This document provides an overview of industrialization in India from ancient times to the present. It discusses the key periods of industrial development including the ancient and Mughal eras, the impact of British colonial rule, and policies and plans for industrialization after independence under Nehru, Indira Gandhi, and subsequent governments. Major industries discussed include cotton, iron and steel, mining, railways, and policies around licensing, public sector involvement, and liberalization in the post-1991 era.
2. INDUSTRIALIZATION IN
INDIA
The Indian business scenario in past
The phase of growth and development of Indian
industry
Post independence industrialization
Gandhian concept of industrialization
3. Ancient Period
(Upto 750 AD)
India had developed scientific and elaborate system of
governance and managing people
Trade practiced under the barter system
Western coast hub of commercial activities in 6th century
BC
India established link with other countries on commercial
terms
Guild system to protect the interest of traders artisans and
producers
4. Period
(750 to 1757
AD)
Growth of towns and a
marked expansion of
craft production
Trade & commerce
flourished in & outside
the country
Metallic currency
introduced for the first
time
5. Trade Routes
Construction of well
connected trade routes
through roadways
Network indicated
involvement of deep
interiors in exchange of
commodities
Connectivity developed by
the way of ports
6. BUSINESS
Traders came from all
over the world
Use of indigenous financial
instrument “hundi”
No. of important industries
developed such as textiles,
metal work, stone work, sugar etc.
7. Establishment of Karkhanas
Establishment of royal karkhanas
Generation of employment through
“karkhanas”
No market ~ Dependency of public
authority
8. Registration of Traders
1. Registration in employers court with
details of the nature and volume of
business
2. Strict laws to regulate and check unfair
trade practices
Use of “Public Distribution System”
9. Artisans in Mughal India
Two types :
Bazaar artisans
independent
Not employee of rich and powerful
Lowly skilled
Poor
Exploited by merchants
Super skilled artisan
Employee of the karkhanas
Eminent in his art
11. Industrialization in Pre-Independence
Period
Britisher’s saw India as:
Vast land
Large population
Supplier of raw material
Market of British industrial production
No increase in India’s per capita
income from 1757-1947
12. Artisans panchayats
Present in every craft towns of gangetic plains
Karkhanadars played multiple roles:
• To avoid fraud
• Maintaining coordination
Merchant communities:
• Community was a collection of families
connected both socially and economically.
• Business communities were hierarchical
organization.
• Followed certain recognizable rules & pattern of
seniority.
13. Industrial Revolution &
Industrialization
(18th-19th Century )
Major market for all manufactured goods
produced by industrial Britain.
Supplier of raw materials.
Exploitation of workers because of cheap
labor .
Acts were passed :
• The Factories Act ,1948
• The Trade Union Act ,1926
• The Mines Act ,1952
14. Coal & Mines &
Mining
First real commercial scale mining of
coal commenced in 1814.
15000 tons of coal mined annually by
1831.
Production of coal increased on demand
by railways , steam ships and other
industries.
15. Paper
Bally mills established in Hooghly in 1870
followed few other mills.
Plantation industries
One of biggest contribution of the British .
Indigo , tea , rubber developed.
Establishment of Tea Plantation in Assam in
1834.
East India company gave inducements for
growing coffee by granting land on long lease.
16. Iron & steel
First steel mill with modern production
methods established in 1808.
The govt. made attempts to establish
the iron and steel company industry.
17. Cotton
industries:
This industry suffered the most.
Indian handloom replaced by cheap
cloth from Britain.
First cotton mill started in Bombay in
1854.
By the end of 19th century the number of
mills rose to 193.
18. Railways
Revolutionalized the Indian transport
system
Opened new frontiers for business at
distant location.
Movement of people and goods fostered
the growth of every business.
Post and Telegraph
Helped in breaking the barriers of time and
distance.
Calcutta , Bombay , Madras and Peshawar
well all connected through telegraph .
19. Industrialization during the
beginning of 20th century (till
1947)
Swadeshi movement 1905 gave a boost to Indian industries.
JRD Tata established the first iron & steel industry in 1911 at
Jamshedpur.
Growth of trade and auxiliaries to trade such as banking ,
insurance , warehousing , communication etc.
In 1944 , industrialists and technocrats a plan 15 year
investment plan for India called the “Bombay plan”.
21. Nehru’s Industriial policy
Believe that a powerful state with centralized economy was essential.
First 5 year plan was programmed of public expenditure.
Second 5 year plan reflected Nehru’s vision of plan economic development and fabian
socialism.
Socialistic pattern of society was key objective of social and economic policy.
The second 5 year plan was moderate success.
It was aborted in 1957 when foreign exchange crisis engulfed the country.
Third plan (1961-65) reflected disconnect between target and performance ,
requirement and resources.
Public policy in this era had set emotion a more or less stagnant colonial
economy .
22. Indira Gandhi’s Era (1960-70)
During her regime ,two major shifts took place.
Neglect of agriculture was reversed.
In 1967, Industrial Licensing Policy Inquiry
Committee
In 1969, Monopolies and Restrictive Trade
Practices (MRTP) Act introduced.
In 1970, New Industrial Policy was setup that
confined the role of large business houses and
foreign companies to core heavy sectors.
23. The Janta Rule
This government had lesser success in achieving industrial reforms
Launched the Sixth Five-Year Plan, aiming to boost agricultural
production and rural industries
Seeking to promote economic self-reliance and indigenous
industries, the government required multi-national corporations to
go into partnership with Indian corporations
The legalisation of strikes and re-empowerment of trade unions
affected business efficiency and economic production.
24. Genesis
• Balance of payment crisis
• License-permit-quota Raj
• To unshackle the industrial sector
from administrative and legal control
• To make industry competitive by
increasing efficiency
25. Implementation of NIP 1991
Contraction of public sector
Liberlaisation of industrial licensing
policy
Introduction of Industrial Entrepreneurs
Memorandum for industries not requiring
compulsory licensing
Liberalization of location policy
Five year tax holidays to power
generation industries
26. Divestment of PSUs
Encouragement to Foreign Investment
Permission to raise capital from foreign
markets
MRTP Act replaced with Competition Act