Industrial Development and Foreign Trade

Industrial Modernization

The modernization of Indian culture and Indian economy is largely contributed to the industrialization in India. This industrialization happened after the Independence of India. Majorly the industrial modernization took place in India not a long ago. But the effects of that were not seen. This sector has seen a major boost after Independence. 

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Industrial Modernization

Industrial Modernization

                                Industrial Modernisation

This happened due to the well-structured societies, stable governments, heavy foreign investments, strategic locations, and many more reasons. Also, when you see the industrial development of India, you will find many similarities with China.

The history, the culture, the size and their importance globally are some similar traits that can be noticed. The industrial modernization has led to the development of both countries. The industrial modernization in India saw arise due to the government’s investment.

Thus, fields like nuclear technology, bioengineering, informatics, etc saw a huge boost. This exceeded their needs and created several specialization poles. The ideology was to grow politically and economically. And this was only possible only if the industries are highly modernized.

This ideology was broadly incorporated in India’s step towards the industrial modernization. Also, industrial modernization can be divided into four different categories.

This list includes the strategic industries that were created due to the monopoly of the government. While the second list includes industries that are considered as heavy engineering. Thus, it includes iron, coal, and steel industry.

So, for these industries, the new units were established exclusively by the government. This was done within disturbing the current setup done by the private players.

The list of the industries included 18 industries. It included iron and steel, ferroalloys, heavy castings among the other industries.

For this modernization, the government committed itself towards developing the basic steel industry. Also, in the spirit of this, the government started a chain all over the country for steel plants. The first one was established in Rourkela in Orissa. This was followed by Bhilai and Durgapur.

History of Modernization

The main reason for the modernization of the industries is diversification and industrial growth. This was put into place with the commencement of the second five-year plan.

Also, the strategy involved a shift towards industries that produces basic materials played a bigger role. During independence, the industrial structure was still restricted to textiles and sugar.

However, after that, the first steel plant was set up. Also, the minor works began with the development of engineering for assembly plants and railway workshops.

Also, with the development of the public sector, the industrial organization has gone a major change. It was noticeable particularly in mining as wells organized manufacturing. This sector from 1960 to 1977 grew from 8.1% to 28.8%.

Thus, it can be said that the development of the public sector has been a key change for industrial diversification. Also, the industrial policy of the government was such that there were important roles for the private sector.

Also, it was witnessed that there was development in banking institutions. These aspects are well emphasized in the 10th annual plan.

Practice Questions Industrial Modernization

Q. The first industrial policy of the government in 1948 gave a leading role to the private sector.

A. True

B. False

Answer: B. False

Q. Which of the companies needs to have compulsory licensing?

A. Tobacco

B. Alcohol

C. Drugs and pharmaceuticals

D. All of the above

Answer: D. All of the above

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