Public Sector’s Role in Industrial Development

The public sector played a crucial role in India’s industrial development in the post-independence era. The government recognized the importance of a strong public sector to accelerate economic growth and reduce regional disparities.

Public Sector Undertakings (PSUs) were established to provide essential services, promote national interest, and ensure socio-economic development.

Evolution of Industrial Policy

India’s industrial policy has undergone significant changes since independence. From a mixed economy to a liberalized economy, the government’s role has evolved from regulation to facilitation.

Early Years (1947-1960s)

The early years of independent India saw the establishment of PSUs in strategic sectors like steel, power, and heavy industries. The government aimed to promote self-reliance and reduce dependence on foreign imports. The Industrial Policy Resolution (1948) and the Public Sector Undertakings (PSUs) Act (1973) laid the foundation for the growth of the public sector.

Liberalization and Privatization (1990s-2000s)

In the 1990s, India embarked on a path of economic liberalization. The government privatized several PSUs, introduced new policies, and removed regulatory barriers to encourage private investment and competition. This period saw significant growth in the IT sector, pharmaceuticals, and automotive industries.

Recent Developments (2010s-present)

In recent years, the Indian government has focused on promoting ‘Make in India’, ‘Start-up India’, and ‘Digital India’ initiatives. These initiatives aim to attract foreign investment, promote entrepreneurship, and boost exports. The government has also implemented policies to promote domestic manufacturing, such as the ‘Production Linked Incentive (PLI) Scheme’ and the ‘National Infrastructure Pipeline’.