Page 119 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes The Plan proposed to lay stress on the following:
1. Quick growth of core sector industries by providing high priority to steel, mineral oils,
non-ferrous metals, fertilisers, coal and machine building.

2. Development of industries which promise a quick diversification and growth of exports.
3. Enlarging the production of industries supplying mass consumption goods, namely, cloth,
drugs, edible oils and vanaspati, sugar, bicycles.
4. Restraint on the production of unnecessary goods, except for exports.

5. Development of small industries by reserving 124 items especially for them and by starting
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% in the industrial sector, the real annual industrial
growth rate was of the order of 5.3 per cent during 1974-75 to 1977-78-much under the target.

7.3.4 Industries in the Sixth Plan (1980-85)

You must be aware that the Sixth Plan (1980-85) intended to work within the total developmental
strategy particularly with relation to the objectives of structural diversification, modernisation
and self-dependence. The other elements of policy involved the following:

(a) To meet foreign exchange needs, export of engineering goods and industrial products, as
also project exports would be intensified.
(b) A judicious blend of allowing import of contemporary technology and promoting the
development of indigenous know-how via domestic research and development.
(c) New strategies for development of backward areas would be devised. The thrust would
be to execute a new model of development which would stop concentration of industry in
prevailing metropolitan areas.
A review of the progress of the industrial growth during the Sixth Plan discloses that as against
the target of 7% growth in industrial productions, the growth rate attained, however, was just
5.5 per cent. This was lower than the trend growth rate of 6 per cent observed in the previous
three decades.

7.3.5 Industries in the Seventh Plan (1985-90)

In consonance with the guiding principles of the Seventh Plan, viz., to attain growth with social
justice, and enhancing productivity, the goals of the development programmes in the industrial
sector were:
1. to make sure sufficient supply of wage goods and consumer articles of mass consumption
at reasonable prices and of acceptable quality;

2. to maximise the utilisation of the prevailing facilities through restructuring, enhanced
productivity and upgradation of technology;
3. to focus on development of industries;

4. with large domestic market and export potential to evolve as world leaders in them;
5. to usher in ‘sunrise’ industries with great growth potential and importance to our needs;
and
6. to emerge an integrated policy towards self-reliance in strategic fields and opening up of
avenues for employment of skilled and trained manpower.

114 LOVELY PROFESSIONAL UNIVERSITY