Question

Why has the industrial sector performed poorly in the reform period?

Answer 1

The industrial sector has performed poorly in the reform period because of reasons enumerated below:

(i) Cheaper imports have decreased the demand for domestic industrial goods.

(ii) Globalisation created conditions for the free movement of goods and services from foreign countries that adversely affected the local industries and employment opportunities in developing countries.

(iii) There was inadequate investment in infrastructural facilities such as power supply.

(iv) A developing country like India still does not have the access to developed countries markets because of high non-tariff barriers.