Post-Independence, India’s industrial policy was shaped broadly in terms of the Industrial Policy Resolution of April 1948. That Resolution emphasised clearly the responsibility of government in the matter of promoting, assisting and regulating the development of industry in the national interest. It envisaged for the public sector, an increasingly active role. The 1948 Resolution was reviewed in the light of experience gained, and the new Industrial Policy Resolution was placed before the Parliament on April 30, 1956. The Industrial Policy Resolution, 1956, launched on the eve of the Second Five Year Plan (1956-61), was called by many as the economic constitution of India. It classified industries into three categories, having regard to the part which the state would play in each of them. Economic reforms initiated in 1991 marked a clear change in direction as successive governments started paying attention to difficulties faced by businesses. The Industrial Policy Statement in the Indian Parliament on July 24, 1991, introduced radical changes “to unshackle the Indian industrial economy from the cobwebs of unnecessary bureaucratic controls”. Since then, Indian industry has upgraded technology and product quality to a significant degree and met the challenge of openness after being protected for so long. Recently, the Government has launched a number of programmes/schemes to rejuvenate and modernize the Indian industry. These have included, inter alia, Make in India Campaign, Start-up India Initiative, Stand-up India Scheme and Smart Cities Mission. Till recently, as the government implemented and financed the bulk of infrastructure outlays, all the attendant project risks were also borne by the government. The pattern of financing witnessed in the past has undergone a change with the transition from predominant state investment in infrastructure to increasing private/foreign participation. While the reliance on domestic sources continues as in the past, these are being augmented by foreign funds in the form of equity as well as debt. Logistics refers to a series of services and activities, such as transportation, warehousing, and brokerage, which help to move goods and establish supply chains across and within borders. Recognizing the importance of logistics for exports and growth, the government has included logistics in the harmonized master list of the infrastructure sub-sector. This has eased access to credit and simplified the approvals process for building infrastructure in the sector. Also, the Logistics Division in the Department of Commerce, Ministry of Commerce and Industry, Government of India was created on July 7, 2017. This book is an exhaustive account of developments in the related fields of industry, infrastructure and logistics since Independence in 1947. It provides an understanding of the various problems and situations faced by the country in its journey from a stagnant colonial economy to a modern vibrant industrial power. The book contains 23 chapters which have been organized into 3 parts. Part I (chapters 1 to 11) is titled Industrial Policy and Promotion. It explains and examines Indian industry during the British rule, post-Independence industrial policy, legal and institutional framework for industrialization, rise and fall of public sector enterprises (PSEs), problems and policies pertaining to micro, small and medium enterprises (MSMEs), industrial relations and labour law reforms, entrepreneurship development, Make in India Campaign, Start-up India and Stand-up India initiatives and other related topics. Part II (chapters 12 to 21) is titled Infrastructural Development and Upgradation. It deals with pre- and post-Independence state of infrastructure, energy sources and management, transport modes and services, telecommunications and information technology (IT), special economic zones (SEZs), water resources and irrigation, rural and urban infrastructure and services and some other topics pertaining to infrastructure. Part III (chapters 22 and 23) is titled Logistics Development and Services. This part is devoted to meaning and importance of logistics and the various dimensions of logistics services and support in India. CONTENTS Part I: Industrial Policy and Promotion 1. Indian Industry during British Rule 1.1 Pre-colonial Period 1.2 Indian Economy at the Advent of British Rule 1.3 Consequences of British Rule 1.4 De-industrialization 1.5 Modern Factory System 1.6 Swadeshi Movement 1.7 First World War (1914-18) 1.8 Inter-War Period 1.9 Second World War (1939-45) 1.10 Post-War Period 1.11 Critical Appraisal 2. Post-Independence Industrial Policy: A Review 2.1 Industrial Policy Resolution, 1948 2.2 Industrial Policy Resolution, 1956 2.3 Industrial Licensing Policy Inquiry Committee (ILPIC), 1969 2.4 Industrial Policy Statements 1973, 1977 and 1980 2.5 Industrial Policy, 1947-90: A Critique 2.6 Disillusionment and Rethinking 2.7 Pressure for Industrial Liberalisation 2.8 Liberalization and Delicensing: The New Economic Policy, 1985 2.9 Initiation of Economic Reforms 2.10 Industrial Policy Statement, 1991: The Great U-turn 2.11 Liberalization of the Locational Policy 3. Legal and Institutional Framework for Industrial Development 3.1 Constitutional Provisions for Industrialisation 3.2 Industries (Development and Regulation) Act, 1951 3.3 Securities Contracts (Regulation) Act, (SCRA) 1956 3.4 Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 3.5 Consumer Protection Act, 1986 3.6 Securities and Exchange Board of India (SEBI) Act, 1992 3.7 Foreign Exchange Management Act (FEMA), 1999 3.8 Competition Act, 2002 3.9 Limited Liability Partnership (LLP) Act, 2008 3.10 Companies Act, 2013 3.11 Insolvency and Bankruptcy Code (IBC), 2016 3.12 Institutional Set-up and Support for Industrialization 4. Rise and Fall of Public Sector Enterprises (PSEs) 4.1 Public Sector Expansion and Objectives 4.2 Unsatisfactory Performance and Financial Losses 4.3 Measures to Strengthen Public Sector Enterprises 4.4 Public Sector Disinvestment Commission 4.5 Public Sector Disinvestment Policy 4.6 Public Sector Enterprises in the Changed Economic Scenario 4.7 Present Policy on Public Sector 5. Micro, Small and Medium Enterprises (MSMEs): Problems and Promotional Policies 5.1 Why are MSMEs Important for Indian Economy? 