. Explain the policy measures initiated for the promotion of rural industries in India over the period 1951- 1991.

Industrial Policy is the set of standards and measures set by the Government to evaluate the progress of the manufacturing sector that ultimately enhances economic growth and development of the country.

The government takes measures to encourage and improve the competitiveness and capabilities of various firms.

The various industrial policy introduced by the Indian government are as follows:

Industrial Policy Resolution, 1948

• It declared the Indian economy as Mixed Economy
• Small scale and cottage industries were given the importance
• The government restricted foreign investments

Industries were divided into 4 categories

• Exclusive monopoly of central government(arms and ammunitions, production of atomic energy and management of railways)
• New undertaking undertaken only by state(coal, iron and steel, aircraft manufacturing, ship building, telegraph, telephone etc.)
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