Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.

Following were some of the short falls of industrial policy pursued by the British colonial administration:

1. De-industrialisation : India could not develop a sound industrial base under the colonial rule. Even the country's world famous handicraft industries declined. No corresponding modern industrial base was allowed to come up to take pride place so long enjoyed by the former.

2. Low grade modern industrial structure : The progress of modern industry remained very slow. British rulers neither permitted modernisation of industries nor they encouraged the growth of heavy industries in India.

3. Lacking of capital goods industries : Capital goods were lacking. There was hardly any capital goods industry to help or promote in further industrialisation in India. There were a few manufacturing units here and there, but they were no substitute to the near wholesale displacement of the country's traditional handicraft industries.

4. Limited operation of the public sector: Another significant drawback of the new industrial sector was the very limited area of operation of the public sector. This sector remained confined only to the railways, power generation, communication, ports and some other departmental undertakings.