Industry is the organized sector of production of goods that yields wealth for the nation. Due to the industrial revolution of the 18th and 19th century factories for large scale production came into existence which resulted in significant changes in the society. With technological advancement, industry acquired its present form. Nowadays, most of the developed and semi-developed nations depend mainly on industries for revenue. There are various kinds of industries which are further divided into classes or sectors – primary, secondary and tertiary. The United Nations Statistics Division carries out systematic classification of all economic activities with the aid of International Standard Industrial Classification based on the criteria of input, output, use of the products produced and the character of the production process.
Industrial policy of a nation guides and controls the process of the structural transformation of the economy. With the emergence of capitalism, organized production became the source of wealth and industrialization went deeply rooted in the consolidation of the modern state.
Industrial policy is the law or regulation imposed by the State to facilitate operation and investment in a certain industry and also determines the investment policy of that industry. Every nation formulates substantial policies and laws on tax, tarriff and trade for the development of industries for protection against dumping. In some countries, the government intervenes with policies on joint venture regulations and local content rules to get the benefits of foreign investments including transfer of technology, managerial techniques and skills to help new industries to gain ground in the international domain. The development of new industry depends on the particular nation's policies and stand on foreign direct investment. Such industrial policies help nations to compete economically and technologically with advanced nations.