India's industrial development: An interpretative survey

In recent years, there has been a significant shift in Indian industrial strategy, from a heavily regulated and inward-oriented structure toward significant liberalization in both domestic and trade policy. At the same time, Indian industry has sustained its historically impressive growth performance. The 2 waves of liberalization - in the 1980s and after 1991 - have been associated with significant structural change. There is some question, however, as to whether this change in strategic orientation is consistent with rising per capita incomes. A paper reviews these changing strategic perspectives and the economic performance of the industrial sector in the post-Independence period. It is concluded that most studies which have been undertaken of Indian industrialization have been macroeconomic in nature and that there has been a poor tradition of microeconomic research into the determinants of industrial competitiveness.