Industries refer to units that are engaged in the business activity of converting raw materials or semi-finished goods into finished or final goods, which are then made available to the final consumers. For any economy to flourish industrialization is very essential. Industries act as major accelerators of economic development in a country. There are many advantages of having a good industrial system functioning in a country. Especially in a developing country like India, Industries are of utmost importance. They provide the vast population with better employment opportunities, better standard of living, better supply of goods and services and so on. However, in a vast country like India it is important that the functioning of these industries be monitored. Here comes the need for a strong and efficient Industrial Policy. In order to see to that the industries function in the desired manner it is essential that these industries be kept under observation and also the government works on the functioning of these industries. “Industrial Policy is an important document which lays a wide canvas and sets the tone for implementing promotional and regulatory roles of the government.” - K. Aswathappa Thus, it is clear from the above definition that an Industrial Policy lays down a definite framework that governs and monitors the functioning of the industries in a country. It is essential to understand the importance or reasons behind having a strong and efficient Industrial Policy in any country: a.Balanced Development of industries
b.Meet National Priorities
c.Regulate Expansion of Private Industries
d.Prevent Concentration of Wealth in Few Hands
e.Monitor Foreign Trade
Three Major Industrial Policies in India:
There have been three major industrial policies in the Indian Industrial context. The first was Industrial Policy Resolution of 1948. This resolution soon after the independence focused on accepting the role of both...