is 4 minor ii
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Industry word derived from Latin word industriawhich means dexterity & resourcefulness
Any type of Economic Activity producing GOODs
or SERVICES It is part of a chain from raw materials to
finished product, finished product to servicesector, and service sector to research and
development. It includes AGRICULTURE, MANUFACTURING andSERVICEs
Industry varies over time and between differentcountries
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When one Industry depends on theoutput of another
This can cause problems if one industry
has production problems or closes down The CAR INDUSTRY is a good example
each component (engine parts, lights,body etc) may be produced by a differentcompany before it goes to the ASSEMBLYPLANT
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There are four types of Industry: - Primary - Secondary - Tertiary - Quaternary
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This involves RAW MATERIALS or NATURALRESOURCES (before PROCESSING)
Raw Materials can be:
- Quarried - Mined (all below the earths surface) - Drilled for ( INCLUDING: Coal Mining, Oil Drilling,
Gold Mining)
- Grown Collected(INCLUDING: Farming andForestry - INCLUDING: Fishing)
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This involves a PRODUCT from Primary Industry which isPROCESSED or MANUFACTURED into another product
Processing of Raw Materials (where raw materials arechanged into something different)
- Oil refined to make Petrol - Fish is processed to makeFish Fingers!
- Wheat ground to make Flour - Trees are sawn to makeTimber
Manufacturing of Raw Materials (different partsassembled to make a finished product)
- Steel Making - Making Ships/Cars/Televisions - Building Roads and Houses (the FINISHED PRODUCT from one Secondary Industry
may be the Raw Material from another e.g. One factorymay make tyres
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This provides a SERVICE It involves a wide range of services
INSTEAD of making anything and is the
LARGEST group of industries Examples of so-called Service Industries - Teaching - Nursing - Retail
- Civil Service - Police Force - Transport
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This involves a small group of RESEARCH andDEVELOPMENT industries
It is the newest industrial sector (often linked withTertiary) and is growing rapidly due to developments
in INFORMATION TECHNOLOGY and COMMUNICATION It focuses on the LATEST TECHNOLOGY Examples of Quatenary Industries - Designing new computers/writing computer software - Researching new medicines and medical equipment - Genetically modifying plants and animals for farming - New forms of communication through satellites and
fibre optics
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PRIMARY FACTORS: SECON:DARY FACTORS
RAW MATERIALS*distance from raw materials
affects transport costs - LABOUR*
employees with differentskills
are needed - TRANSPORT*
road, rail, sea and airnetworks
are needed for the importand
export of goods - MARKET*
access to people who will
purchase the goods orservices
Energy*
proximity to supplies of electricity (or coal/waterin the past) to power the industry
Site*
modern factories require large areas of flat
land (esp. for assembly lines) - Communications*
reliable telecommunications are increasinglyimportant
- Capital*
money needed to up the industry - Government Policy*
industry is restricted/encouraged in certain
areas by the use of grants, low taxes, rentallowances
- Environment*
attractive surroundings with good leisure facilitiescan be important to a workforce
- Other*
sometimes (as not all bosses are rational)
industries areestablished in places that someone just thinks is05/04/12 8By Devesh Sharma
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Factory system has INPUTS, PROCESSES andOUTPUTS
INPUTS all the items that go into making theproduct
anything needed before the production process cantake place
PROCESSES are factory activities that transformraw materials into the finished product
everything needed to make the product OUTPUTS are what comes out of the factory after
the production process Some OUTPUTS are fedback into the system as inputs:
e.g. PROFIT will be put back in as investment capital
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Inputs ProcessOutputs
Dyes Dyeing, Cutting Shirt
Thread Sewing, Packaging SecondGarments
Power Supplies Administration Clothes
Machinery Factor maintenance Profit
Capital
Profits
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Definition: Industrialization is a historical phaseand experience. Industrialization is the overallchange in circumstances accompanying a society'smovement population and resources from farmproduction to manufacturing production andassociated services.
By S. Haward Patterson Industrial revolution may
be defined as changes in methods of productionbrought about by the invention of power machinery& the consequent development of factory system
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1.Ancient Period 2.Medieval Period 3.Morden Period
1. Ancient Period:-
Food & Protection were main concern
Bow, Arrow & Wooden Stick (Hunting & Safety)
Making fire by rubbing two stones
Discovery of wheel
Note :Urbanization was the main cause of new system camein vogue
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Again It is divided into three industrialsystem
1 :-Feudal System 2:-Guild System 3:-DomesticSystem
1 :-Feudal System The Primary industry wasAgriculture in this era. It was operated by feudal lord & serfs.Serfs were virtual slaves & dependent upon feudal lords .
Fabrication Manually Operated Machines Stocking & Exchange of Goods
Small Industries by Carpenters, Blacksmiths &05/04/12 13By Devesh Sharma
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Merchant Guild:- In this System personswere engaged to look after the interest ofbusinessmen
Crafts Guild:- They were worked forpromotion & protection of craftsmen
Note@@ (Lack of functionality & responsibilities of Officialsas internal factor. Hold of capitalists on production sector& arbitrarily used their own selfish ends as externalfactor) were the reasons of decline of guilds
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Money lenders (sohukaars) weremain source of finance whichprovided money with interest
Barber ,Shoemakers, Washer men&Women Cooks were the main jobsthat time
Domestic goods ( Corase cloth,baskets & earthenware etc)
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In Modern System Industry is movingfrom human/animal power to machinepower.
Factory System Heavy Industry Availability Of Primary Factors
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Industrial policy is a statement to define therole of government to protect & develop theindustry.
