India’s Industrial Policy and Performance

This most valuable book analyzes the industrialization experience of India since independence, situated in its wider global context. It traces the evolution of industrial policy in India, shaped by economic and political factors, to assess its impact on performance. In doing so, it highlights the critical importance of industrial policy as a determinant of both successes and failures. The author argues that the absence of industrial policy after economic liberalization in 1991 is the reason for the premature deindustrialization since then, to stress that rethinking industrial policy is essential to revive the manufacturing sector as a source of economic growth and employment creation. The book makes an important contribution to our understanding of complex issues and contentious debates on industrialization. It should interest students, researchers and policy practitioners in India and elsewhere in the developing world. Deepak Nayyar, Emeritus Professor of Economics, Jawaharlal Nehru University, New Delhi; Honorary Fellow of Balliol College, Oxford, and former Vice Chancellor, University of Delhi This volume provides a balanced and well researched discussion of the evolution of industrial policy in India, and of its likely impact on economic performance, since the 1950s. It debunks the commonly held view that the best industrial policy is no policy. Such research is very timely given the premature de-industrialization of India, despite the recent rapid growth acceleration. It is a ‘must read’ for those engaged in public policy design and the study of alternative development theories and for graduate students in economics. Giovanni Andrea Cornia, Honorary Professor of Economics, University of Florence and former Director, UNU-WIDER, Helsinki This is a comprehensive work on industrial policy by Nitya Nanda as he covers multiple facets of industrial policy for developing countries and with specific focus on India. Given the renewed focus on industrial policy and the role of state in India, this will be an extremely relevant book for students, academicians, and policymakers. Parthapratim Pal, Professor, Indian Institute of Management Calcutta, Kolkata I am happy that such a study has been conducted. The volume should be of immense use to policy makers in their effort to re-orient the industrial policy to bring a competitive manufacturing sector in the country quickly. It should also encourage other researchers to explore new interpretations and to boldly experiment with different measures. It is an essential reading for students and researchers interested in industrialisation in India. K S Chalapati Rao, Professor, Institute for Studies in Industrial Development, New Delhi