The following are the main features of Industrial Policy of 1948:
(i) Category of Industries:
Large scale industries were divided into four categories.
(a) Public sector:
It includes industries owned and managed by Govt. viz. Arms and ammunitions atomic energy and railways.
(b) Public-cum-Private sector:
It included six basic industries coal, iron and steel, aircraft manufacture, ship building, mineral oil, telephones, cable and wireless industry. The new ventures relating to these industries will be established by Govt. and already existing units will continue to be managed and developed for next 10 years by Private Sector.
(c) Controlled private sector:
In includes 18 important industries viz. motor vehicles, heavy machine tools, cotton textiles, cement, sugar, paper, shipping material and tractor. These industries will continue to remain under private sector but Central Govt. will have overall control over them.
(d) Private and co-operative sector:
The rest of the industries will be run under private ownership or on co-operative basis Govt. can keep check on these.
(ii) Cottage and Small scale industries:
Rapid development of these industries was emphasised in order to use local resources generating employment ovenues and production of consumer goods.
(iii) Employee-employer relation:
It was aimed that employee- employer relations should be congenial. The worker should get fair wages and social security.
(iv) Control over Foreign Capital:
The role of foreign capital for industrial development was recognised. But Govt. took full control over foreign capital to watch the interests of nation.
(v) Development of infrastructure:
Special stress was laid on development of roads, railways, electricity and irrigation etc..