INDUSTRIAL POLICY IN INDIA: Constitutional Vision of Socialism · CHAPTER—III INDIAN SOCIALISM:...
Transcript of INDUSTRIAL POLICY IN INDIA: Constitutional Vision of Socialism · CHAPTER—III INDIAN SOCIALISM:...
CONTENTS
Forexvard Hi Acknowledgement x Contents xi Cases Cited xxii Abbreviations xxx
CHAPTER-I INTRODUCTION 1
Significance of the topic 6 Problem and limitations in carrying out this
study 10 Review of the existing literature 11 Objectives of the study 17 Hypotheses 18 Methodology 19 Plan of Chapters 20
CHAPTER-II CONCEPTUAL FRAMEWORK OF SOCIALISM:
CONCEPTUAL ANALYSIS Introduction Concept of socialism — Backdrop
Definitions and analysis Socialism as defined in dictionaries Socialism as defined by Political Scientists and
Thinkers Different perceptions of socialism Communist perception Capitalist perception The origin and growth of socialism Different dimensions of socialism—A global
perception Utopian and Scientific Socialism Genesis of Utopian Socialism
23 23 24 25 26
29 31 32 35 38
39 40 40
(xij) Industrial Policies in India: Constitutional Vision of Socialism
Scientific Socialism 43 Revolutionary and Evolutionary Socialism 47 Marxism 48 Later modifications of Marxism 49 Leninism 49
Stalinism 51 New Leftism 52 Euro-Communism 53 Evolutionary Socialism 57
Fabian Socialism 57 German Social Democracy 59 Revisionism 60 French Syndicalism 60 Guild Socialism 62 Critical Theory 63
Relevance of socialism in the present context 63 Contemporary Socialism 63 Socialist International 65 Socialism in the Third world 65 Democratic Socialism 66 Neo-revisionism 69 Indian Socialism 69
Findings 70 Distinction between Socialism and
Communism 71 Policy analysis 72 The role of ideology in political economy 75 Glossary of ideological mutations 78 Summary 81
CHAPTER—III INDIAN SOCIALISM: PHILOSOPHICAL ASCRIPTIONS 85
Genesis and growth of Indian socialism 87 Phase I: Socialist values in the preaching of
great Sayers and Seers — A philosophic foundation 87
CONTENTS (xiii)
Phase II: Socialist orientation and early years of Indian National Congress 92
Phase III: Institutional developments of socialist ideology—A political orientation 95
Entry of Communism 99 The birth of Congress Socialist Party 100 Praja Socialist Party 104 Indian socialist thinkers—Different faces 106 Nehru's Socialism (1889-1964) 106 Nehru's Socialist Vision 107 Nehru's Socialist Model 111
The Economic Model 112 Political Model 114
An assessment 114 Gandhian Socialism 116 Dr. Ambedkar—An apostle of social justice 121 Jaya Prakash Narayan's Socialism (1902—
1979) 124 Lohia's model of indigenous socialism 131 Acharya Narendra Deva—a humanitarian
socialist 134 Ashok Mehta's Democratic Socialism 137 Subhas Chandra Bose's Samyavada 140 M.N. Roy — A revolutionary socialist 142 Socialist commitments of Mrs. Indira
Gandhi 145 Summary 154
CHAPTER—IV CONSTITUTIONAL VISION OF SOCIALISM 165
Shaping of the Indian Constitution-A socialist perspective 167 Indian Constituent Assembly—
Constitution and composition 168 Objective Resolution—A declaration of
dedication for socio-economic justice 168
(xiv) Industrial Policies in India: Constitutional Vision of Socialism
Constituent Assembly Debates on adoption of the word 'socialist' in the Preamble 172
Constituent Assembly Debates on Fundamental Rights—A Special reference to 'Right to property' 175
Constituent Assembly Debates on the Directive Principles of State Policy 182
Clause 36 184 Clause 37 184 Clause 38 185 Clause 43 185 Clause 44 185 Socialist fabric of the Constitution 187 Preamble —An embodiment of goal values
and instrumental values 189 Goal values and instrumental values 192 Insertion of the word 'socialist' in the
Preamble—The Constitution 42nd Amendment Act, 1976 198
Constitution (First Amendment) Act 1951 199 Constitution (Fourth Amendment) Act
1955 200 Constitution (Seventeenth Amendment)
Act 1965 202 Constitution (Twenty-Fourth Amendment)
1971 203 Constitution (Twenty-Fifth Amendment)
Act 1971 204 Constitution (Twenty-Sixth Amendment) Act
1971 205 Constitution (Forty-Second Amendment) Act
1976 206 Criticism of the Preamble and its
Amendment 211 Fundamental Rights —A Socialist
Perspective 212 Impact of the Constitution (Forty-fourth
Amendment) Act, 1978 220
CONTENTS (xv)
