Indian & World Geography·Policy Changes
Industries — Policy Changes
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Version 1Updated 7 Mar 2026
| Entry | Year | Description | Impact |
|---|---|---|---|
| Industrial Policy Resolution 1956 | 1956 | This policy marked a significant shift towards a socialistic pattern of society, emphasizing the dominant role of the public sector in industrial development. It classified industries into three schedules, reserving key sectors for state control and promoting heavy industries. | Led to the expansion of public sector undertakings, development of basic and heavy industries, but also resulted in the 'License Raj', bureaucratic controls, and limited private sector growth and competition. |
| New Industrial Policy 1991 | 1991 | A radical departure from previous policies, it ushered in economic liberalization. Key features included de-licensing of most industries, de-reservation of many public sector areas, liberalization of FDI, and public sector reform. | Transformed the Indian economy, fostering private sector growth, attracting foreign investment, enhancing competition, and integrating India with the global economy. Led to rapid growth in sectors like IT and automobiles. |
| MSME Development Act | 2006 | This Act provided a legal framework for the recognition, development, and promotion of Micro, Small, and Medium Enterprises. It defined MSMEs based on investment in plant and machinery/equipment and provided for various support measures. | Formalized the MSME sector, enabling better access to credit, technology, and marketing support. It recognized the crucial role of MSMEs in employment generation and economic growth, leading to targeted policy interventions. |
| Make in India Initiative | 2014 | Launched to transform India into a global manufacturing hub, focusing on 25 key sectors. It aims to attract FDI, foster innovation, enhance skill development, and build best-in-class manufacturing infrastructure. | Reinvigorated the manufacturing sector, improved India's ranking in 'Ease of Doing Business', and attracted significant foreign investment. It has been a cornerstone of the government's industrial strategy. |
| Atmanirbhar Bharat Abhiyan & PLI Schemes | 2020 | A comprehensive vision for a self-reliant India, especially post-COVID-19, focusing on land, labor, liquidity, and laws. It introduced Production Linked Incentive (PLI) schemes across 14 key sectors to boost domestic manufacturing and exports. | Aimed at strengthening domestic supply chains, reducing import dependence, and making Indian industries globally competitive. PLI schemes have shown promising results in attracting investment and boosting production in target sectors. |