India's Industrial Development
Industrial Development Since Independence.
1. The British regarded India as source of supply of raw materials and market for British manufacturers and hence, at the time of Independence, India was industrially an underdeveloped economy.
2. The poor industrial sector was domintaed by consumer goods industries like cotton textile, jute, sugar, salt, paper, soap, etc.
3. Industries producing intermediate goods like steel, coal, cement, alcohol, power, non-ferrous metals were poorly established in terms of productive capacity.
4. Capital goods industries hardly made their presence felt.
5. In the post independence period, India embarked upon industrial development under the five year plans
GROWTH IN PRE REFORM PERIOD (1947-1990)
6. The major changes during the pre-reform period can be analyzed by diving the period into three phases:
A. Phase 1 (1951-1965) Establishing Industrial Base
During the first five year plan, which was based on Harrod Domar's model, only 2.8 percent of the total investment was made in 'Industry and Minerals' as the agricultural sector was hit hardest by the partition of India and needed more investment.
Industries like Indian Telephones and Indian Cables were set up. Penicillin factories were established.
During the second five year plan, which was based on Mahalnobis model, a whooping 20.1% of the total investment was made in Industry and Minerals.
The second five year plan focused on establishing basic and capital goods industries on a large scale.
Three major steel plans of one million tonnes capacity were started at Bhillai, Durgapur and Rourkela.
The third five year plan focused on expansion of heavy industries and also invested 20.1% of the total investment in Industry and Minerals.
The average growth rate of industrial SECTOR during this phase was more than 7% per annum and of basic and heavy(capital goods) industries was more than 10% per annum.
B. Phase 2 (1966-1974) Slow growth
The average growth of industrial sector during
1. The British regarded India as source of supply of raw materials and market for British manufacturers and hence, at the time of Independence, India was industrially an underdeveloped economy.
2. The poor industrial sector was domintaed by consumer goods industries like cotton textile, jute, sugar, salt, paper, soap, etc.
3. Industries producing intermediate goods like steel, coal, cement, alcohol, power, non-ferrous metals were poorly established in terms of productive capacity.
4. Capital goods industries hardly made their presence felt.
5. In the post independence period, India embarked upon industrial development under the five year plans
GROWTH IN PRE REFORM PERIOD (1947-1990)
6. The major changes during the pre-reform period can be analyzed by diving the period into three phases:
A. Phase 1 (1951-1965) Establishing Industrial Base
During the first five year plan, which was based on Harrod Domar's model, only 2.8 percent of the total investment was made in 'Industry and Minerals' as the agricultural sector was hit hardest by the partition of India and needed more investment.
Industries like Indian Telephones and Indian Cables were set up. Penicillin factories were established.
During the second five year plan, which was based on Mahalnobis model, a whooping 20.1% of the total investment was made in Industry and Minerals.
The second five year plan focused on establishing basic and capital goods industries on a large scale.
Three major steel plans of one million tonnes capacity were started at Bhillai, Durgapur and Rourkela.
The third five year plan focused on expansion of heavy industries and also invested 20.1% of the total investment in Industry and Minerals.
The average growth rate of industrial SECTOR during this phase was more than 7% per annum and of basic and heavy(capital goods) industries was more than 10% per annum.
B. Phase 2 (1966-1974) Slow growth
The average growth of industrial sector during