Directive Principles of State Policy—A socio-economic charter 221
Can we define the Constitutional Vision of Socialism? 225
Summary 227
CHAPTER-V SOCIALIST COMMITMENT IN INDUSTRIAL POLICIES IN
INDIA IN THE TIME FRAME CONTINUUM OF PLANNING 231 Introduction 231 Economic Planning and Industrial Policies 232 Planning in India-A socialist perspective 236
Genesis of planning in India and the initial exercises 237
Debate over alternative approaches 241 Strategies of Planning 241
Industrial policies in India 244 A historical perspective of Indian
industries 244 Industrial policies after independence 248
Industrial Policy Resolution of 1948 248 Categorization of Large Scale Industries 249 Call for foreign collaboration 249 Emphasis on cottage, village and small
scale industries 250 Industrial Relations and Labour welfare 251 Nationalisation measures 252 Curb on monopoly and concentration of
economic power .253 Formulation of Industrial Licensing Policy 253 Role of Public Sector 254 Industrial finance 255 Industrial Tariff Policy 256 Industrial growth 256
Evaluation of the policy 257 Industrial Policy Resolution of 1956 258
-i) Industrial Policies in India: Constitutional Vision of Socialism
Recategorisation of Industries 259 Role of the State and the Public Sector 259 Fair and non-discriminatory treatment for
the private sector 260 Encouragement to Village and Small-scale
Industries 260 Reduction of regional disparities 260 Industrial Relations and Labour Welfare 260 Industrial finance 261 Curb on Monopoly and Prevention of
Concentration of Economic Power and other Trade Controls 261
Attitude towards foreign capital 262 Approach towards foreign collaboration 263 Nationalization Measures 263 Licensing System 265 industrial Growth under Industrial Policy
Resolution 1956 until 1977 269 Evaluation of the Policy Resolution of 1956 271 Industrial Policy Statement of 1977 273 Development of Small Scale Sector 273 Promotion of export-oriented industries 274 Approach towards foreign collaboration 274 Rehabilitation of sick units 275 Expanding role for the public sector 275 Professionalisation of public sector
management 275 Regulation of big business houses 275 The equity reduction of foreign companies 275 Nationalization measures 276
Evaluation of 1977 industrial policy statement 276 Industrial Policy of 1980 278 Small Scale and Village Industries 280 Revitalization of the Public Sector 280 Economic Federalism and Development of
Backward Areas 280 Industrial Sickness 280
CONTENTS (xvii)
Energy Conservation and Ecological Balance 281
Import Policy 281 Liberalized licensing after 1980 281 Industrial Growth 282 E valuation of Policy of 1980 282 New Industrial Policy of 1991 283
Compulsions 284 Objectives set forth under the Industrial
Policy Resolution of 1991 291 Policy measures 292 Industrial Licensing 292 Foreign Investment 293 Foreign Technology 293 Public Sector Policy 294 MRTP Act 296 Promoting Small Scale Industries 297
Evaluation of the New Industrial Policy of 1991 298 Post-policy reforms 300 Measures towards privatization 300 Faulty Disinvestment 303 Rectification of Disinvestment Wrongs 306 Measures of Globalization 307 Post-2000: Industrial Reforms with
Humane face 307 Summary 308
Pre-reform Industrial Policy Resolutions 309 Post-reform Industrial Policy 310
CHAPTER-VI LEGISLATIVE AND JUDICIAL RESPONSE TO INDUSTRIAL
POLICIES Introduction Legislative response to industrial policy
measures Industrial Socialism Legislations to promote industrial relations
311 311
311 313 314
7Üi) Industrial Policies in India: Constitutional Vision of Socialism
The Industrial Dispute Act, 1947 315 The Industrial Employment (Standing
Orders) Act, 1946 316 The Trade Union Act, 1926 316
Legislations to regulate private sector 317 Industries (Development and Regulation)
Act, 1951 317 The Monopolies and Restrictive Trade
Practices Act, 1969 317 Foreign Exchange Regulation Act 1973
(FERA) 318 Legislations to gain public ownership of
means of production—Nationalization enactments 318
Legislations relating to Sick Units 320 Legislations relating to Small Scale, Village
and Cottage Industries 321 Legislations to promote labour welfare 322 The Workmen's Compensation Act, 1923 323 The Payment of Wages Act 1936 323 The Minimum Wages Act 1948 323 The Factories Act, 1948 324 The Mines Act, 1952 325 The Employees State Insurance Act, 1948
