India's industrial development: an interpretative survey

Kaplinsky, Raphael (1997). India's industrial development: an interpretative survey. World Development, 25(5) pp. 681–694.



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 two 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. This paper reviews these changing strategic perspectives and the economic performance of the industrial sector in the post-Independence period. It concludes 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.

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