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Vikas Singh ± 54
Santanu Ghosh - 43
Vineet Upadhyay ±55
Ashish Chodankar ±08
Sulabh Manchanda ±50
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  !" # $%&' %" "
(  )#*+

he importance to the economy of securing
a continuous increase in  '!," #
 ts equitable '"-!" #
3 State must play of progressively active
role in the '. $#" of c#'!"
4 t laid down that besides arms and ammunition,
%" $, #*/ %#' %)%/ transport, which
would be the $ #  / of the Central
Government, the State would be exclusively
responsible for the establishment of new
undertakings in six basic industries-except where,
in the national interest, the State itself found it
necessary to secure the , %" # ( .%"
#"
5
he rest of the industrial field was left
open to .%" #" though it was
made clear that the State would also
progressively participate in this field
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 c 01"2
 mproving .#* "%#'%' %#' ) 3#*
, #'" # for the mass of the people

o reduce disparities in #, $ %#'
)%"
3
o prevent .%" $ #   and
concentration of economic power in
different fields in the hands of small
numbers of individuals
4
he State will progressively assume a
predominant and direct responsibility for
""#* ! #) #'!"% !#'"%3#*
and for '. #* "%# " (%,"
5 ndertake State "%'#* on an increasing
scale
 At the same time .%" ,"  will have
the  "!#"/ to develop and expand
Ô
he principle of , %" # should be
applied whenever possible and a steadily
increasing proportion of the activities of the
.%" ,"  developed along cooperative lines
8
he adoption of the  ,%" pattern of society as
the national objective

he need for %##' %#' %' '. $#"
0 All industries of basic and "%"*, $ "%#,,
or in the nature of public utility services, should be
in the !-, ," 
 t is always open to the "%" to undertake %#/
"/ ( #'!"%  '!," #
 Categorization of industries;
i) n the first category will be industries the
(!"! '. $#" of which will be the exclusive
responsibility of the State
ii)
he second category will consist of
industries which will be progressively state-
owned and in which the State will,
therefore, generally take the initiative in
establishing new undertakings, but in which
.%" #" ) % - 4,"' "
!$#" the efforts of the State
iii)
he third category will include all the
remaining industries, and their future development
will, in general, be left to the initiative and
enterprise of the .%" ," 
3
he Government of ndia would stress the role of
, ""%* %#' .%* %#' $% ,% #'!" in
the development of the national economy
4
%" in levels of development between
'((#" * # should be  *./
'!,'5
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 6780

he ndustrial Policy Resolution of 5
still remained valid, but ,"%#
"!,"!%'" " # had crept in the
system

he #) , were hence directed
towards $ .#*"'" " #
3 t provided for a , #"%," #
between the %*,!"!%%#'#'!"%
," 
4 Accorded the *"  "/ to the generation
and transmission of  )
5 An 4%!". %#%/ of industrial products was
made to '#"(/  '!," which are capable of
being produced in the $% ,% ," 

he " ( #'!" exclusively reserved for the
$% ,% ,"  was expanded from 1 "$
" $  "%# 211 "$5
Ô ithin the small scale sector, a "#/ ," 
was also defined with #."$#" # $%,#/
%#' 9!$#" !" 5 %3 and situated in
towns with a population of less than 50,000
according to Ô census figures, and in villages
8 ,% *%" # to protect cottage and
household industries was also proposed to be
introduced
 t was also decided that compulsory 4 "
-*%" #, merely for ensuring the foreign
exchange balance of the project, would no longer
be insisted upon while approving new industrial
capacity
0 n the areas of , , #"  of agricultural and
industrial products, the prices would be regulated
to ensure an adequate return to the investor
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6 7088
 ndustrial Policy Highlights on producing #!"
needed by a %* #!$- ( $% !#" and
making adequate marketing arrangements

