Industrial Development during Five Year Plans in India Essay Sample

Consequent upon the monolithic investings made during the planning period. industrial development made great paces after independency. The index figure of industrial production ( basal twelvemonth 1970 as 100 ) went up from 54. 8 in 1951 to 150. 1 in 1978-79. Production of finished steel increased about 6 times and that of nitrogen-bearing fertilisers by about 240 times during the period. An of import characteristic of industrial growing in the state after Independence has been observed in the sporadic enlargement of the public sector projects. While in 1951 there were merely 5 public sector projects with an investing of Rs. 29 crores. by 1992 their figure increased to 246 with an investing of Rs. 135. 871 crores. A big figure of diverse merchandises such as steel. coal. aluminium. Cu. heavy and light technology merchandises. fertilizers. basic chemicals. drugs. minerals. crude oil merchandises. engines. aircrafts. and ships are characteristic characteristics of this sector. The function of public sector comprised 96. 15 per cent. 90. 09 per cent. 71. 97 per cent. 55. 97 per cent and 25 per cent portion of the entire investing in communicating. electricity coevals. excavation and quarrying. conveyance and fabrication industries in 1992-93.

The portion of fabricating sector in gross domestic merchandise has increased from 1 1. 88 per cent in 1951-56 to 16. 95 per cent in 1966-71 and 21. 50 per cent in 1991-92. After Fifth Five Year Plan the scheme was adopted to raise the economic system easy from agribusiness based to modern fabrication and progress services. As a consequence. the fabrication sector grew with its portion being above 20 per cent in GDP while agricultural sector’s portion declined from 54. 91 per centum in 1951- 56 to 32. 82 per cent in 1985-90 and 27. 70 per cent in 1991-92. The Industrial growing has non been unvarying since 1951. After a steady growing of about 8 per centum during the initial period of 14 old ages ( 195 1 to 1965 ) . there was fluctuating tendency since then-near stagnation during 1966-68. a high degree of 9. 5 per cent during 1976-77. a subtraction 1. 4 per cent in 1979-80. In the 1960ss ( 1961-70 ) the mean growing rate of industrial end product was put at 5. 5 per cent and in the 1970ss ( 1971-80 ) the mean growing rate has been about 4 per cent per annum. The growing rate was 5. 5 per cent per annum during 1980-85. It picked up to 8. 48 per cent between 1985-90 but slowed down to 5. 3 per cent per annum between 1990-95.

The lowest growing rate during the last decennary of the century was recorded in 1991 -92 ( 0. 6 per centum ) which led to severe economic crisis. It was realised that the development scheme followed boulder clay so needed large-scale alterations. As a consequence wide-ranging reform steps taking to liberalization. denationalization. globalization were taken which gave boost up to the industrial production. Consequently. the highest growing rate of 12. 1 per cent was recorded in 1995-96. Since so it has once more slowed down between 2. 7 ( 2001-02 ) and 8. 4 ( 2004-05 ) per cent. The overall growing of industrial production. as measured by the index of industrial production ( IIP ) . is 8. 4 per centum for April-December2004. The higher growing in the current twelvemonth has been mostly contributed by the 9 per cent growing in fabrication and the 6. 4 per cent growing in electricity.

The decelerating down of the industrial growing rate is a affair of serious concern. Among the factors which have contributed to the lag in industrial growing in the recent old ages reference may be made of the extra capacity build up in some sectors in earlier old ages. monetary/credit tightening of 1995-96 and associated high existent involvement rates. the go oning slack in capital markets. infrastructural restraints. hapless concern sentiment. pronounced diminution in the growing of exports since 1996- 97. and high degrees of uncertainness prevailing in international and domestic spheres. The authorities is taking a figure of remedial stairss to speed up the rate of industrial growing.