Question:
Describe the Industrial Policy 1991, towards the public sector.
Answer:
Development of a country originates from industrial development. Industrially developed countries are also economically prosperous. The 2nd Five Year Plan also called the Mahalnobis Model lead to the promotion of heavy and key industries in India. The period 1950 onwards witnessed development of infrastructure, research and development, establishment of large scale along with many small scale industries, co-existence of public and private sector enterprises, growth of both consumer and capital goods industries. The industrial sector made a significant contribution to agriculture and trade.
The industrial policy plays a key role in influencing the foreign trade policy, fiscal policy, the monetary policy, the economic policy of the country. Government of India declared its 1st Industrial Policy Resolution (IPR) in 1948. It divided the industries into four categories.
- Industries that were to be state monopolies. These were limited to atomic energy, arms and ammunition and railways (3 in all).
- Basic industries in which the state would have the exclusive right to new investment- 6 industries were included in this – iron and steel, ship building, mineral oils, coal, aircraft production and telecommunication equipments.
- Industries of national importance that the state might regulate and license in consultation with state government. 18 industries were placed in this category.
- All other industries that would be opened to the private sector without constraints. IPR 1948 remained in force till 1956. Two developments had taken place. One; the first plan which was initiated in 1951 was completed. Second, Parliament accepted socialistic pattern of society. This led to IPR 1956.
Special features of IPR 1956 were as follows:
- Specific and all important roles assigned to the public sector – all industries were classified into 3 groups. These groups were called schedule A,B,C.
- Schedule A – Exclusive responsibility of state. There were 17 industries in this.
- Schedule B – Progressively state owned – 12 industries.
- Schedule C – Generally left to private sector. The state reserved the right to enter this if need be.
- Protection to cottage and small scale industries.
- Cautious approach towards foreign capital.
IPR 1956 remained the basis of industrial policy till 1991
Private, Public and Global Enterprises
Q 1.
Multinational Companies have done more harm than good. Explain.
Q 2.
Discuss the merits and demerits of Departmental Undertaking.
Q 3.
State the various types of organizations in the private sector.
Q 4.
Why is the government company form of organization preferred to other types in the public sector?
Q 5.
Explain three trends indicating changing role of public sector.
Q 6.
Can the public sector companies compete with the private sector in terms of profits and efficiency? Give reasons for your answer.
Q 7.
"MNC's are in a position to exercise massive control on an economy."Substantiate.
Q 8.
Explain the main features of Multinational Company.
Q 9.
Explain the merits and demerits of public-private partnership.
Q 10.
"Public sector has changed its role since 1991 a great deal". Do you agree? Justify your answer.
Q 11.
Give the meaning of Government Company. Explain three merits and three limitations of Government Company.
Q 12.
What was the role of the public sector before 1991?
Q 13.
What is Statutory Corporation? Explain its features, merits and demerits.
Q 14.
What are the benefits of entering into joint ventures?
Q 15.
Explain the concept of Public Sector and Private Sector.
Q 16.
Why are global enterprises considered superior to other business organizations?
Q 17.
Describe the Industrial Policy 1991, towards the public sector.
Q 18.
"Global enterprises are giant both in size and operations."Substantiate this statement.
Q 19.
Define Joint Venture and explain its major benefits.
Q 20.
How does the government maintain a regional balance in the country?
Q 21.
What are the different kinds of organizations that come under the public sector?
Q 22.
"The basic rationale of public sector has changed significantly."In the light of this statement explain any four initiatives taken by the government.
Q 23.
List the names of some enterprises under the public sector and classify them.
Q 24.
What is the difference between Public and Private sector?
Q 25.
Differentiate between Statutory Corporation, Departmental Undertaking and Government Company.