5.2 Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 5.3 Ministry of Micro, Small and Medium Enterprises (MoMSMEs) 5.4 Problems of MSMEs 5.5 Policies and Programmes to Help MSMEs 6. Micro, Small and Medium Enterprises (MSMEs): Sectoral Profiling 6.1 Khadi and Village Industries (KVI) 6.2 Coir Industry 6.3 Handlooms 6.4 Powerlooms 6.5 Handicrafts 6.6 Silk and Sericulture 6.7 Unorganised Wool Sector 6.8 Food Processing Industry 7. Industrial Relations, Trade Unions, and Industrial Sickness 7.1 Protection and Welfare of Labour in the Constitution of India 7.2 Ministry of Labour and Employment 7.3 Evolution of Industrial Relations 7.4 First National Commission on Labour (NCL-I), 1969 7.5 Declaration of Emergency, 1975 7.6 Post-Emergency to 1990 7.7 Economic Reforms 7.8 Second National Commission on Labour (NCL-II), 2002 7.9 Role of Trade Unions 7.10 Industrial Sickness 8. Labour Law Reforms 8.1 Post-Independence Philosophy of Labour Laws in India 8.2 Complexity of Labour Laws Prior to the Introduction of Labour Codes 8.3 Economic Reforms and Labour Laws 8.4 NITI Aayog on Labour Laws 8.5 Code on Wages, 2019 8.6 Industrial Relations (IR) Code, 2020 8.7 Occupational Safety, Health and Working Conditions (OSH) Code, 2020 8.8 Code on Social Security, 2020 9. Entrepreneurship Development 9.1 Entrepreneurship during British Rule 9.2 Role of Entrepreneurs in Modern India 9.3 Obstacles to Entrepreneurship in India 9.4 National Level Entrepreneurship Development Institutes in India 10. Make in India Campaign 10.1 Origin and the Roadmap 10.2 Four Pillars of Make in India Initiative 10.3 Sectors Identified 10.4 Progress of Make in India Campaign 10.5 Make in India and Allied Schemes 11. Start-up India and Stand-up India Initiatives 11.1 Start-up India Initiative 11.2 Stand-up India Scheme 11.3 Dalit Indian Chamber of Commerce and Industry (DICCI) Part II: Infrastructure Development and Upgradation 12. Infrastructure: Conceptual Settings 12.1 What is Infrastructure? 12.2 Why is Infrastructure Important? 12.3 Nature of Infrastructure Services 12.4 Financing of Infrastructure 12.5 Commercialisation of Infrastructure Services 13. State of Infrastructure during British Rule 13.1 Transport Development 13.2 Telecommunications and Broadcasting 13.3 Energy Sources 13.4 Irrigation 14. Post-Independence Institutional and Financial Support for Infrastructural Development 14.1 India’s Infrastructure Deficit 14.2 India Infrastructure Finance Company Limited (IIFCL) 14.3 Infrastructure Debt Funds (IDFs) 14.4 National Investment and Infrastructure Fund (NIIF) 14.5 NITI Aayog and Infrastructure Development 14.6 Regulatory Framework 15. Energy Sources and Management 15.1 Present Energy Scenario 15.2 Electricity Policy and Reforms 15.3 Coal Resources and Policy 15.4 Petroleum Sector 15.5 Renewable Energy Sources 15.6 Atomic Power for Civil Use 15.7 Energy Conservation and Efficiency 15.8 Environmental Aspects of Energy Generation 16. Transport Modes and Services 16.1 Importance of Transport System 16.2 Nature of India’s Transport System 16.3 Indian Railways 16.4 Roads and Road Transport 16.5 Ports, Shipping, and Inland Water Transport 16.6 Civil Aviation 17. Telecommunications, Postal Services, Information Technology (IT) and Broadcasting 17.1 Telecommunications: Policy and Regulation 17.2 Postal Services 17.3 Information Technology (IT) and IT-enabled Services 17.4 Broadcasting Services 18. Special Economic Zones (SEZs) 18.1 Meaning of SEZs 18.2 Types of SEZs 18.3 Configuration of a SEZ 18.4 Advantages of SEZs 18.5 Role of the Government 18.6 Role of the Private Sector 18.7 SEZs and Small Enterprises 18.8 Special Economic Zones Act, 2005 18.9 Incentives and Facilities 18.10 Apprehensions and Concerns 19. Technology Parks 19.1 Science and Technology in India: A Brief History 19.2 Importance of Technology 19.3 Science, Technology and Innovation (STI) Policy, 2013 19.4 Technology Parks 20. Water Resources and Irrigation 20.1 Potential of Water Resources 20.2 Future Requirements of Water 20.3 Water Crisis Scenario 20.4 Land-Water Relationship 20.5 Irrigation Development 21. Rural and Urban Infrastructure and Services 21.1 Rural Infrastructure and Services 21.2 Urban Infrastructure and Services Part III: Logistics Development and Services 22. Logistics: Meaning and Importance 22.1 What is Logistics? 22.2 Importance of Logistics 22.3 Strategies to Improve Logistics 23. Logistics Services and Support in India 23.1 World Bank’s Logistics Performance Index (LPI) and India 23.2 Importance of Logistics for India 23.3 Present Status of Logistics Industry 23.4 Reasons for High Cost of Logistics 23.5 Logistics Division in the Department of Commerce 23.6 Strategies for Logistics Development 23.7 Measures Suggested by NITI Aayog to Improve Logistics 23.8 Goods and Services Tax (GST) and Cost of Logistics 23.9 Recent Initiates to Improve Logistics Bibliography Index