1960 – 1969 Automobile Industry
The automobile industry being classified as one of importance under the Industrial Policy Resolution of 1948 was therefore controlled and regulated by the Government.
In order to encourage manufacturing, besides restricting import of complete vehicles, automobile assembler firms were phased out by 1952, and only manufacturing firms allowed to continue.
Production of automobiles was licensed, which meant that a firm required a licensing approval in order to open a plant.
It also meant that a firm’s capacity of production was determined by the Government. During this period, collaborations with foreign firms were encouraged.
The automobile industry being classified as one of importance under the Industrial Policy Resolution of 1948 was therefore controlled and regulated by the Government.
In order to encourage manufacturing, besides restricting import of complete vehicles, automobile assembler firms were phased out by 1952, and only manufacturing firms allowed to continue.
Production of automobiles was licensed, which meant that a firm required a licensing approval in order to open a plant.
It also meant that a firm’s capacity of production was determined by the Government. During this period, collaborations with foreign firms were encouraged.