What was the condition of India's industrial sector in 1947?

Correct option is D

The correct answer is (d) Underdeveloped and focused on traditional industries

• In 1947, India's industrial sector was underdeveloped and largely based on traditional industries, such as textiles, handicrafts, and agriculture-based products.

• Industrial infrastructure was limited, and heavy industries like steel, mining, and machine tools were virtually absent.

• The sector was primarily domestic consumption-oriented, with minimal emphasis on exports or advanced industrial technologies. The British colonial rule had left the country with a largely agrarian economy, with only a few modern industries like jute and textiles.

Key Industrial Policies:

• Industrial Policy Resolution, 1948:

  • Encouraged private sector participation while developing public sector industries.

  • Focused on defense, heavy industries, and infrastructure.

  • Recognized the need for government intervention in guiding industrial growth.

• Industrial Policy Resolution, 1956:

  • Laid the foundation for planned economic development.

  • Focused on public sector enterprises in strategic sectors like steel, energy, and mining.

  • Categorized industries into:

    1. Public sector only.

    2. Public and private sectors.

    3. Private sector only.

• The Companies Act, 1956:

  • Regulated corporate entities in India, providing a framework for setting up and operating both public and private sector companies.

• New Industrial Policy, 1991:

  • Introduced under P.V. Narasimha Rao and Dr. Manmohan Singh.

  • Shifted towards liberalization, privatization, and globalization (LPG).

  • Aimed at opening the economy, reducing government control, and fostering private sector participation.

  • Key features: deregulation, privatization, and foreign investment.