(ESI Act) 326 The Employees Provident Fund and
Miscellaneous Provisions Act, 1952 326 The Maternity Benefit Act, 1961 327 The Payment of Gratuity Act, 1972 327 The Payment of Bonus Act, 1965 327 The Bonded Labour System (Abolition)
Act, 1976 328 Special legislations to regulate child and
women labour 328 Report of the Second National Commission on
Labour 2002: A brief sketch 330 Recognition of Rights of Workers 331
CONTENTS (xix)
Gender Expression 332 Categorization of Workers 332 Exclusion of certain categories from
application of labour laws 332 Consolidation of Labour Relation Law 332 Changes in Trade Union Act 332 Suspension Period 333 Lay off and Retrenchment - 333 Access to justice 333 Strike ballot 334 Illegal Strikes and Lockouts 334 Workers participation in management 334 Uniform application of labour laws 334 Labour Flexibility and Contract Labour 334 Minimum wage fixation 335 Bonus 336 Social Security Package 336 Special provision for women 336 Non-exemption for EPZ and SEZ 337 Child Labour 337 Closed shop system 337 Labour Judicial Service 337 Umbrella Legislation for unorganized
sector 337 Obligation of Employers 338 Social security benefits 338 An assessment of recommendations 339
Paradigm shifts in legislative trends 340 Amendment of Monopolistic Restrictive
Trade Practices Act in 1976 and 1991 342 Repeal of Monopolistic Restrictive Trade
Practices Act, 1969, and bringing in Competition Act, 2002 342
Repeal of Foreign Exchange Regulation Act (FERA) and bringing in Foreign
(xx) Industrial Policies in India: Constitutional Vision of Socialism
Exchange Management Act (1999) (FEMA) 343
Paradigm shifts in labour legislations 344 Paradigm shift in NCL reports 345
Judicial response to industrial policy measures 345 Judicial response to nationalization
measures 348 Supreme Court between 1950 and 1971 348 Supreme Court between 1971 and 1980 355 Post-Emergency Supreme Court 357 Judicial response to industrial disputes and
labour welfare legislations 362 Supreme Court and right to strike 362 Supreme Court on retrenchment, bonus
and equal pay for equal work 364 Period of judicial conservatism (1950-59) 364 Period of judicial pragmatism (1960-79) 368 Post-Emergency Supreme Court 370 Judicial response to New Industrial Policy
measures 376 Supreme Court on socialism 383
Summary 385
CHAPTER—VII SUMMARY, CONCLUSIONS AND SUGGESTIONS 387
Summary 337 Socialism 389 Cultural base 391 Economic base 392 Political base 392 Intellectual base 393 Overall assessment of the industrial policies in
India 400 Multi-dimensional conclusions from the above
analysis 407
CONTENTS (xxi)
Evaluation of objectives and verification of hypotheses 413
Suggestions ' 415 From industrial perspective 415 From legal perspective 416 From ideology perspective 418 From global perspective 418 It is an eternal truth 418
ANNEXURES I Industrial Policy Resolution (6 April 1948) 421 II Industrial Policy Resolution (30 April
1956) 429 IIA Statement by the PM in the Constituent
Assembly (6 April 1949) 437 III Industrial Policy Statement (23 December
1977) 439 IV Industrial Policy Resolution (23 July 1980) 453 IVA Industrial Policy Statement (31 May 1990) 465 V Industrial Policy Resolution (24 July 1991) 471 VI Industrial Policy Reforms after 1991 493 VII Objective Resolution (13 December 1946) 499 VIII Selected Articles from the Constitution of
India 500 IX Relevant Constitutional Amendments 509 X National Manufacturing Policy, 2011 513
BIBLIOGRAPHY Bibliography 549
SUBJECT INDEX Subject Index 567
CASES CITED
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Air India Statutory Corporation v United Labour Union AIR 1997 SC 645 375
Ajaib Singh v Sirhind Coop. Marketing-cum-Processing Service Society Ltd. (1999) 6 SCC 82 194
Akadasi Padhan v State of Orissa (1963) 2 Supp SCR 691 383
All-India Bank Employees Association v National Industrial Tribunal AIR 1962 SC 171 363
APPCB v M.V. Naidu AIR 1999 SC 822 218
Assam Sillimanite Ltd. v Union of India (1992) 1 Comp LJ 165 (SC): AIR 1992 SCW 754 360
Bala (S.S.) v Sardana (1997) 8 SCC 522 196
Balco Employees Union (Regd.) v Union of India (2002) 1 Comp LJ 205 (SC): (2002) 2 SCC 333 380
