Page 3 - Lessonnote_ Change and Development in Industrial Society

Organised Sector
The organised sector consists of all units employing ten or more people throughout the

year. These have to be registered with the government to ensure that their employees get
proper salaries or wages, pension and other benefits.
Social Implication of Organised Sector
➢ Fixed rules and regulations
➢ Mode of payment has to be transparent on both sides-employee and employer
➢ There is a proper procedure to be followed by employer or vice versa.
➢ Employee cannot be removed from the job without prior notice.
➢ An employee cannot be removed until their retirement age in the government.
➢ There are a lot of perks gratuity, bonuses, provident fund, travel allowance.

Industrialisation in Early Years in Independent India
• The first modern industries in India were cotton, jute, coal mines and railways.
• After independence, the government took over the ‘commanding heights of the
economy.’ This involved defence, transport and communication, power, mining and
other projects which only government had the power to do, and which was also

necessary for private industry to flourish.
• In India’s mixed economy policy, some sectors were reserved for government, while

others were open to the private sector.
• But within that, the government tried to ensure, through its licensing policy, that
industries were spread over different regions.
• Before independence, industries were located mainly in the port cities like Madras,
Bombay, Calcutta.
• But since then, we see that places like Baroda, Coimbatore, Bangalore, Pune,
• Faridabad and Rajkot have become important industrial centres.
• The government also tried to encourage the small-scale sector through special incentives
and assistance. Many items like paper and wood products, stationery, glass and ceramics

were reserved for the small-scale sector.
• In 1991, large-scale industry employed only 28 per cent of the total workforce engaged in

manufacture, while the small-scale and traditional industry employed 72 per cent.

Globalisation, Liberalisation and Changes in Indian industry

❑ It is in the 1990’s when government has followed a policy of liberalisation.
❑ Private companies, especially foreign firms, are encouraged to invest in sectors earlier
reserved for the government, including telecom, civil aviation, power etc.
❑ Foreign products are now easily available in Indian shops. As a result of liberalisation,
many Indian companies have been bought over by multinationals. At the same time some
Indian companies are becoming multinational companies.