he #!,! %#" would also work for
upgrading the ",#  */ ( $% !#"
3
he Government would promote the
'. $#" ( % /"$ ( #3%* between
nucleus large plants and the satellite ancillaries
4
o - " " '. $#" ( $% ,%
#'!", the investment limit in the case of tiny
units was enhanced to Rs  lakh, of a small scale
units to Rs 0 lakh and of ancillaries to Rs 5
lakh
5 A scheme for -!'#* -!(( " ,3 of essential
raw materials for the $% ,% c#'!" was
introduced for operation through the Small
ndustries Development Corporations in the States
and the National Small ndustries Corporation in
the Centre
 ndustrial processes and technologies aimed
at "$!$ !"%" # ( #*/ or the
4 "%" # ( %"#%".  !, (
#*/ would be given ,% %"%#,,
including finance on concessional terms
c#'!"% ,/"%"$#" (
:!/1
t was based on the ndustrial Policy Resolution of 5
i) Optimum utilisation of installed capacity;
ii) Maximum production and achieving higher productivity;
iii) Higher employment generation;
iv) Correction of regional imbalances;
v) Strengthening of the agricultural base through agro based
industries and promotion of optimum inter-sectoral
relationship;
vi) Promotion of export-oriented industries;
vii) Promotion of , # $, ('%$
through equitable spread of investment
and dispersal of returns;
viii)
#!$  "," # against high
prices and bad quality
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:
75
 Government is pledged to launching a
#.* %"' "!** (   ,% %#' , # $,
;!",, to end poverty and unemployment and to
build a modern, democratic, socialist, prosperous
and forward-looking ndia
 Such a society can be built if ndia grows as %"
( " ) ' , # $/ and # " #  %" #
3 hile Government will continue to follow the
policy of (<%#,, there would be greater
emphasis placed on building up our ability to %/
(  $ " through our own foreign exchange
earnings
4 Government is also committed to '. $#"
and !"%" # of indigenous capabilities in
",#  */ %#' $%#!(%,"!#* as well as its
upgradation to world standards
5 Government will continue to pursue a sound
policy framework encompassing encouragement
of #"#! '. $#" ( #'*# !
",#  */ through investment in research and
development, bringing in new technology,
dismantling of the regulatory system, development
of the capital markets and increasing
competitiveness for the benefit of the common
man

he spread of #'!"%%" # " -%,3)%'
%% of the country will be actively promoted
through appropriate incentives, institutions and
infrastructure investments
Ô Government will provide #%#,' ! " "
" $%<,% ,"  so that it flourishes in an
environment of economic efficiency and
continuous technological upgradation
8  *# #."$#" %#' ",#  */
, %- %" # will be welcomed to obtain higher
technology, to increase exports and to expand the
production base
 Government will endeavour to %-  "
$ #  / of any sector or any individual
enterprise in any field of manufacture, 4," #
"%"*,  $"%/ , #'%" # and open all
manufacturing activity to competition
0
he Government will ensure that the !-,
,"  plays its rightful role in the evolving
socioeconomic scenario of the country
Government will ensure that the !-, ,"  
!# # -!# # as envisaged in the
ndustrial Policy Resolution of 5 and would
, #"#! " ## .%" %#' %' # "%"*, %%
( #%" #% $ "%#,5
 Government will fully protect the #""
( %- !, enhance their welfare and equip
them in all respects to deal with the
inevitability of technological change
 %- ! will be made an 9!% %"# in
progress and prosperity
3 = 3> %",%" # in management
will be promoted
4 = 3 , %". will be encouraged to
%",%" in packages designed to turn around
,3 , $%#
5
he $%;  -;,". of the new industrial
policy package will be to build on the gains
already made, correct the distortions or
weaknesses that may have crept in, maintain a
sustained growth in productivity and gainful
employment and attain international
competitiveness
 Need to . " #. #$#" and
ensure the efficient use of available
resources
Ô Government¶s policy will be continuity
with change
8 n pursuit of the above objectives, Government
have decided to take a series of initiatives in respect
of the policies relating to the following areas
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