Industrial Development in India under Liberalization

This paper first seeks to establish that no breakthrough in industrialization has coincided with the transition to a liberalized and open economic policy regime since 1991, and then examines the reasons behind this failure of India to break her industrialization impasse. It asserts that the real barrier to Indian industrialization is a severe demand constraint – and liberalization has only aggravated that, including by not eliminating the limitations of the industrial sector that would permit an export-led process of industrial development.