International Research Journal of Education and Technology

The Economic development and industrialization have become so closely integrated with each other that progress of an economy is now accessed from the success it has achieved in transformation from agricultural set up into an industrial set up. Through industrialization a situation is created whereby many industries are set up rapidly and ultimately backward areas are converted into economically developed areas and backward economies into developed economies. Industrialization, in fact is a composite term which involves a number of structural changes such as changes in the production techniques, factor intensities, industrial employment and output. Industrialization supports all sectors of the economy by skillfully organizing business enterprises, application of science and technology, channelizing specialized labor along with the division of labor, ever increasing role of electrical, electronic and computer application to achieve efficient activity etc. In this way industrialization is not only a way to increase output or national income but is a means of introducing modern technology and changing ways of life and finally the structure of the economy because of its self-reinforcing quality. But all this can be achieved only through well-planned industrial policy. The industrial polity provides direction to the pace of industrialization and industrial development. Hence, to industrialize the country, India also framed industrial policy which was amended, modified and reoriented suiting to the changing times. The comprehensive industrial sector which including Manufacturing, Construction, Electricity, Gas and Water supplies,  annual growth rates was to be 6.9 percent in 1990-91 as compared to -0.1 percent negative   growth in 1991-92 Indian economy faced lot of uncertainties in mid 1991- Inflation was reached double digit of 13.6 percent, shortage of foreign currency and 8.4 percent fiscal deficit problem among these economic crisis situation at 1991-92 government was taken significant decision of Economic liberalization, integration of our economy with global economy  such policies given big boost to  the Indian  economy. There was 3.6 percent growth recorded in 1992-93 further Industrial growth rates tremendously increase year by year and growth rate peaked double digit of 12 percent at 1995-96. GNP   annual growth rates was  third round  estimates to be 10.6 percent in 2018-19 as compared to 6.3percent provisional estimates growth in 2019-20.  The overall Gross National Income of India was 19881742 crore in 2019-20 service sector contributed about 57 percent to GNP and the second highest Industrial sector contributed about 29 percent share to GNP. In this paper I have to effort that studied the developments of Industries in last two decades and what are the importance of Gross capital formation, Bank credit, FDI, and Primary market in providing finance to the development of Indian industrial sector.