It covers rules, regulations, principles, policies,& procedures laid down by government for
regulating & controlling industrialundertakings in the country.
It prescribes the respective roles of the public,private, joint, cooperative large, medium &
small scale sectors for the development ofindustries
It incorporates fiscal & monetary policies, tariff
policy, labor policy.05/04/12 17By Devesh Sharma
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To achieve optimal utilization of human
resources To attain international competitiveness
and To transform India into a major partner
and player in the global arena
In other Words :-
1.Rapid Industrial Development2.Balanced Industrial Growth
3. Balance Industrial Structure05/04/12 18By Devesh Sharma
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Industrial Policy Resolution of1948
Industrial Policy Resolution of1956 Industrial Policy Resolution of
1973 Industrial Policy Resolution of
1977
Industrial Policy Resolution of05/04/12 19By Devesh Sharma
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Industrial Policy Resolution 1948 Priority to promote rural and traditional industries in sectors,
such as: Handlooms, Handicrafts, Sericulture, Coir and Khadi
and village industries Constitution of Statutory Boards / Commissions for the same
Industrial Policy Resolution 1956 Policy Framework for SSI sector Constitution of Independent Board for Small Scale Industries Policy on Credit, Marketing, Technical Assistance, Industrial
Infrastructure and Extension Services.
Policy Focus Priority to mitigate regional imbalances 1977 Measures to promote ancilarisation 1988 Stress on Exports and dispersal of enterprises in rural areas
year 1990 Priority for Small tiny agro industries 199105/04/12 By Devesh Sharma
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It came in forced in April 1956 classified theindustry into three categories
Schedule A:- Carrying 17 industries
Schedule B:- Carrying 12 Industries
Schedule C:- Remaining industries
The Constitution of India, in its preamble, has declared that it aims at
securing for all its citizens: JUSTICE, Social, economic and political; LIBERTY of thought, expression, belief, faith and worship; QUALITY of status and opportunity; and to promote among them all; FRATERNITY assuring the dignity of the individual and the unity of the
Nation.In its Directive Principles of State Policy, it is stated that-
The State shall strive to promote the welfare of the people bysecuring and protecting as effectively as it may a social order inwhich justice, social economic and political, shall inform all theinstitutions of the national life.
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There were 17 industries listed in Schedule A 1. Arms and ammunition and allied items of defence equipment. 2. Atomic energy. 3. Iron and Steel. 4. Heavy castings and forgings of iron and steel. 5. Heavy plant and machinery required for iron and steel production, for mining, for
machine tool
manufacture and for such other basic industries as may be specified by the CentralGovernment. 6. Heavy electrical plant including large hydraulic and steam turbines. 7. Coal and lignite. 8. Mineral oils. 9. Mining of iron ore, manganese ore, chrome-ore, gypsum, sulphur, gold and diamond. 10. Mining and processing of copper, lead, zinc, tin, molybdenum and wolfram. 11. Minerals specified in the Schedule to the Atomic Energy (Control of Production and
Use) Order, 1953. 12. Aircraft. 13. Air transport. 14. Railway Transport.
15. Ship Building. 16. Telephones and telephone cables, telegraph and wireless apparatus (excluding05/04/12 22By Devesh Sharma
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All other Minerals except minorminerals
Aluminum & other non ferrousmetals
Machine Tools Ferror alloys & tool steel Chemical industries (Drugs,
dyestuffs & Plastic Antibiotic & other essential drugs Fertilizers Synthetic Rubber Carbonization of Coal Chemical Pulp Road Transport Sea Tranport
All otherremainingindustries `
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Policy focus is on Deregulating Indian industry;
Allowing the industry freedom and flexibility inresponding to market forces and
Providing a policy regime that facilitates and fosters
growth of Indian industry. In pursuit of the industrial objectives,
Government decided to take a series of initiativesin respect of the policies relating to the followingareas:
Industrial LicensingForeign Investment
Foreign Technology Agreements
Public Sector Policy
MRTP Act05/04/12 24By Devesh Sharma
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The Industrial Policy Resolution of 1956
identified the following three categoriesof industries: Those that would be reserved for development in public
sector.
Those that would be permitted for developmentthrough private enterprise with or without Stateparticipation.
Those in which investment initiatives would ordinarily
emanate from private entrepreneurs. Industrial Licensing is governed by the Industries
(Development & Regulation) Act, 1951. Industrial licensing was abolished for all industries,
except those specified (18 industries), irrespective oflevels of investment
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Limit on foreign equity holdings raisedfrom 40% to 51% in a wide range ofindustries
Foreign Equity Proposals need not to be
accompanied by Foreign TechnologyTransfer Agreement
Procedure for FDI streamlined by creatinga Foreign Investment Promotion Board toconsider individual application case bycase
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Foreign technology agreements in high-priority industries upto Rs. 1 crore weregiven automatic permission.
No permission was required for hiringforeign technicians and foreign testing ofindigenously developed technologies.
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List of industries reserved for the public(Schedule A) reduced from 17 to 8
List of sector reserved for dominance by
public sector (Schedule B) effectivelyabolished
Disinvestment in selected public sectorenterprise to raise finance for development,bring in greater accountability & help createa new culture in their working for improvedefficiency
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Removed the threshold limits of assets in respect of
MRTP companies and dominant undertakings Eliminated the requirement of prior approval of Central
Government for Establishment of new undertakings Expansion of undertakings Merger, Amalgamation and Takeover Appointment of Directors under certain circumstances.
The newly empowered MRTP Commission will beauthorised to initiative investigations on complaintsreceived from individual consumers or classes ofconsumers in regard to monopolistic, restrictive andunfair trade practices.
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