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.
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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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:
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:
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:
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:
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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Several causes lead to urbanisation in India. These are as follows:
The disadvantages or impacts of urbanisation in India are as follows:
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.