The development of backbone/framework is a prerequisite for industrialisation in any country. Before independence, the fundamental infrastructure was not developed and hence, industrialisation advanced at a very slow pace. The process of industrialisation cannot be maintained without enough transportation and communication facilities, energy and fuel, and basic and heavy industries. The private sector did not show any initiative to invest in heavy industries or develop it in any manner. They did not have trained personnel or Funds to straight away establish heavy industries which were the necessity of the economy. Only the government could muster huge capital, harmonize industrial construction and train technicians and labour force. Rail, road, sea and air transport was the accountability of the government, and their development has contributed to the pace of industrialisation and ensured future economic growth. The public sector enterprises were to function in certain spheres. Investments were to be made to:
Give infrastructure to the core sector, which needs a massive capital investment, complicated and improved technology, large and effective organisation structures like steel plants, civil aviation, power generation plants, railways, coal petroleum, state trading, etc
Give a lead in investment to the core sector where private sector undertakings are not operating in the desired direction, like pharmaceuticals, fertilizers, petro-chemicals, newsprint, medium and heavy engineering
Give direction to future investments like textiles, project management, consultancies, hotels, automobiles, etc.
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