Industrial policy 1977
In March 1977, the Janata Party assumed power at the Centre. On 23rd December 1977, the Janata Government announced its new industrial policy by way of a statement in the Parliament. The main elements of this new policy were:
a. Small scale sector was classified into three categories viz:
i. cottage and household industries.
ii. tiny unit with less than Rs. 1 lakh investment, and
iii. small scale industrial unit with investment upto Rs. 10 lakhs.
b. District Industrial Centers were to be set up in each district to beep in the development of small scale and cottage industries.
c. Handloom sector was given preference over power loom and mill sectors.
d. For reduction in regional imbalances, shifting of industries to backward areas was to be assisted and establishment of new industries in urban areas was to be avoided.
e. Special fiscal concessions were proposed for export oriented units.
f. Takeover of sick units would be on a selective basis.