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Industry-types, policies and plans

01-DEC-2014 09:32

    A large number of industries has been established in the post-independence India in private, public and joint sectors. There is a lot of industrial resources and raw materials available in India. Bhilai, Bokaro, Rourkela, Ranchi, Jamshedpur, etc., emerged as major centers during the first one and a half decades of independence.

    Other industries were open to private enterprises. However, later industrialization at medium and small scale was taken up in all the states. Countries like the USA, UK, Russia, France, Germany, Italy, Japan, etc., are a clear testimony of India’s industrial progress. India has today a global market. India and China are considered as the fast developing countries.

    Major Sources of Industrial Finance Available in India

    Some of the sources of Industrial finance available in India are as follows:

    1. Internal Self-Finance:

    Normally, the household not only invests outofits own saving it also has surplus which it lends to other units via, financial institutions. Like banks, capital market etc.

    2. Equity, Debentures and Bonds:

    The latest trend is to issue shares in small denominations of ten rupees so as to enable the largest number of people to participate in providing long-term finance. In this way, industries do not get involved in complications on this account during recession or depression.

    3. Public Deposits:

    Another source is public deposits. It is also a debt-instrument, mostly for short-term finance.

    4. Loans from Banks:

    Loans are given against the guarantee of government securities and stocks with companies. Loans are advanced in the form of overdraft and credit limit.

    5. Development Finance Institutions:

    These institutions provide huge quantity of finances for setting up of new industries, for meeting their several needs and in several forms.

    6. Foreign Capital:

    There are also non-resident Indians who have invested in collaboration with Indians. Indian companies have also raised loans from foreign markets.

    Classification of Industries

    There are various kinds and range of goods and services, so industry may be also of various types:

    1. Primary Industries: Such  are usually very simple industries involving processing of raw materials for secondary industries.
    2. Secondary Industries: These industries take input from primary industries and add significant value to it in different processing stages.
    3. Heavy Industries: They are identified by nature of their bulkyproduct or very high capital inputs or units.
    4. Light Industries: These are less capital intensive and moreinclined to consumer products.
    5. Footloose Industries:Their products are having very high value addition andsmaller in size and so transportation cost is only a smallfraction of total cost.
    6. Tertiary Industries: Industries not related to production process.They are basically trade and services providingindustries.

    Government Policies

    Government is the ruler of an area whether it is communist or capitalist or any other form of government.It has certain ruling goals viz. balance regional development, adequate employment generation, proper utilization of different physical resources, maintaining healthy living environment, national security concerns, etc. Thus, through different policy initiatives like, tax concession/higher tax rates, cheap land/putting ceiling on industrial land use, transport concession/green belt policy, facilitating easy concessional loans/restricting disbursement of any loan, licensing policies, etc., it tries to

    achieve them.

    Who, what, when, where, and  why of  planning

    Planning Commission in these areas in the form of Cabinet Notes, Parliament question and other miscellaneous forms of communication are dealt with in the Division.To inter-act with the State Governments and Union Territories on industrial development issues and to participate in the formulation of Annual and Five year development programs for the industrial sector in the State and Union Territory plans.

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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