Industrial Policy

In order to reverse the centralization of economic power in the hands of a few, make sustainable use of local resources and bring development to the rural areas Prout advocates that industrial units should be established only in places where the raw materials for that particular industry are available. At present, industry has been centralized only in a few places like Kanpur, Delhi, Mumbai, Ahmedabad, Ludhiana etc.. Raw materials like coal, steel, cotton etc. have to be imported from other places which puts a great strain upon scarce energy resources such as diesel and petrol. This in turn puts extra pressure on foreign exchange. Importing raw materials and exporting finished products raises the price level and requires large scale migration of labor to work in factories creating a serious imbalance in rural and urban areas. All this dramatically increases ecological, habitat, transport, water, electricity and slum problems which, at places like Delhi and Mumbai, have created cultural maladjustments also.
As such Prout’s slogan is: “Industries at the places of their raw materials only”
From the time of Jawaharlal Nehru India adopted a mixed economy, meaning that some industries are simultaneously under the control of the state and the private sector. Having already experienced the failure of this approach, heavily losing state concerns are being sold to either the private sector or to foreign companies in the name of liberalization, rationalization, perestroika, reforms, investment (especially FDI – foreign direct investment), etc.. At the end of the day, this policy will have a serious negative impact on the economic health of the aam aadmi who looks on helplessly at his own impending disaster. It also poses a threat to the future integrity and sovereignty of our nation. We have not forgotten how, slowly but steadily, the East India Company slipped through our gates, acquired the whole country and became its master.
Therefore Prout declares that after confiscating industrial units under private or foreign domination, industry will be organized as follows:
Basic Industry: Spinning mills, petroleum refineries, mining and metallurgy of iron, coal, silver, gold and other metals and the production of basic materials such as bars of precious metals, iron ingots and other such materials will be brought under the exclusive control of the Central Government. The Central Government will run them on a no profit no loss basis only at places where the raw materials they require are available (as mentioned above).
Heavy Industries: Those units requiring basic raw materials produced by basic industries will also be established at the same locations or in their vicinity and will be under the control of the respective State Governments. Only local people will be employed except in special circumstances when proper technical personnel are not available locally. This will be Prout’s permanent policy in order to provide full employment to the local people, make them self sufficient and avoid the huge labor migrations which are the current norm.
Agrico-industries: Industries producing agricultural inputs such as fertilizers, seeds, pesticides, agricultural implements etc. will be established as cooperatives at the village, block and district level, as the need may be. Here also local people will be preferred for employment in such units.
Agriculture based industries: Units such as flour mills, sugar mills, oil mills, dal mills, biscuit factories, bakeries, fruit-juice factories, fruit processing industries, pickle making, dairy products, paper manufacturing, etc. will be assigned to the villages or blocks where the raw materials for them are easily available. They will all be run as cooperatives employing local people which will boost the local economy.
Private Enterprise: Small enterprises such as shops of all kinds, cafe’s, restaurants, dhabas, service units such as motor garages, repair shops, tailoring shops, village and small scale industries, etc. but requiring a limited capital investment, say 5 to 10 lakhs (to be revised or modified according to time and place periodically), will be managed by private individuals.
Agricultural Policy
Presently, about 70% of the population subsist on agriculture. There is a shortage of electricity and lack of irrigation facilities in many states. As a result the entire agricultural output depends on the monsoon. Fertilizers, seeds and pesticides are not available on time. On top of this drought or floods spoil the crops. This saps the vitality of Kissans and makes the viability of agriculture uncertain. Kissans often do not receive even the cost of their inputs for their produce. This is why the standard of living of Kissans is, by and large, very poor. Tragically, suicides have become the order of the day. Prout declares the following steps to ameliorate this desperate situation;
Agriculture will be declared an industry. As basic raw materials like electricity, water or many other inputs are subsidized for industry, similarly, fertilizers, seeds, pesticides, electricity, water, etc. will be subsidized for agriculture. Prices of agricultural produce will be linked to the prices of inputs and direct services employed in these operations.
Since small holdings are insufficient to raise the standard of living and make agriculture viable for Kissans Prout emphasizes that agriculture will be re-organized according to the cooperative system (efforts will be made through discussion and persuasion to include all holdings in cooperatives) and it will be ensured that only 35 –40% people are engaged in this profession while the rest are diverted to other gainful employment.
Agricultural produce such as atta, maida, sooji, fruit juices, processed and canned fruits, pickles and other items made from crops will be established exclusively in the villages and only finished products requiring no further processing shall be sent to towns for sale.
In the event of drought, floods or other natural calamities, government will be liable to compensate the loss 100%. For such an eventualities a National Agriculture Fund will be established.

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