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Premature Deindustrialization in India and Re thinking the Role of Government
[La désindustrialisation précoce en Inde : pour un nouveau rôle du gouvernement]

Author

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  • Sudip Chaudhuri

    (IIM Kolkata - Indian Institute of Management Kolkata)

Abstract

The paper is on premature deindustrialization that India is experiencing and the role that government must play. Significant economic reforms were initiated in India in the early 1990s. These have brought about significant changes in the economy, but these have failed to stimulate the manufacturing sector. In fact the situation is worse than that in the pre-reforms period. After discussing the nature of the manufacturing crisis, the paper focusses on three important aspects – import liberalization, foreign direct investment and technological development. The paper analyses the impact of reforms and what has been the official response. The paper stresses the vital importance of industrial policy in India today. It argues for an industrial strategy coordinated and led by the government. The objective of such an intervention is not to replace the private sector but to supplement the efforts of the private sector and enable it to play a more proactive role.

Suggested Citation

  • Sudip Chaudhuri, 2015. "Premature Deindustrialization in India and Re thinking the Role of Government [La désindustrialisation précoce en Inde : pour un nouveau rôle du gouvernement]," Working Papers halshs-01143795, HAL.
    • Handle: RePEc:hal:wpaper:halshs-01143795
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01143795
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    References listed on IDEAS

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    1. Lucas Chancel & Géraldine Thiry & Damien Demailly, 2014. "Les nouveaux indicateurs de prospérité : pour quoi faire ? Enseignements de six expériences nationales," Working Papers halshs-01060845, HAL.
    2. Pierre Salama, 2014. "Les classes moyennes peuvent-elles dynamiser la croissance du PIB dans les économies émergentes ?," Working Papers halshs-00952752, HAL.
    3. Guilhem Fabre, 2015. "The Lions's Share, Act 2. What's Behind China's Anti-Corruption Campaign? [La part du lion, acte 2 : Les dessous de la campagne anti-corruption en Chine]," Working Papers halshs-01143800, HAL.
    4. Guilhem Fabre, 2013. "The Lion's Share. What's behind China's economic slowdown," Working Papers halshs-00874077, HAL.
    5. Pierre Salama, 2014. "Les classes moyennes peuvent-elles dynamiser la croissance du PIB dans les économies émergentes latino-américaines et asiatiques ?," Revue Tiers-Monde, Armand Colin, vol. 0(3), pages 141-157.
    6. Pierre Salama, 2014. "Les classes moyennes peuvent-elles dynamiser la croissance du PIB dans les économies émergentes ?," CEPN Working Papers halshs-00952752, HAL.
    7. Yukari Shirota, 2013. "A Study on Black-Scholes Formula with Computer Simulations and Graphics," Gakushuin Economic Papers, Gakushuin University, Faculty of Economics, vol. 49(4), pages 251-260.
    8. Géraldine Thiry & Philippe Roman, 2014. "The Inclusive Wealth Index. A Sustainability Indicator, Really?," Working Papers halshs-01011250, HAL.
    9. Isabelle Huault & Hélène Rainelli-Weiss, 2013. "Is transparency a value on OTC markets? Using displacement to escape categorization," Working Papers halshs-00927090, HAL.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Guilhem Fabre, 2015. "The Lions's Share, Act 2. What's Behind China's Anti-Corruption Campaign? [La part du lion, acte 2 : Les dessous de la campagne anti-corruption en Chine]," Working Papers halshs-01143800, HAL.
    2. Christian Walter, 2015. "Jumps in financial modelling: pitting the Black-Scholes model refinement programme against the Mandelbrot programme [La modélisation des discontinuités boursières : le programme de Mandelbrot et le," Working Papers halshs-01146581, HAL.
    3. Praveen Jha, 2018. "India’s Macroeconomic Policy Regime and Challenges of Employment: Some Refl ections on the Manufacturing Sector," ICDD Working Papers 20, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).
    4. Mazumdar, Surajit, 2015. "The Low Wage Trap of Indian Manufacturing," MPRA Paper 93163, University Library of Munich, Germany.

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