Page 208 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Indian Economic Policy

Notes The basic fact was that the rate of industrial had been slowing down. During the 7th Plan (1985-90)
growth rate had picked up to an average of over 8 per annum and in the Eighth Plan, it had declined
to cent per annum.
During the Ninth Plan (1997-2001-02), industry growth slumped to 4.6 per cent per annum, but during
10th Plan (2001-02 to 2006-07), it picked up significant to 8.2 per cent per annum. This is a healthy
development.
Growth of Infrastructure
The rapid pace of industrial growth and the development of productive capacity has been marked by
remarkable, though still inadequate, expansion of infrastructural facilities in the country with
expansion and modernisation of coal which is India’s primary fuel source, by more than three-fold
and notable success in the exploration of oil and gas both on and off-shore. The Sixth Plan summed
up the success in infrastructure admirably. An efficient complex of refineries, pipelines, storage and
distribution has been developed and India has entered the petrochemical age. A large infra-structure
has been built to sustain this sub-continental economy- a network of irrigation, storage works and
canals, hydro and thermal power generation, regional power grids, a largely electrified and dieselised
railway system, national and state highways on which a rapidly growing road transport fleet can
operate and telecommunications system covering most urban centres and linking India with the
world. The development of modern industry as well as of agriculture has stimulated the growth of
banking, insurance and commerce and required matching expansion and modernisation of ports,
shipping and internal and external air services. The major beneficiaries of all these services, as pointed
out all however, have been the wealthier sections of the population both in urban and rural areas.
Science and Technology
Significant progress has been recorded in the science and technology. India now ranks third in the
respect of technological talent and manpower. The scientists and technologists are working in many
and the frontiers of today’s knowledge, as in agriculture industry, in the development of nuclear
power and of space technology for communications and development. For further industrial and
scientific’ and with growing competence in adaptive research development, we need only a selective
import of technology. The country has been able to train a cadre of technology manpower which can
handle cement factories, chemicals fertiliser units, oil refineries, power houses, steel locomotive
factories, engineering industries, etc. than a lakh and half degree and diploma holders are out by the
technical institutions. Similarly in plant and sending brilliant young men and women training in top
skills has helped to generate skilled many and thus reduce dependence on foreign technician experts.
However, small and cottage industries, rural and activities have not received the research development
support that they required.
Inadequacies of the Programme Industrialisation
Without under-estimating the achievements process of industrial expansion initiated during the plan
era, it may be emphasised that much of the industry growth is only apparent and not real. Our
reasons for are as under :
Firstly, the share of industry income in national in 1948-49 was 17 per cent. In 1996-97, it was around
per cent—an increase of just 4 per cent in 50 years in terms of contribution of national product,
manufacturing industry sector continues to be low. In of the developed nations, this share is between
30 per cent.
Secondly, the process of industrialisation has been able to make a dent on the problem of unemployment.
The high capital intensity of public sector im generated a very small amount of employment, For
employment absorbed only 2 per cent of the labour Professor Gunnar Mydral studied the spread
effect industrialisation on employment and also its back effects in terms of unemployment on the
traditional. After a careful examination of the situation, My observed : “The employment effects of
industrialise cannot be expected to be very large for several decade ahead, that is, until the region is
much more industrial. For a considerable time the net employment effects even be negative. This

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