BBA 1st Year Business Environment Industrial Policy Short Question Answer

Salient Features of Industrial Policy, 1980

1. Effective Management of Public Sector: Efficiency of public sector units would be received so that these units may be run on profitable basis and generate higher employment opportunities.

2. Concept of Economic Federalism: All the best efforts would be made to integrate industrial development and promote the concept of economic federalism. A few plants would be set up in each industrially backward district so that ancillary and small and cottage units maybe established in the district.

3. Re-defining Small Units : Small scale units have been redefined to boost their development. Limit of investment has increased from 1 lakh to 2 lakh for tiny units, from 10 lakhs to 20 lakhs for small scale units (present limit3 crore) and from 15 lakhs to ‘ 25 lakhs for ancillary units.

4. Promoting Rural Industries : Handlooms, handicrafts, khadi and other village industries would get greater attention so that the rate of growth in rural areas may be accelerated and higher employment and higher.per capita income may be generated for villagers.

5. Promoting Regional and Sect oral Balance: New industrial units would be set up in industrially backward areas and sectors.

6. Increase in Production, Productivity and Employment Opportunities: Industrialization would be encouraged in the manner that it may help in increasing the production and productivity on the one hand and generate more employment opportunities on the other.

7. Encouraging Latest Technology, Research and Development: All the best efforts would be made to develop and expand the facilities of research and development in the country so that the quality and quantity of production may be improved. Latest technology would be adopted and if it is not available in the country, it would be imported.

8. Simplifying Licensing System : Licensing system would be simplified so that the license for setting up a new unit or expanding an existing unit may be granted at the earliest. A data bank would be set up to get up to date information of units.

9. Approach towards Sick Units: Government would try to revive sick units by granting them financial assistance or by allowing their mergers with sound units. Government may also acquire these units in case of need.

10. Industrial Relations : Government would concentrate upon labour welfare and maintaining industrial peace. Best efforts would be made to coordinate labour, capital and management.

Q. 6. State the meaning and objectives of licensing policy in India.

Ans. Licensing Policy: Industrial licensing policy means a policy of the government under which a formal permission is to be obtained from government for the establishment of a new industrial or expansion of an existing unit.
Objectives of Licensing Policy in India

1. Regulation of industrial development, so that the development may be promoted in desired direction.

2. Allocation of productive resources according to the targets and preferences of economic planning.

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