A prelude to understanding of our multi-faceted industrial and related economic policies, a brief note on the Government’s present ten point strategy is outlined below :
- Horizontalization : The production base has to be horizontal, industries dispersed, employment generated and diffused and purchasing power widened as far as possible to effect market integration.
- Structural Integration : the time has come to attempt a structural integration of the village industries, small industries and the strong organized industries so that the capital intensity in the organized sector can be reduced, production increased and employment horizontalised
- Cost Rationalization : Industry to cope with current inflation and low productivity must work towards cost rationalization and this can be achieved through efficient plant management, financial management, sales and marketing management , inventory management etc.
- Plant Optimization : The goal of higher productivity and lower costs should be achieved through optimization of resource utilization, better utilization of infrastructure as well as process optimization.
- Conservation : It is urgent to take steps for savings all inputs including energy and search for alternative materials so that industry can function on a durable and assured basis. It also means that industry has to work for conservation of assets utilities and materials.
- Capacity utilization : It is an aspect of production, planning and control. Capacity utilization depends on better materials, machines and inventory management, it also depends on another crucial factor, for example, preventive maintenance rather than breakdown maintenance of plant and equipment.
- Technology Upgradation : Modernization and for that, the transfer of technology is essential for rapid industrial development. The New Technology Policy is quite clear and categories about nature of technology that can be absorbed in Indian industries. This strategy also implies that our industry must undertake increasing amount of investment in R & D.
- Professionalization of Management : The growth of professional management in our business and industry has been rather slow. The growing competition in the world market needs to be matched by a total change in our management structure, culture and attitudes. There is an urgent need for professional managers to man the nodal points such as plant, marketing, finance etc.
- Quality Orientation : We must produce goods so as to meet both domestic and international standard, for this we need not only quality inspection but also continuous efforts at R & D.
- Internationalization/ Globalization : It is not possible to raise a country’s essential export by just creating an export sector. It is desirable to make the export sector an integral part of the country’s industrial production and national economy. Our industry has to reasant itself toward the minds of globalization, typical of an open economy.
The industrial strategy outlined above spells out the basic approach to our national economic planning and policy making which influences our industry or business.