Industrial Relations
1.1 THE INDIAN ECONOMY
The history of Indian Economy and its labour force in the post independence period can be divided into two phases:
i. the Import Substitution/ Plan Era (1947 to 1991) ii. the era of Economic liberalization (1992 onwards)
1.1.1 Import Substitution/ Plan Era (1947 to 1991):
For three of the five decades (1950-80), India steadily grew at the so-called “Hindu rate of growth” of three and a half percent. During the remaining period, it grew at rates between 5 and 6 percent.
Indian economic policy during this period was mainly influenced by the colonial experience (which was seen by Indian leaders as exploitative in nature). This economic policy tended towards:
– protectionism, with a strong emphasis on import substitution,
– industrialization under state monitoring,
– state intervention at the micro level in all businesses especially in labour and financial markets,
– a large public sector,
– business regulation, and
– central planning.
Five-Year Plans of India resembled central planning in the Soviet Union. Steel, mining, machine tools, water, telecommunications, insurance, and electrical plants, among other industries, were effectively nationalized in the mid-1950s. Elaborate licences, regulations and the accompanying red tape, commonly referred to as Licence Raj, were required to set up business in India between 1947 and 1990.
The first seven Five year plans focused on the following objectives vis-à-vis labour:
– improving the conditions of labour and welfare of the workers
– prevention and settlement of industrial disputes to prevent disruption that could adversely affect realization of plan goals
– controlling industrial growth to prevent concentration of economic power in the hands of a few and reducing income disparities among individuals
– worker’s education
– worker’s participation in management
1.1.2 Era of Economic liberalization (1992 onwards)
Starting with the July 1991 Budget, there was a clear
The history of Indian Economy and its labour force in the post independence period can be divided into two phases:
i. the Import Substitution/ Plan Era (1947 to 1991) ii. the era of Economic liberalization (1992 onwards)
1.1.1 Import Substitution/ Plan Era (1947 to 1991):
For three of the five decades (1950-80), India steadily grew at the so-called “Hindu rate of growth” of three and a half percent. During the remaining period, it grew at rates between 5 and 6 percent.
Indian economic policy during this period was mainly influenced by the colonial experience (which was seen by Indian leaders as exploitative in nature). This economic policy tended towards:
– protectionism, with a strong emphasis on import substitution,
– industrialization under state monitoring,
– state intervention at the micro level in all businesses especially in labour and financial markets,
– a large public sector,
– business regulation, and
– central planning.
Five-Year Plans of India resembled central planning in the Soviet Union. Steel, mining, machine tools, water, telecommunications, insurance, and electrical plants, among other industries, were effectively nationalized in the mid-1950s. Elaborate licences, regulations and the accompanying red tape, commonly referred to as Licence Raj, were required to set up business in India between 1947 and 1990.
The first seven Five year plans focused on the following objectives vis-à-vis labour:
– improving the conditions of labour and welfare of the workers
– prevention and settlement of industrial disputes to prevent disruption that could adversely affect realization of plan goals
– controlling industrial growth to prevent concentration of economic power in the hands of a few and reducing income disparities among individuals
– worker’s education
– worker’s participation in management
1.1.2 Era of Economic liberalization (1992 onwards)
Starting with the July 1991 Budget, there was a clear