Industrial Growth in India During Pre and Post Reform Periods



The annual average growth of industry during the Tenth Plan Period (2002-07) is 8.7 per cent as against the targeted growth rate of 10 per cent. To achieve 10 per cent annual industrial growth during the Eleventh Plan (2007-2012) the infrastructural impediments have to be removed. The entire Post-reform period has been marked by considerable yearly fluctuations.The author says deceleration in exports, low growth of rural incomes as a result of deceleration in agricultural sector growth, slow down in industrial investment and infrastructural facilities are the factors that contributed low industrial growth rate since 1991. The author suggests that care should be taken to reduce its unit cost of exports by improved infrastructure, better quality of products; better marketing, policy rationalization and tariff reduction are the measures need to be taken to achieve high industrial growth. Disinvestments and industrial restructuring programme, capital market rationalization, protection against the displacement by imports and a faster pace of expansion of the home market are the measures necessary to boost the industrial sector of the Indian economy. The present flow of credit from capital markets to industrial sector has not been sufficient to support higher growth. Thus on the whole industrial growth rate in the post-reform period is lower than that in the pre-reform period.

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