Industrial Development during Five Year Plans in India
Consequent upon the massive investments made during the planning period, industrial development made great strides after independence. The index number of industrial production (base year 1970 as 100) went up from 54.8 in 1951 to 150.1 in 1978-79. Production of finished steel increased nearly 6 times and that of nitrogenous fertilizers by about 240 times during the period. An important feature of industrial growth in the country after Independence has been observed in the sporadic expansion of the public sector undertakings. While in 1951 there were only 5 public sector undertakings with an investment of Rs. 29 crores, by 1992 their number increased to 246 with an investment of Rs. 135,871 crores. A large number of diverse products such as steel, coal, aluminum, copper, heavy and light engineering products, fertilisers, basic chemicals, drugs, minerals, petroleum products, locomotives, aircrafts, and ships are characteristic features of this sector. The role of public sector comprised 96.15 per cent, 90.09 per cent. 71.97 per cent, 55.97 per cent and 25 per cent share of the total investment in communication, electricity generation, mining and quarrying, transport and manufacturing industries in 1992-93. The share of manufacturing sector in gross domestic product has increased from 1 1.88 per cent in 1951-56 to 16.95 per cent in 1966-71 and 21.50 per cent in 1991-92. After Fifth Five Year Plan the strategy was adopted to lift the economy slowly from agriculture based to modern manufacturing and advance services. As a result, the manufacturing sector grew with its share being above 20 per cent in GDP while agricultural sector's share declined from 54.91 percent in 1951- 56 to 32.82 per cent in 1985-90 and 27.70 per cent in 1991-92. The Industrial growth has not been uniform since 1951. After a steady growth of about 8 percent during the initial period of 14 years (195 1 to 1965), there was fluctuating trend...
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