History of Modern Industries

The modern industrial development in India started with the establishment of the first cotton textile mill at Mumbai in 1854, predominantly with Indian capital and entrepreneurship.

Jute industry made a beginning in 1855 with the establishment of a jute mill in the Hooghly Valley near Kolkata with foreign capital and entrepreneurship.

Coal mining was first started at Raniganj in 1772. Railways were introduced in 1854. Tata Iron and Steel Plant was set up at Jamshedpur in 1907. Several other medium and small size industries like cement, glass, soaps, chemicals, jute, sugar and paper followed.

The industrial production in pre-independence period was neither adequate nor diversified. At the time of independence, the economy was under-developed with agriculture contributing to more than 60 per cent of the GDP and most of the country’s export earnings. After 60 years of independence, India has now shown the signs of becoming a leading economic power.

Industrial development in India can be divided into two phases. The Government successively increased its control over different economic sectors during the first phase (1947-1980). In the second phase (1980-97) it took measures to liberalise the economy between 1980 and 1992. These measures were somewhat adhoc. After 1992, the whole process of liberalization became more focused and radically different in nature.

After independence, systematic industrial planning under different five year plans helped in establishing a large number of heavy and medium industries. The main thrust of the industrial policy was to remove regional imbalances and to introduce diversification of industries. Indigenous capabilities were developed to achieve self sufficiency. It is due to these efforts that India has been able to develop in the field of industry. Today, we export a large number of industrial goods to various countries.