IDEAS home Printed from
   My bibliography  Save this paper

Government Policy and Performance: A Study of Indian Engineering Industry


  • Rajdeep Singha

    (Institute for Social and Economic change)

  • K Gayithri


The Indian industrial policy made a major transition towards liberalisation in the mid-1980s, with the proponents of liberalisation expecting not only a general increase in the efficiency of Indian industry but also improvement in terms of innovative performance. Extensive industrial studies, as well as macro-level data, suggest that liberalisation in the field of industrial licensing and foreign technological collaborations have resulted in large scale entry of new firms across different segments of the economy. In this context, this paper makes an attempt to review the promotion-oriented industrial policies of Indian Engineering industry and also trace the industrial growth from 1950-51 onwards. It has been observed that there were mainly two breaks (kinked points) during this period, one in 1965-66 and the other in 1984-85. A review of policies suggests that these breaks were associated with major shifts in policies of the government. The study indicates that the first break came through industrial policies of the government with a focus on the heavy industries during the initial phases, while the other break came during 1984-85, which could be attributed to changes in policies from a restrictive one in the mid 60’s and 70’s, to a liberalised one in this sector in the 80’s.

Suggested Citation

  • Rajdeep Singha & K Gayithri, 2010. "Government Policy and Performance: A Study of Indian Engineering Industry," Working Papers 253, Institute for Social and Economic Change, Bangalore.
  • Handle: RePEc:sch:wpaper:253

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Engineering Industry; Industrial Policy;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sch:wpaper:253. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (B B Chand). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.