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Capitalism in India and the Small Industries Policy


  • Tyabji, Nasir


It is instructive to look at the genesis of what has come to be known as the small industries development policy and to see whether it was at all possible in the early 1950s, given the already existing strength of large industry, for any government to have appreciably increased the strength of cottage and other small industry — and thus to have provided the jobs which, it is claimed, the policy actually implemented did not. For this purpose, we must examine the Congress's original views on the pattern of development it wished to see; the results of almost 20 years of debate following the 1929 Karachi resolution; and the opposition these views faced once Independence was a reality — both from large industrialists and from large landholders. Attempts were made by the large industrialists to bring about direct changes in policy, while the large landholders tried to preserve their economic and social interests through intervention largely at the more detailed policy-making stage and at the time of implementation. Though both types of obstruction had an impact on the final shape of the small industries policy, it is with the former that this paper is principally concerned.

Suggested Citation

  • Tyabji, Nasir, 1980. "Capitalism in India and the Small Industries Policy," MPRA Paper 65427, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:65427

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    More about this item


    Capitalism; small-scale industry; Industrial Policy; merchant capital; rural industrialisation;

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • N85 - Economic History - - Micro-Business History - - - Asia including Middle East
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification


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