Christoper Sinaga

29113528
I. Indias Approach to Economic Development
The Indian governments approach to economic development from independence in 1948
to 1980s was shaped powerfully by the experience of colonial rule and the economic
beliefs of its post-independence leaders. Between 1750 and 1850, the British East India
Company (EIC) was the largest economic enterprise operating in India. As the largest
company, EIC kept Indias tariffs low and made British manufacturers dominate Indian
domestic markets (textiles, shipbuilding, metal-working, glass-making, paper-making). The
British more concerned in supplying infrastructure only for facilitate administration, export
of Indian raw materials and distribution of imported manufactured goods from around the
country rather than improve activities of Indian manufacturing.
At independence, all educated Indians agreed that result of colonial-era policies generally
caused Indias current lack of industrialization and economic development. Therefore,
British Labour Party and Indian political elite agreed that India had to use a mixed economy
by establishing state-owned enterprise and powerful state agencies (set traditional social
interests aside, provide the service of welfare state, and collect the tax revenues). Then the
new Indian leadership immediately began to reverse the long dependence on outside
industry and capital by strengthening the powers of the Union Government (in creating
administrative regulations) and creating 1948 Resolution on Industrial Policy (dealing with
foreign companies and investors).
State-owned enterprises are operating in the major sectors of the economy, with steel,
railways, shipping, aviation, and electrical power generation. These enterprises were
divided into three sectors:
- Industries reserved exclusively to state-owned enterprises,
- Industries in private ownership but under the initiative of the state to nationalized
later, and
- Industries left in the hands of privately-owned firms.
Since many Indian conglomerates became multinational firms, the government had to
extend its control over private business by creating government license. This license will be
needed for:
- Establishing a new factory or plant,
- Using an existing factory or plant to make additional products,
- Substantially increasing production capacity in any factor or plant,
- Taking over the existing business of a firm previously exempt from licensing
requirements, and
- Changing the location of an existing factory or plant.
Christoper Sinaga
29113528
II. Chemical Industries in India, summer 1984
During the last three decades, the chemical process industry in India has shown
remarkable growth. This growth is supported by spectacular capabilities in design and
plant engineering. This industry is now producing an increasing range of new chemicals,
which still have recently been imported.
Increased range of products would involve increased safety hazards. This would demand a
concurrent growth in safety consciousness and application of safety measures. Education
and training facilities of safety engineering are not adequate. Unfortunately, there were
some problems:
- Complex requirements of safety and occupational health in Indian chemical industry
that produces a large number of small volume with high value chemicals and
sophisticated technology
- India chemical industry cannot afford the adequate safety equipment and the trained
safety personnel.
- Level education and safety consciousness of Indian workers at the shop level is poor.
Accidents in this industry is mainly caused by poor design, fabrication, or operation of the
plant along with failure in maintaining good housekeeping, improper storage of
combustible substances, inadequate discharge or prevention of static charge

There were some roles of government agencies to solve those problems and undertake
administration of safety and industrial health:
a. Factories Inspectorates of the State Governments have safety engineers and
technologists.
b. Factory Advisory Service under the Central Government provides power to enact rules
relating to safety, health, and welfare of employees.
c. State Government made the Rules that contain:
- Schedule of safety measure in relation to some specific machineries and processes
- Provisions for declaring some operations as dangerous
d. Directorate of Explosives enforces specific rules regarding storage and handling of
chemicals susceptible to fire and explosion.
e. Boiler Inspectorate supervises installation and operation of boilers and other pressure
vessels.
f. For a serious accident, there is provision for involving consultants in devising better
control measures in safety.

Christoper Sinaga
29113528
III. Excerpts from and Comments on Union of India Foreign Exchange
Regulation Act 1973
This Act is used to consolidate and amend the law:
- regulating certain payments,
- dealings in foreign exchange and securities,
- transactions indirectly affecting foreign exchange and the import and export
- conservation of foreign exchange reserves of the country and proper utilization
This Act applies to all citizens of India outside India and to branches and agencies outside
India of companies or bodies corporate, registered or incorporated in India. This Act
contains:
a. restrictions on the appointment of certain persons and companies as agents or
technical or management advisers in India
b. restrictions on establishment of places of business in India
c. prior permission of Reserve Bank for taking up employment, et in India by nationals of
foreign states
d. restriction on acquisition, holding, etc. of immovable property in India
e. factors to be taken into Account by the Central Government and the Reserve Bank
while giving or granting permissions or license under the Act


Christoper Sinaga
29113528
IV. Government of India, Planning Commission
1. Preface
The Plan encourages:
- fast modernizing Indias agriculture and strengthening and diversifying our industry
- a conscious, internally consistent and carefully thought out program for most
efficient exploitation of Indian resources possible in existing conditions.
- a necessary corrective to the earlier trend which helped particularly the stronger
sections in agriculture and industry
- development of Indias own machinery and technical know-how

2. Aims and Objective of Planning
The broad objectives of planning could be defined as rapid economic development
accompanied by continuous.

3. Tempo of Development
4. The Long Term Perpective
5. Industry
6. Approach
7. Licensing Policy
8. Foreign Collaboration



Christoper Sinaga
29113528
V. Government of India, Preface to 10
th
Five-Year Plan: 2002-07 (for
comparison of current to prior policy orientations)