Business Environment, 1st Edition by Pearson

Chapter 20: Industrial and Licensing Policy (1951–1991) | 235 |

in the investment climate and thus discouraged the private sector

investment, resulting in a slow rate of growth of industrial produc-

tion. The Government, therefore, decided to modify its policy. The

Industrial Policy Statement of 2 February, 1973 indicated the direc-

tion of change. The following are the main features of the new policy:

(i) The Industrial Policy Resolution of 1956 would continue to

provide the base for the policy of 1973.

(ii) In the context of the approach to the Fifth Five Year Plan, the

State industrial sector would cover a wider fi eld to promote

growth with social justice, self-reliance and satisfaction of

basic minimum needs.

(iii)