Bandhua Mukti Morcha v Union of India AIR 1984 SC 802 373
Basu (D.K.) v State of West Bengal AIR 1997 SC 10 218
Bella Benarjee v State of West Bengal AIR 1954 SC 170 200,351
Bharatkhand Textile Manufacturing Co. Ltd., Ahamedabad and others v Textile Labour Association AIR 1960 SC 833 368
Bhikaji Narayan v State of M.P. AIR 1955 SC 781 361
Bijoy Cotton Mills Ltd. v State of Ajmer AIR 1964 SC 193 %9
Bommai (S.R.) v Union of India AIR 1994 SC I918 196, 227,412,417
Centre for Public Interest Litigation v Union of India and another (2003) 4 Comp LJ 1 (SC) 381
CASES CITED (xxiii)
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Delhi Science Forum and others v Union of India and another (1996) 2 Comp LJ 1 (SC): (1996) 2 SCC 405 379
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Excel Wear v Union of India AIR 1979 SC 25 211,384
Express Newspaper (Private) Ltd., arid another v Union of India and others AIR 1958 SC 578 335
Fertilizer Corporation Kamgar Union (Reg.) Sindri and others v Union of India and others (1981) 1 SCC 568 377
Francis Corallie v Delhi Administration AIR 1981 SC 746 371
(xxiv) Industrial Policies in India: Constitutional Vision of Socialism
G.B. Pant University of Agriculture and Technology v State of Uttar Pradesh AIR 2000 SC 2695: (2000) 7 SCC 109: (2000) 1 LLJ 1109: (2000) All LJ 2420 375
Garg (R.K.) v Union of India (1982) 1 Comp LJ 139 (SC): AIR 1981 SC 2138 378
Garment Cleaning Works v Workers (1961) 1 LLJ 513 (SC) 327
Garment Cleaning Works, Bombay v Workmen AIR 1960 SC 673 ' 368
Golaknath (I.C.) v State of Punjab AIR 1967-SC 1643 149, 203, 206, 215,
217, 351, 352, 354
Hari Prasad Shiv Shankar Shukal v A.D. Divelkar AIR 1954 SC 121 365
Hinch Lai Tiwari v Kamala Devi and others (2001) 6 SCC 496 218
Huesalnara Khatoon v State of Bihar AIR 1979 SC 1360 219
Inderjeet v State of U.P. (1979) 4 SCC 246 357, 378
Indian Ex-Services League v Union of India (1991) 2 SCC 104 375
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CASES CITED (xxv)
Kesavananda Bharati v State of Kerala (1973) 4
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SCC 225 188,190,192, 206, 207, 212,355,356,357,412
218
219 Kochuni v State of Kerala AIR 1960 SC 1080:
(1960) 3 SCR 887 202,351
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Maha Rao Saheb v Union of India (1981) 1 SCC 166 359
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Mehta (M.C.) v State of Tamil Nadu AIR 1997 SC 699 219
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Minerva Mills Ltd. v Uiuon of India AIR 1980 SC 1789 358,359,384
(xxvi) Industrial Policies in India: Constitutional Vision of Socialism
Model Mills Nagpur Ltd. v Dharam Das and others AIR 1958 SC 311 363
Muir Mills Co. Ltd. v Sruti Mills Mazdoor Union AIR 1955 SC 170 364
Munna v State of UP AIR 1982 SC 806 219
Nageswar Rao v APSRTC AIR 1959 SC 308 361
Nakara (D.S.) v Union of India (1983) 1 SCC 305 211, 372,383
National Textile Workers' Union v PR. Ramakrishnan (1983) 1 Comp LJ 1 (SC): (1983) 1 SCC 228 194
Neeraja Chaudhary v State of MP AIR 1982 SC 1099 372
Olga Tellis v Bombay Municipal Corporation (1985) 3 SCC 545: AIR 1986 SC 180 218, 219, 374
Patna Electric Supply Co. Ltd. v Patna Electric Supply Workers Union AIR 1959 SC 1035 366
Peerless General Finance and Investment Co. Ltd. v Reserve Bank of India- (1992) 1 Comp LJ 391 (SC): (1992) 2 SCC 343 379
People's Union for Democratic Rights v Union of India AIR 1982 SC 1473 219, 372
Police Commissioner, Delhi v Registrar, Delhi High Court AIR 1997 SC 95 218
Prabha Dutt v Union of India AIR 1982 SC 6 218
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Premium Granites and another v State of T.N. and others (1994) 2 SCC 691 379
Punjab National Bank Ltd. v Shri Ram Kumar AIR 1959 SC 598 366
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Sri Radhy Shyam (Dead) through LRs and others v State of UP and others (2011) SCC L Com 189 214,220
(xxviii) Industrial Policies in India: Constitutional Vision of Socialism
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Standard Vacuum Refining Co. of India v Its. Workmen AIR 1958 SC 578 335,369
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Vajravelu Mudaliar (P.) v Special Deputy x
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