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. 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. India’s Industrial economy consists of large-scale industrial units, medium-scale industrial units and cottage and small-scale industrial units. Every nation formulates substantial policies and laws on tax, tariff and trade for the development of industries. 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.
In her way to become an economic superpower, India must facilitate socio-economic reforms and take measures for defeating institutional and infrastructure bottlenecks inherent in the system. Availability of both physical and social infrastructure is the prime requirement for a sustainable economic growth. Since independence Indian economy has been thriving hard for improving its pace of development. The cities in India have undergone tremendous infrastructure up-gradation in the past few years but most part of rural India is lagging behind. Similarly in the areas of health and education and other human development indicators, India's performance has been far from satisfactory, showing a wide range of regional inequalities with urban areas getting most of the benefits. In order to attain the status, that currently, only a few countries in the world enjoy. India must take appropriate measures in order to provide a more equalitarian society to its rising population. Presently, Indian economy is facing these challenges: -
Sustaining the growth momentum and achieving an annual average growth of 7-8 % in the next five years.
Simplifying procedures and relaxing entry barriers for business activities.
Checking the growth of population; India is the second highest populated country in the world after China. However in terms of density India exceeds China as India's land area is almost half of China's total land. Due to a high population growth, GNI per capita remains very poor. It was only $ 2880 in 2003 (World Bank figures).
Promoting agricultural growth through diversification and development of agro-processing.
Expanding the industry, by at least 10% per year to integrate not only the surplus labor in agriculture but also the unprecedented number of women and teenagers joining the labor force every year.
Developing world-class infrastructure for sustaining growth in all the sectors of the economy.
Allowing Foreign Investment in more areas.
Effecting fiscal consolidation and eliminating the revenue deficit through revenue enhancement and expenditure management.
Empowering the population through universal education and health care. India needs to improve its HDI rank, as at 127 it is way below many other developing countries' performance. The government is committed to furthering economic reforms and developing basic infrastructure to improve lives of the rural poor and boost economic performance.
Government had reduced its controls on foreign trade and investment in some areas and has indicated more liberalization in civil aviation, telecom and insurance sector in the future.
