Question

Discuss any two salient features of the Indian industrial sector during the period of 1950-1990.

Hint:

Before 1991, India's industrial sector was government-dominated, focusing on self-reliance and planned growth.

Answer 1

Between 1950 and 1990, India followed a planned industrial policy with a mixed economy model, giving importance to both public and private sectors. Two Key Features:

1. Dominance of the Public Sector:
- The government played a leading role in industrial development, especially in heavy industries, infrastructure, and basic goods.
- Public sector enterprises (PSUs) like BHEL, SAIL, and ONGC were established to promote self-reliance.

2. Industrial Licensing Policy (License Raj):
- Industrial growth was regulated by the Industrial Policy Resolution (IPR) of 1956, which required businesses to obtain licenses before starting production.
- This controlled private sector expansion, limiting competition but ensuring government oversight in key industries.

Conclusion: The industrial sector (1950-1990) was heavily state-controlled, focusing on self-sufficiency, but was later reformed under the 1991 liberalization policies.