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Evaluation of industrial policy

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Evolution of industrial policy in India can he traced with a brief eview of the industrial scene as it obtained at the time of independence. The industrial scene in India at the time of independence was characterized by the following features:
1. The Industrial sector was extremely underdeveloped 2. There was great resentment at the lack of infrastructure industries. 3. The lack of government intervention in favour of the industrial sector was seen as an important cause of underdevelopment. 4. Export-orientation had been seen as being against the country’s interests. 5. The structure of ownership was highly concentrated. 6. Technical and managerial skills were in short supply.
As a result, the national consensus was that economic sovereignty and economic independence lay in rapid industrialization including particularly the promotion of industrial infrastructure. The stage was set for the practice of economic and industrial policies which emphasized rapid industrialization but through an activist and interventionist role of the government.

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