Industrial Policy 1980
Congress Party which came back to power in 1980 indicated to thrust in industrial policy of 1956. On 25 July, 1980 a new industrial policy was announced. The main features of the Industrial Policy 1980 were:
1. Revitalization of the Public Sector: The government decided to raise the efficiency of public sector undertakings. For this purpose, it proposed to strengthen their management and develop management cadres in the field of finance, marketing etc. It also proposed to study the industrial units of the public sector and suggest specific steps for their betterment.
2. Economic Federalism: It proposed to promote the concept of economic federalism with the setting up of a few nucleus plants in each distric, identified as industrially backward, to establish as many ancillaries, small and cottage industries as posssible for their development.
3. Redefining the Small Units: The government revised the definition of small units to encourage their development and expansion:
a. Tiny Units: Limit of investment from Rs. 1 lakh to Rs. 2 lakhs.
b. Small Industries: Limit of investment raised from Rs. 10 lakhs to Rs. 20 lakhs.
c. Ancillaries: Limit of investment raised from Rs.15 to Rs.25 lakhs.