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 Pattern Of Industrial Development Since Independence


At the time of Independence, India did not have a balance and well-developed industrial structure. These were too many large and small units but the number of medium size units was too small. Besides this, there was a preponderance of consumer goods industries, compared with capital goods industries. As a result, the country had to depend upon other countries for importing capital goods. The share of industrial sector in the GDP has slowly increase from 12 percent in 1950-51 to 26 per cent in 2009-2010. The following important changes have taken place:


Strengthening Of Infrastructure:

The various sectors of the economy cannot develop in the absence of basis infrastructure like power transport and communication, banking and finance, qualified and skilled human resources etc. Therefore, after independence, massive efforts were made to develop· these basic facilities in Indian Industrial and Institution related with these activities were given high priority.


Building Up Of Capital Goods Industries:

Deliberate efforts have been made, especially since the second plan (1956-61) based on Mahalnobis model, to create a developed a strong capital base of the economy. And for this, heavy investments have been made in heavy machine building, machine tools, heavy electrical, and chemicals and other capital goods industries. A wide range of sophisticated and high-tech. Goods is being produced in India.


Growth Of Elite, Non-Essential Consumer Goods Industries:

Man-made fibers, fine varieties of textiles, beverage, cigarettes, motor cars, motor cycles, scooters, refrigerators, TVs, air-conditioners, fans heartaches and cosmetics etc. recorded significant growth after Independence especially since 1980. The performance of essential consumer good industrial, which catered to the needs of masses, however, was not that encouraging. These include, cotton textiles, sugar, kerosene, vanaspati, tea etc. As a consequence, there have been frequent shortfalls in their production, which have pushed up their prices continuously.

Expansion Of Public Sector:

Before Independence, private sector dominated the industrial scene. After Independence public sector has developed considerably. This will be clear from the fact that in the first plan we had just 5 public sector units with a total capital of Rs.30 crore. Now, we have 249central public sector units with a total capital of more than Rs. 5,80,000 crore. Out of 249 central Public Sector 158 are making profits.Their net profit stood at 1,08,000 crore in 2009-2010.The net loss of loss making enterprises(59) on the other hand stood at 14600 cr.


Diversification Of Private Sector:

The capacity and strength of the private sector has grown considerable since independence. There has been not only noticeable growth of the small-scale sector but also the dominance and strength of large and monopoly business houses have increased substantially. Thus, there has been an increasing concentration of economic power in a few large business houses in the economy.

Research And Development:

Remarkable progress has been achieved on science and technology front. Many research and development centres have been set up under the CSIR (Council of Scientific and Industrial Research). R and D facilities have also been installed in public and private sector units. There has been a conspicuous infusion of foreign technology into the industrial sector through foreign collaborations.

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