8.5 Industrialization

. Industrialization Industrialization has been one of the most significant processes in the Indian economic development since independence. After independence, the leaders understood the importance of industrialization for our country. They initiated the process of industrialization under the Industrial Policy Resolution and in all the five year plans industrialization was given due importance. The initiatives of the governments led to a considerable increase in industrial production making India the sixth most industrial country in the world. The development in industries spread across both small scale and large scale and included consumers, intermediate and capital goods. Due to the progress in industrialization a change in foreign trade of India could be seen. India increased the export of engineering goods. Correspondingly, there was development of technological and managerial skills as the industries had to be operated and also planning and designing of the industries had to be done in an efficient manner. Heavy industries were developed and high technical capability also had to be developed in terms of improved infrastructure, advanced technology and appropriate production equipments. The engineering industry was the key to the industrial development of India. It had to be developed as per the strategy of the planners to accelerate industrialisation in India. During the planning process, there was development of basic and capital goods industries. The productive capital of these industries increased from percent in to percent in - . This showed an increase in employment. The number of workers in factories and mines increased tremendously. Industrialization improved the iron and steel, fertilizers, chemicals, cement and non-ferrous metals industries. New capital goods industries were started and developed. During this period, there was a huge expansion of infrastructural facilities in the country. The petrochemical industries developed with efficient refineries, pipelines, storage and distribution systems. These were drastic changes in the economy with improved irrigation system, storage works and canals, hydro and thermal power generation, improved railway system and well laid national and state highways. Better transportation and developed telecommunication system were instrumental in connecting India to the rest of the world. With the introduction of economic reforms in India, there were changes in the industrial pattern of India. There was faster growth of capital goods and consumer goods and there was a slowdown in the rate of growth of basic industries. The growth in banking, insurance and commerce and also the expansion and modernization of ports, shipping and both domestic and international air services have all been due to these economic changes which led to enlargement in industries. Tremendous changes happened in the field of science and technology as well. The contribution of Indian scientists to different fields including agriculture, industry, technology, communication etc. have been tremendous. Many people were trained in the technical field which included cement factories, chemical fertiliser units, oil refineries, power houses, steel plants, locomotive factories,engineering industries etc. Industrial policy An effective industrial policy is essential for any industrialised nation. It enables the state to have proper policies, rules and regulations so that the industries can be regulated and the process of industrialization benefits the economy and the society.