Industrialisation and Urbanisation in India

Industrialisation is the process of conversion of any given agrarian society into an industrial society. Industrialisation involves social and economic changes and extensive reorganisation of the economy for manufacturing. Earlier, the industries mainly depended upon the use of fossil fuels. However, with the development of new technologies, green revolution, and other sustainable practices, the use of fossil fuels has reduced to a great extent. As mentioned, urbanisation is the migration or shifting of rural populations towards urban areas. It can be for job opportunities or the better lifestyle that urban areas provide. Due to the greater rate of urbanisation, the number of towns and cities continuously increases. According to a study, 64% of developing countries and 86% of the developed countries will be urban. There are more chances of urbanisation in Africa and Asia (also in India). Industrialisation and Urbanisation in India are interlinked, as the increase in industrialisation increases job opportunities. These opportunities attract rural people, especially younger generations. 

Industrialisation

In industrialisation, the cities establish multiple factories creating job opportunities that attract the rural population. The factories demand high labour and capital for the establishment and proper functioning. Industrialisation offers excellent economic opportunities for small and large-scale industries. Industrialisation provides better technological facilities for the progressive economy of the country. The first Prime Minister of India, i.e., Jawaharlal Nehru, started industrialisation to provide employment and decrease poverty in the country. This concept pushes the country forward towards self-sufficiency. 

Let’s understand the various industrial policies and their objectives. 

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Objectives of Industrial Policy 

• To achieve sustainable productivity growth
• Increase employment and eradicate poverty
• Better usage of available resources
• To compete with international organisations
• To make India a major partner globally

Policies of industrialisation in India

Industrial Policy Resolution of 1948– The industrial policy resolution of 1948 makes clear that India should have a Mixed Economic model. According to this policy, the industries are classified into four categories:

1. Strategic Industries.
2. Basic/Key Industries.
3. Important Industries (Controlled Private Sector).
4. Other Industries.

Industrial Policy Statement of 1956: The main objective of this policy was to revise the policy of 1948. This policy is often famous as the “Economic Constitution of India.” The main objectives of this policy included:

1. Urgency of expanding the public sector.
2. Need to grow the cooperative sector.
3. Encouragement of the separation of ownership and management in industries.
4. Prevention of the rise of private monopolies.
5. Emphasis on cottage and small-scale industries.

According to the Industrial Policy Statement 1956, industries are classified into three categories, namely Section A, Section B, and Section C. 

Drawback: It reduces the scope of expansion of private sector industries.

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Industrial Policy Statement 1977: The postulates of the policy of 1977 are as follows:

1. It aims to improve cottage and small industries.
2. The policy classified the small-scale sector into three categories: cottage, small-scale, and small.
3. In this policy, the government encourages workers’ participation in management from shop floor to broad level. 

Drawback: It had the absence of measures in curbing the dominating position of large-scale units. 

Industrial Policy of 1980: The main aims of this policy are as follows:

1. This policy promotes economic federation. 
2. It raises the efficiency of the public sector industries. 
3. Reversing the previous three years of the trend of industrial production.
4. Regain the faith in MRTP (Monopolies and Restrictive Trade Practices) Act. 
5. Reaffirmation of the belief in the FERA (Foreign Exchange Regulation Act). 

New Industrial Policy (Economic Reforms of 1991): As launched by the Indian government in 1991, this new policy aims to provide economic stability in the country. It aims to raise efficiency. It also aims to de-reservation of public sectors. 

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Urbanisation in India

Several causes lead to urbanisation in India. These are as follows:

• Industrialisation: As already mentioned, industrialisation increases job opportunities. These opportunities attract rural people. There are lesser job opportunities other than agriculture in rural areas. The young generation is more attracted to exploring various urban job opportunities
• Better Lifestyle: There are many social causes such as better facilities, lifestyle, and great medical facilities of an urban area that attracts the rural population
• Better Technology: No doubt technology is the need of the hour. The urban areas are much better developed in technology than rural areas

The disadvantages of urbanisation in India

The disadvantages or impacts of urbanisation in India are as follows:

• Poor air quality
• Bad water quality
• Insufficient availability of resources
• High energy consumption
• Problems in waste disposal

Conclusion

Industrialisation and urbanisation in India are greatly interlinked. One of the main causes of urbanisation is industrialisation in India. Industrialisation provides excellent job opportunities to the citizens. The government of India took several measures and policies to improve industrialisation in India. Urbanisation is the migration or shifting of rural population towards urban areas that can cause disturbance in normal balance or ratio of urban-rural population. The disadvantages or impacts of urbanisation in India are Poor air quality, Bad water quality, insufficient availability of resources, high energy consumption, etc. The government is trying to develop the rural areas and increase employment there.