Process of Industrialization in India
PROCESS OF INDUSTRIALIZATION
IN INDIA
Meaning of Industrialization
The term "industry" refers mainly to manufacturing activity. Agriculture, mining, and most other services are excluded from it. The term "industrialization” literally means the growth of manufacturing industry. It is thus a part of the much broader process of economic development which involves the raising of standard of living, through a steady increase in the efficiency of factors of production. India is a developing country. Economic development here must basically mean raising the productivity of agricultural workers. After a certain stage of development, however, it may become more profitable to transfer the surplus labor to their gainful employments as manufacturing.
Indian Industrialization
The industrial policy of free India was first announced in 1948. This policy envisaged a mixed economy with an overall responsibility of the Government for the planned development of industries and their regulations in national interest. It stated the right of the state to acquire an undertaking. The public interest, and reserved an appropriate sphere for private enterprise. According to this policy Indian industries were classified into three groups.
1. The first category included arms and ammunitions, atomic energy, river valley projects, and the railways. There were to be directly under the management of the state.
2. The second category included coal, iron and steel, aircraft, telephones, telegraphs, wireless, shipbuilding and mineral oils which were also to be the responsibility of the state. The private undertaking in these industries were to, however, continue for at least ten years.
3. The third category included the remaining industries, which were to be developed by private enterprise.
History of Industrialization in India
(1) 1850- 1874
The first industrial undertaking was established in India only after the first railways had been constructed in 1851. The
IN INDIA
Meaning of Industrialization
The term "industry" refers mainly to manufacturing activity. Agriculture, mining, and most other services are excluded from it. The term "industrialization” literally means the growth of manufacturing industry. It is thus a part of the much broader process of economic development which involves the raising of standard of living, through a steady increase in the efficiency of factors of production. India is a developing country. Economic development here must basically mean raising the productivity of agricultural workers. After a certain stage of development, however, it may become more profitable to transfer the surplus labor to their gainful employments as manufacturing.
Indian Industrialization
The industrial policy of free India was first announced in 1948. This policy envisaged a mixed economy with an overall responsibility of the Government for the planned development of industries and their regulations in national interest. It stated the right of the state to acquire an undertaking. The public interest, and reserved an appropriate sphere for private enterprise. According to this policy Indian industries were classified into three groups.
1. The first category included arms and ammunitions, atomic energy, river valley projects, and the railways. There were to be directly under the management of the state.
2. The second category included coal, iron and steel, aircraft, telephones, telegraphs, wireless, shipbuilding and mineral oils which were also to be the responsibility of the state. The private undertaking in these industries were to, however, continue for at least ten years.
3. The third category included the remaining industries, which were to be developed by private enterprise.
History of Industrialization in India
(1) 1850- 1874
The first industrial undertaking was established in India only after the first railways had been constructed in 1851. The