Page 202 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Indian Economic Policy

Notes mining, the realised growth rate was barely 2.5 per cent. Similarly, achievement in manufacturing
was 5.3 per cent as against the target of 8.2 per cent and in electricity, the realised growth rate was 5.5
per cent as against the target of 9.3 per cent.
Ninth Plan allocated ` 69,972 crores for industry at 1996-97 prices, but the Tenth Plan reveals that the
total allocation to industry in the public sector was ` 44,695 crores at 2001-02 prices. If we revalue the
proposed allocation of the Ninth Plan of ` 69,972 at 1996-97 prices, it works out to be ` 88,730 crores
at 2001-02 prices. Comparing it with the public sector outlay of ` 44,695 crores, it implies that actual
outlay of the public sector was only 50.3 per cent of the proposed outlay. It was hoped that the private
sector would fill the gap, but this did not happen.
Reviewing the internal and external factors for the slowdown during the Ninth Plan, the Tenth Plan
states : “The industrial slowdown is widespread, covering all broad sectors, e.g. manufacturing,
electricity and mining and all end-use based groups such as capital goods, intermediate goods and
consumer goods (both durables and non-durables). The slowdown in domestic and global demand
appeared to be a major factor constraining industrial growth. Another major reason has been the
decline in investment, noticeably by the private sector.”
The difficulties caused by internal factors were aggravated by the slow growth of the world economy,
which resulted in a substantial slowdown in manufacturing exports. This implies that failure of the
Ninth Plan in industry can be attributed to the fall in public sector investment which was not
compensated by an upturn in private investment.
Self-Assessment

1. Choose the correct option:
(i) What was the Industrial Revolution?
(a) The industries set up after the French and American Revolutions
(b) The acceleration of technical and economic development that begun in Britain around
1750
(c) Where all the poorly paid industrial workers finally had enough and all stopped work
at once around 5.30 in the afternoon
(d) None of These
(ii) What was the ‘new’ industry dominated by?
(a) Machinery and Manufacturing
(b) Farms and Animals
(c) Selling and Servicing
(d) None of these
(iii) Which statement is the best summary of the economy in 1750?
(a) Heavy manufacturing, lots of pollution
(b) Water powered factories, some pollution
(c) Based on agriculture, growing and selling produce
(d) None of these
(iv) Why do some historians dislike the term ‘Industrial Revolution’?
(a) They feel ‘revolution’ means a dramatic change, but the real change was gradual and
varied
(b) They hate using the word revolution if America or France are not involved
(c) They feel ‘industrial’ is incorrect, implying some sense of mechanised change, where the
real change began much earlier
(d) None of these

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