Critically examine the growth trends in Industrial Development in the country since 1951, pointing out factors responsible for these trends.
Published: February 6, 2016
Industrial growth during the planning era can be divided into four phases:
First Phase of High Growth was from 1951-66 for the first three five year plans. Investment in heavy industries was the key factor and the phase had growth of 9 percent.
Second Phase of Industrial Retrogression was the period from 1966-80 during fourth and fifth year plan. The average Industrial growth rate remained 4.1% reason may be back to back wars of 1965 and 1971 and too many drought seasons.
Third Phase of Industrial Recovery was from 1980-91.The average growth remained between 6.4 to 8.3%.The change in consumer pattern durable were called the “forefront of growth” during this phase.
Fourth phase of Industrial Reforms started with the New Industrial Policy 1991.The policy of liberalisation globalisation and privatisation created a new path for industrial development especially through manufacturing and service sector.
Model Questions Category: 075 - Changes in Industrial Policy and Their Effects On Industrial Growth