The concept of “Industrial policy” is comprehensive and covers all those procedures, principles, policies, rules and regulations which control the industrial undertakings of a country and shape the pattern of industrialization. It incorporates fiscal and monetary policies, tariff policy, labour policy, and Government’s attitude not only towards external assistance but the public and private joint and co operative sectors as well as large, medium, small and tiny sectors in shaping the pattern of industrial development. It also outlines the Government’s policy towards foreign capital. Thus the industrial policy reflects the philosophy of industrial development of a country.
The attainment of independence on 15th August 1947 Government of India realized it was essential to outline an industrial policy which could create conditions of economic security so very vital for the growth of the industrial structure and thus produce a climate stimulating investment in industry.
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