Management Notes

Reference Notes for Management

The policy which stressed the role of cottage and small-scale industries for balanced industrial development of the country is ______________.

The policy which stressed the role of cottage and small-scale industries for balanced industrial development of the country is ______________.

 Options:

A. IPR 1940.
B. IPR 1948.
C. IPR 1956.
D. IPR 1977.

The Correct Answer Is:

B. IPR 1948.

The policy that stressed the role of cottage and small-scale industries for balanced industrial development of the country is the Industrial Policy Resolution (IPR) of 1948. This policy was a significant milestone in India’s industrial development and played a crucial role in shaping the economic landscape of the nation.

Explanation of Why IPR 1948 is the Correct Answer:

The Industrial Policy Resolution of 1948 was a visionary document that aimed to achieve balanced industrial development in India.

It recognized the importance of small-scale and cottage industries in creating employment opportunities, reducing regional disparities, and promoting inclusive growth.

i. Emphasis on Cottage and Small-Scale Industries:

One of the key features of the IPR 1948 was its emphasis on the development of cottage and small-scale industries. It recognized the potential of these sectors in generating employment, particularly in rural areas, and contributing to the overall industrial growth of the country.

ii. Promotion of Indigenous Industries:

IPR 1948 recognized the need to promote indigenous industries, which included small-scale enterprises. This was essential for reducing dependency on foreign goods and technologies, and for building a self-reliant industrial base.

iii. Regional Balance:

The policy aimed to achieve a balanced industrial development across different regions of India. It sought to prevent the concentration of industries in specific areas and encouraged the establishment of industries in underdeveloped regions.

iv. Role in Socio-Economic Development:

By focusing on cottage and small-scale industries, IPR 1948 contributed significantly to socio-economic development. It empowered local communities, provided livelihood opportunities, and improved the standard of living for a large section of the population.

v. Influence on Subsequent Policies:

The principles outlined in IPR 1948 had a lasting impact on India’s industrial policies. Subsequent policies and plans continued to recognize the importance of small-scale and cottage industries in the country’s economic development.

Explanation of Why Other Options are Incorrect:

A. IPR 1940:

The option A, IPR 1940, is incorrect for several reasons. In 1940, India was still under British colonial rule. Policies related to industrial development were largely determined by the British government, and there was no comprehensive Industrial Policy Resolution formulated by Indian authorities.

The focus during this period was primarily on achieving political autonomy rather than formulating economic policies. The formulation of comprehensive industrial policies was not within the purview of Indian authorities at that time.

C. IPR 1956:

The Industrial Policy Resolution of 1956 was indeed an important policy in the context of India’s industrial development. However, it differed significantly from IPR 1948. The IPR of 1956 placed a strong emphasis on the public sector and called for the establishment of large industries, particularly in sectors considered to be of strategic importance.

Its primary objective was to promote socialism by regulating industrial undertakings and reducing the concentration of economic power in the hands of a few, rather than focusing primarily on the development of cottage and small-scale industries.

D. IPR 1977:

The Industrial Policy Resolution of 1977 represented a significant departure from earlier policies. It marked a shift towards a more liberalized economic framework, aiming to encourage private sector participation in various industries. This was in contrast to the earlier policies which focused on public sector dominance.

The 1977 policy sought to reduce the role of the state in industrial activities. It introduced measures to dilute the system of industrial licensing, making it easier for private enterprises to establish and operate.

It also placed a greater emphasis on efficiency and competitiveness, encouraging technological modernization and global competitiveness, which differed from the earlier policies that emphasized social and regional considerations.

In summary, the Industrial Policy Resolution of 1948 stands out as a pivotal policy that recognized the vital role of cottage and small-scale industries in India’s industrial development. Its emphasis on balanced growth, regional development, and indigenous industries made it a cornerstone in shaping India’s economic landscape.

This policy laid the foundation for subsequent industrial policies and played a crucial role in the country’s journey towards economic self-reliance

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