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Indian Economic Policy

Notes metals, fertilisers, petroleum and petro-chemicals, coal and iron ore.
The performance in industry was far short of even the modest targets set out in the Fourth Plan. On
an average, the growth rate in industry was around 5 per cent which was much below targeted
growth rate of 8 per cent envisaged in the Plan.
Industries in the Fifth Plan (1974-78)
Programmes of industrial development in the Fifth Plan were formulated keeping in view the objectives
of self-reliance and growth with social justice. The Plan proposed to lay emphasis on the following :
(i) Rapid growth of core sector industries by giving high priority to steel, non-ferrous metals,
fertilisers, mineral oils, coal and machine building.
(ii) Development of industries which promise a rapid diversification and growth of exports.
(iii) Enlarging the production of industries supplying mass consumption goods, viz., cloth, edible
oils and vanaspati, sugar, drugs, bicycles.
(iv) Restraint on the production of inessential goods, except for exports.
(v) Development of small industries by reserving 124 items exclusively for them and by initiating
an intensive programme for the development of ancillary industries as feeder industries to
large-scale units.
Against the targeted annual growth rate of 8.1 per cent in the industrial sector, the actual annual
industrial growth rate was of the order of 5.3 per cent during 1974-75 to 1977-78—much below the
target.
Industries in the Sixth Plan (1980-85)
The Sixth Plan (1980-85) intended to work within the overall developmental strategy particularly
with regard to the objectives of structural diversification, modernisation and self-reliance. The other
elements of policy included the following :
(a) To meet foreign exchange requirements, export of engineering goods and industrial products,
as also project exports would be stepped up.
(b) A judicious blend of permitting import of contemporary technology and promoting the
development of indigenous know-how through domestic research and development.
(c) New strategies for development of backward regions would be devised. The thrust would be to
implement a new model of development which would prevent concentration of industry in
existing metropolitan areas.
A review of the progress of the industrial growth during the Sixth Plan reveals that as against the
target of 7% growth in industrial productions, the growth rate achieved, however, was only 5.5 per
cent. This was lower than the trend growth rate of 6 percent witnessed in the earlier three decades.
Industries in the Seventh Plan (1985-90)

In consonance with the guiding principles of the Seventh Plan, viz., to achieve growth with social
justice, and improving productivity, the objectives of the development programmes in the industrial
sector were :
(i) to ensure adequate supply of wage goods and consumer articles of mass consumption at
reasonable prices and of acceptable quality;
(ii) to maximise the utilisation of the existing facilities through restructuring, improved productivity
and upgradation of technology;
(iii) to concentrate on development of industries with large domestic market and export potential
to emerge as world leaders in them;
(iv) to usher in ‘sunrise’ industries with high growth potential and relevance to our needs; and
(v) to evolve an integrated policy towards self-reliance in strategic fields and opening up of avenues
for employment of skilled and trained manpower.

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