
direction has been the announcement of Industrial Policy Resolution, initially
passed in 1948 and then in 1956 and thereafter in 1991. Such industrial
policies have been designed to accelerate the development process in the
Indian industry. Their broad objectives are to:-
- Maintain a sustained growth in productivity
- Enhance gainful employment
optimal utilisation of human resources
- Attain international competitiveness
and to transform India into a major partner and player in the global arena.
They focus on deregulating Indian industry as well as allowing it flexibility
in responding to market forces.
Automotive, being one of the largest industries, facilitates
the improvement in various infrastructure facilities like power, rail
and road transport. 'Ministry of Heavy Industry and Public Enterprises'
is the main agency for promoting the growth and development of the automotive
industry. The policy incentives like implementation of auto policy and
Automotive Mission Plan, along with establishment of world class testing,
homologation and certification facilities, have made India as the world's
second largest manufacturer of two wheelers, fifth largest manufacturer
of commercial vehicles as well as largest manufacturer of tractors.
Over the years, the engineering industries, both light and
heavy engineering, have registered an impressive growth rate and are having
a strong base in production of various capital and consumer durable products.
'Department of Heavy Industry' is concerned with the development of heavy
engineering industry in the country, which are the basis for power projects,
cement plants, steel plants, mining equipment, petro-chemical plants,
etc. and includes boilers, electrical furnace, material handling equipments,
metallurgical machinery, rubber machinery, oil field equipment, etc. While,
light engineering is a diverse industry with the number of distinctive
sub-sectors such as medical and surgical instruments; ferrous castings;
seamless steel pipes and tubes; process control instruments, welding equipments;
etc. It is of high importance to the Indian economy and is the basis of
almost all productive and business activities in the country.
The Department of Industrial Policy and Promotion (DIPP),
under the Ministry of Commerce and Industry, is the nodal agency for the
development of entire industrial sector in general and of cement, light
engineering industries, etc. in particular. Cement is one of the core
infrastructure industries showing impressive growth over the years and
has found ready markets in Bangladesh, Indonesia, Malaysia, Nepal, Middle,
East countries, Burma, Africa and South East Asian countries. India is
the second largest manufacturer of cement in the world.
Biotechnology is among the fast growing knowledge-based
industrial sectors which has the immense potential to revolutionize agriculture,
healthcare, industrial processing and environmental sustainability. The
'Department of Biotechnology (DBT)' is an apex authority for the development
of biotechnology sector in the country and is accordingly setting up biotech
parks and incubators centres in various States and organizations. While,
the rapid build-up of fertilizer production capacity in the country has
been achieved as a result of a favourable policy environment. The 'Department
of Fertilizers' is a nodal agency for planning, promoting and developing
the fertilizer industry in India.
Due to globalisation and rising demands of infrastructure,
real estate and auto sectors, Indian steel has become one of the fastest
growing industry. The 'Ministry of Steel' is a nodal authority for the
overall development of iron and steel industry in India. Price and distribution
controls have been removed as well as foreign direct investment upto 100%
(under automatic route) has been permitted in the sector. Whereas, the
'Ministry of Mines' is responsible for overall development of minerals
and mining sector in the economy. It is involved in the matters like survey
and exploration of all minerals (other than natural gas and petroleum);
mining and metallurgy of non-ferrous metals like aluminium, copper, zinc,
lead, gold, nickel etc.; and administration of the Acts relating to mines
and minerals (other than coal and lignite).
Drugs and pharmaceutical is another significant industry
showing considerable progress over the years. India holds fourth position
in terms of volume and thirteenth position in terms of value of production
in pharmaceuticals. The Department of Chemicals and Petro-Chemicals, under
the Ministry of Chemicals and Fertilizers, is responsible for planning,
developing and regulating the industry. Several policies have been announced
like drug and pharmaceutical policies, which aim to ensure abundant availability,
at reasonable prices, of essential life saving and prophylactic medicines
of good quality.
Also, the Indian food processing industry is one of the
largest in the world in terms of production, consumption, export and growth
prospects. Automatic approval for foreign equity upto 100 per cent is
available for most of the processed food items, excepting alcohol and
beer and those reserved for small scale sector. The 'Ministry of Food
Processing Industries' is the nodal agency for developing a strong and
vibrant food processing sector in the country. Many new items like ready-to-eat
food, beverages, processed and frozen fruit and vegetable products, marine
and meat products, etc. are being produced as well as cold storage facilities,
food parks, packaging centres, etc. are being set up.
Thus, industries are the mainstay of the Indian economy.
They help to promote regional development, eradicate poverty as well as
uplift the standard of living of the people. India's vast domestic market,
skilled and technical manpower as well as low production and R&D costs
have been making India a manufacturing hub.