The industrial policy of a country is related to the industrial development of the country. Every national government has the responsibility of drafting an industrial policy and then executing it properly. The industrial policy can also be identified as the blueprint of the country’s development.
Development of the modern world is largely dependent on the industrialization process. Mainly the developing and third world countries are in greater need of industrialization. Development of industries can stimulate economic growth and at the same time, these developments would also generate opportunities for the unemployed section of the respective country. All these positive features are responsible for the major shift of focus from agriculture to industrialization in a large number of countries.
Because of all these, the industrial policies should be practical and designed for the betterment of the majority of population. These policies should provide support to new establishments as well as to the existing operations. The main aim of the industrial policy of any country should be the following:
The production level of the industries should be improved and at the same time the market should also be identified or prepared for the products
Proper use of available resources including human resource for the development of the sector
The standard should be maintained
Joint venture with global leaders should be encouraged
Most of the countries are in the habit of playing active parts or in other words, controlling the process of industrial development through the instruments of taxation, regulations related to the trade and commerce and so on. One of the reasons of these activities is to ensure the growth of the domestic firms and to stop the market from being a dumping ground of surplus products that can hit the economy. But at the same time, it should also be understood that too much rigidity of these rules and regulations can actually ruin the trade and as a result of which the outside investment in the sector would also become limited.
So, for the economic development of the countries and for the betterment of the masses, the free-trade concept should be used in the industrial policy of any country and foreign investment should be encouraged by the governments.
Last Updated on : 1st July 2013