B.Com Ist Year Industrial Policy In India Long Short Question Answer
(1) Increase in Output and Productivity : The new industrial policy will make free industries from licensing, rad tapism, unnecessary delays and interventions in functioning. This will help to increase output and productivity in Indian industries.
(2) Increase in Competitiveness : The new liberalised and open policy will encourage to increase the competitiveness of Indian industries. To stand in competition with the multinational companies, they will take initiate to reduce costs, increase efficiency and productivity along with improvement in quality.
(3) Increase the Efficiency of Public Sector : The new industrial policy has emphasised the need for a new approach to public enterprises. Rehabilitation schemes for sick public enterprises are also introduced and these units are referred to the BIFR for this purpose. The Board of Directors of public sector companies would be made more professional and given greater power. All these effort will be proved helpful to increase the efficiency of public sector.
(4) Rapid Industrial and Economic Growth : The new industrial policy will act as an instrument to promote optimal size and pattern of industrial growth. With the use of large foreig investment and advanced technology in high priority industries, economie growth of the country will get a big boost.
(5) Advantages to Consumers: Now the consumers will high quality goods at reasonable rates. It will help to increase standard of living of the people.
(6) Increase in Welfare of Labourers : This policy also protects the interests of the labourers. The policy had endeavoured ancourage worker’s participation in management. The workers’
operative Societies will be encouraged to play their role in sick units properly.
(7) Increase in Employment : This policy increase the employment opportunities in the country as new big industrial houses will be set-up with the help of foreign collaborations.
(8) Helpful to Reduce Corruption : This policy also prove helpful to reduce corruption due to abolition of licence, quota and permit-raj.
CRITICISM OF NEW INDUSTRIAL POLICY NOTES
The criticism and demerits of new industrial policy can be summarised as under:
(1) Loss from Foreign Capital : Once foreign capital is permitted free entry, the distinction between high priority and low priority industries will gradually disappear over time and all lines of production will be opened to facilitate foreign investment. Experience of permitting Pepsi Cola is too recent to show that the Government sanctioned it in the least priority area. Foreign capitalists, after establishing their corporations in the country, shall ask for remittance of profits and dividends and royalties. With foreign debt burden already becoming heavy, prudence demands that utmost care be taken to invite foreign capital in high priority industries only, otherwise the country may suffer by following the path of Brazil or Mexico.
(2) Increase in Disparities of Income and Wealth : In the new policy, MRTP companies will not require any government approval for establishing new enterprises and for increasing production capacity. This will enhance concentration of income and wealth in favour of rich people. All type of disparities like rural-urban, regional or international will increase to great extent.
(3) Less Importance to Public Sector : This policy reduce emportance of public sector. Now only 4 sectors are reserved for public sector and the private sector and foreign investors have allowed to play freely. This situation will prove harmful for the interest of the people.
(4) Exploitation by Multinational Corporation : national companies will exploit natural resources of our ry for serving their own interests. Instead of making
investment in high and technolgical sectors, they investo consumers good like soap, tooth paste, ice-cream, chocolate ete indigenous industries will be unable to stand in the competition with MNCs.
(5) Guided by International Financial Institutions : Infact, this policy is framed by the government of India under the pressure of International Financial Institutions. This policy is like surrendering the country.
(6) Increase in Regional Disparities: New industrial policy will increase regional disparities in the country. Due to abolistion of licensing policy, most industries will be established in those areas which are already developed. Thus, backward areas will remain as such and this situation increase regional disparities in the country.
(7) Adverse Effect on Small Scale Industries : Due to liberal policies and free entry of foreign capital, small scale industries will not be able to stand in competition with foreign companies. This effects the small scale industries adversely.
Short Answer Questions
Q.1. Discuss the main objectives of the Industrial Policy, 1991.
Ans. See Page 103 and 104.
Q.2. Discuss the main features of new industrial policy. (Rohilkhand, 2006)
Ans. See Page 104 and 105.
Q.3. Write the main shortcomings of new industrial policy.
Ans. See Page 107 and 108.
Q.4. Does new industrial policy prove helpful in rapid development of Indian Economy?
Ans. See Page 106; Explain the merits of new industria poliey.
Table of Contents
B.Com Ist Year Fiscal Policy Long Short Question Answer Notes
[PDF] B.Com 1st Year All Subject Notes Study Material PDF Download In English
B.Com 2nd Year Books Notes & PDF Download For Free English To Hindi
B.Com 1st Year Notes Books & PDF Free Download Hindi To English
B.Com 1st 2nd 3rd Year Notes Books English To Hindi Download Free PDF
B.Com Ist Year Unemployment Short Study Notes Question Answer
Follow Me
Leave a Reply