3. INDUSTRIAL SECTOR AFTER INDEPENDENCE
INDUSTRIAL SECTOR AFTER INDEPENDENCE
Before British rule: world famous handicraft industries-
Under British Government:
- Handicraft industries (H.I.) declined but could not develop a sound industrial base for place it.
- The primary motive: systematically de-industrializing India was two-fold:
- To turn India’s status from exporter of handicraft items to exporter of industrial raw materials.
- To turn India into a sprawling market so that British industries can continue expansion.
Impact of this: decline of the indigenous handicraft -> massive unemployment + new demand because deprived of locally made goods.
- After 1850: Some modern industry (cotton & textile mills [by Indians in MH, Gujrat], jute [by foreigners in Bengal], Railway) established but progress was slow and for their own interest.
- Cotton Industries-> Mumbai (1854), Jute Industry -> Kolkata (1855), Iron and Steel Plant-> Kulti (1874), Woollen Textile Industry -> Kanpur (1876)
- After 1900: Iron and steel industries (TISCO-1907 in Jamshedpur [Jharkhand]), Cement Industry in Chennai (1904), Chemical Fertilizer Industry ->Tamil Nadu (1906)
- 1940’s: After 2nd world war: sugar, cement, paper industries.
- Capital goods industry (industries which can produce machine tools for current consumption) could not promote industrialization.
- No substitute of the country’s traditional handicraft industries.
- Growth rate of the new industrial sector + contribution to GDP/GVA: was very small.
- New industrial sector was limited (public sector contribution-railways, power, communications, ports, departmental undertakings)
List showing where and when other modern industries of India were first set up
S. N. | Industries | Year | Places |
1 | Iron and Steel Plant | 1874, 1907 | Kulti, Jharkhand |
2 | Cotton Industries | 1854 | Mumbai |
3 | Paper Industries | 1879, 1881 | Near Lucknow, Titagarh |
4 | Cycle Industries | 1938 | Mumbai |
5 | Cement Industry | 1904 | Chennai |
6 | Chemical Fertilizer Industry | 1906 | Tamil Nadu |
7 | Jute Industry | 1855 | Kolkata |
8 | Woollen Textile Industry | 1876 | Kanpur |
Argument: Industries which are not strategic in nature should not continue to be in the public sector. What is your view?
- PSU Privatisation Policy: government will retain maximum of four Central Public Sector Enterprises (CPSEs) in Strategic Sectors and all other Public Sector Undertakings (PSUs) in Non-Strategic sectors will be privatized.
Strategic sector PSUs are:
- Arms & Ammunition of defense equipment
- Defense aircraft & warships
- Atomic energy
- Applications of radiation to agriculture, medicine and non-strategic industry
- Railways
Que. Find out what the basic requirements are for setting up any modern industry? Why TISCO in Jamshedpur ?
The Basic Requirements Are For Setting Up Any Modern Industry?
- AVAILABILITY OF THE RAW MATERIALS,
- LABOR,
- WATER SUPPLY,
- ELECTRICITY SUPPLY,
- TRANSPORT SYSTEM,
- EFFECTIVE COMMUNICATION SYSTEM,
- MARKET
- CAPITAL
- SITE
- CLIMATE
- BANKING FACILITIES
- GOVERNMENT POLICIES
Reasons for the setting up of the Tata Iron and Steel Company at Jamshedpur:
- Close to the iron ore, coal and manganese deposits as well as to Kolkata, which provided a large market.
- Gets coal from Jharia coalfields, and iron ore, limestone, dolomite and manganese from Orissa & Chhattisgarh.
- Near the confluence of the rivers Subarnarekha and Kharkai.
- 32 km away from Kalimati station on the Bengal-Nagpur railway line.
- Government initiatives.