Industrialization is regarded as the prime indicator of development. Since political independence, India is striving hard to build a strong industrial base. India inherited a weak industrial foundation as British’s neglected India’s industrialization. India did get her first jute mill as early as 1854 in Calcutta, but except in few areas of jute, textile and coal, Britishers hardly was interested in any other sectors. It is also quite natural that Britishers designed their economic policies to suit their interests, rather than Indians welfare! Hence they did not invest much on developing Industrial infrastructure in India. Fortunately for India, there were few pioneering Indian business entrepreneurs like Jamsetji Tata, Walchand Hirachand, and Ghanshyam Das Birla etc. who passionately tried to mark their niche by establishing Modern large scale industries. These factors did help for large scale industries to contribute modest share of 7 % to India’s National Income, at the time of India’s Independence.The industrialization got a major boost, since independence, more so after the implementation of five year plans in India. Independent India firmly believed that industrialization is the road towards modernization and growth. The Government of India did make its intentions clear as it called for ‘industrial conference’ in December 1947, to suggest ways to build and ensure better industrial climate. As a result a tripartite agreement was entered for 3 year industrial truce between the management, laborers and government. It was followed by tax concessions to industries as well as establishment of ‘Industrial Finance Corporation of India’ in 1948-49. The industrial policy resolution was also passed in 1948. All this boosted the growth of industries in India.In first five year plan, agriculture was given the major priority to ensure the livelihood of the majority. Out of the total allocation of 1960 Crore, the major share of Rs. 600 Crore was allotted to agriculture. Only a meager of 2.8 % (55 Crores) was allotted to industries and minerals. But since the second five year plan, industry was given the ample allocation and encouragement, with more than 20 % of the total allotment was given to industries. The Industrial policy resolution 1956, 1973, 1977, 1980, 1991 future strengthened industrialization in India. With the help of industrial licensing (1969) and MRTP (1969), FERA (1973) government tried to regulate the concentration of economic power in the hands of private till 1991, Public industries were preferred in coal, steel, light & heavy engineering goods, power, petroleum, fertilizers, textiles, chemical and pharmaceuticals, minerals and metals, transportations, equipments and consumer goods till Economic reforms of 1991
