The progress of industrialisation during the last five decades since I95I has been a striking feature of the Indian economic development.
The process of industrialisation, launched as a conscious and deliberate policy under Industrial Policy Resolution of 1956 involved heavy investments in building up capacity over a wide spectrum of industries. As a result, over the last 40 years, the industrial production increased by about five times making the country the tenth most industrialised country of the world.
In the initial stage the emphasis was put on import-substitution and building of basic heavy industries, so that future development should become free of external influence and foreign technology. In this a greater role of public sector was sought.
In 1980s after the formation of sound industrial base the priority shifted from capital goods industry to consumer goods and intermediate goods industry and from inward looking strategy to outward looking (export oriented) strategy. This paved way for the liberalisation and greater involvement of private sector in industrial development. The progress India has made in (the field of industrialisation is clearly reflected in the commodity composition of its foreign trade in which the share of imports of manufactured goods has steadily declined; on the other hand, industrial products, particularly engineering goods have become a growing component of the country’s export.
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The rapid growth in industrialisation has led to the improvement in managerial and technological skills for efficient operation of sophisticated industries and also for planning, designing and construction of such industries.