The role played by the government in the process of developing industries are defined as a set of statements known as Industrial policy. The policy also defines the role played by different large and small scale industries and the level of public and private intervention.
The set of objectives for industrial development along with the steps for achieving these objectives is Industrial policy. Therefore Industrial policy mainly defines the roles and activities of the different public and private sectors.
Industrial policy is meant for the growth and development of the industries and in the process of achieving these, all the other activities are defined by the Industrial policy. The growth pattern of the industrial activity is also monitored by Industrial policy by framing certain rules and procedures. Modifications and changes can be made to the policy as per the changes in the environment and situations.