Q.Discuss steps of government to develop industries. [Any five]

Government develops industry via industrial policy, finance through DFIs, infrastructure, incentives/subsidies, and support to MSMEs/SEZs.

The government has taken many steps to promote and develop industries in India. Five important ones are:

1. Framing industrial policies — successive Industrial Policy Resolutions (IPR) laid down the roles of the public and private sectors, licensing rules and priorities, giving a clear direction to industrial growth.
2. Providing industrial finance — the government set up development finance institutions (such as IDBI, IFCI, ICICI, SIDBI and state finance corporations) to provide long-term capital and credit to industries.
3. Developing infrastructure — investment in power, roads, railways, ports, communication and industrial estates creates the basic facilities industries need.
4. Incentives, subsidies and tax concessions — the government offers subsidies, tax holidays, concessional loans and other incentives, especially for backward regions and priority industries, to encourage new investment. …