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Industrial policy in India since independence

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  • Aditya Bhattacharjea

    (University of Delhi)

Abstract

This paper provides a comprehensive analytical account of the major industrial policies in India since independence. It identifies three phases: 1948–1980, a period characterised by increasing state intervention; 1980–1991: a transitional period of gradual reforms; and 1991–2020: a period of extensive market-oriented reforms. Within each period, it reviews the major policy changes, and discusses possible reasons for their adoption. It also provides a brief account of industrial performance during each phase, and a more detailed review of how those policies have been evaluated by scholars from different perspectives. The discussion is supplemented by simple explanations for some economic theories and empirical methods that have been used in the literature. The review concludes with an eclectic perspective on the record of industrial policy, and some suggestions for the future.

Suggested Citation

  • Aditya Bhattacharjea, 2022. "Industrial policy in India since independence," Indian Economic Review, Springer, vol. 57(2), pages 565-598, December.
    • Handle: RePEc:spr:inecre:v:57:y:2022:i:2:d:10.1007_s41775-022-00154-9
    DOI: 10.1007/s41775-022-00154-9
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    Cited by:

    1. Bart van Ark & Dirk Pilat & Klaas de Vries, 2023. "Are Pro-Productivity Policies Fit for Purpose? Productivity Drivers and Policies in G-20 Economies," Working Papers 038, The Productivity Institute.

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    More about this item

    Keywords

    India; Industrial policy; Manufacturing; Trade policy; Licensing; Economic reforms;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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