Steps taken by government for developing industries:

1. State-owned enterprise:

• Certain industries such as infrastructural industries, iron and steel plants, insurance, etc. are called key industries of an economy. These industries form the platform for economic development.
• These industries require very huge amount of investment and skills and also are very risky. Hence, private sector fears entering such industries.
• Hence, government itself set-up such industries to boost and maintain the economy.

2. Encouragement to private sector industries:

• To encourage private sectors, government provide various type of assistance to private individuals like purchasing land at concessional rate, electricity, water, tax benefits and finance at lower rates.
• This way government encourages competition and creates a favourable market environment.
• Government has also given entry to private sector in several areas which initially were restricted to public sector only.

3. Import tariff:

• The rate of import duty (tax) charged for importing the goods is called the import tariff.
• To save the local companies from foreign companies, the government charges high import duty on foreign goods. This makes imported items costlier than the local made. As a result, the local industries can survive properly.

4. Technical skills and training:

• Government provides various types of technical and professional training to domestic industries. This helps them to upgrade their products and services at par with international products which in turn helps the local industries to compete against the foreign products.
• These trainings were given largely during the period of liberalization and globalization.
• By such trainings the government makes the local industries aware about new global technologies, goods, selling techniques, management, etc.
• Technical skills also help to create values in the domestic industries.

5. Economic help:

• Government provides various types of economic helps to industries to reduce their production cost.
• This helps the domestic industries to reduce their production costs and sell their products in international market at competitive prices with products of other countries.
• The various forms in which the government provides economic help could be providing concession on land rates, water, electricity, telephone, transport charges, etc. It may also provide finance at a subsidized rate and various other subsidies.

6. Basic facilities/services:

• Government provides basic facilities like road, water, electricity, banks, insurance, sewage and many more to develop industries.
• By availing these basic facilities industries can save their money, time and efforts to produce and sell products faster and more efficiently.

7. Establishing various institutions and policies:

• Government makes industrial policies and also makes necessary changes time to time to help industries grow properly.
• Government frames several favourable policies like import policy, export policy, monetary policy, fiscal policy, tax policy, etc.
• Government drafts laws like Industries Act, Company Act, Competition Act, etc. to prevent unfair competition.
• Government has also created institutions such as IDBI, SIDBI, ICICI, IFCI, GIC, etc. to provide financial help to various industries.
• It also makes efforts and policies to attract roreign investment in India.