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

Solution

Industrial sector has performed poorly in the reform period mainly because of following reasons:
1. Because of the New Economic Policy of 1991, and other reforms India was forced to open its economy for Multinational Corporations and other economies. In the web of globalisation, superior quality goods and services started dominating the economy which seriously hampered the growth of local industrial production.

2. Shortage of electricity and other essential raw materials adversely affect the quality of goods produced and also pose hurdles in the timely availability of goods and services.

3. India has lifted all control and quota restrictions on the exports of readymade clothes under 'Multifibre Agreement' but USA is not reedy to lift quota restrictions on imports of readymade clothes (textiles) from India and China.

Some More Questions From Liberalisation, Privatisation And Globalisation : An Appraisal Chapter

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Liberalisation, Privatisation And Globalisation : An Appraisal

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

Some More Questions From Liberalisation, Privatisation And Globalisation : An Appraisal Chapter

What is liberalisation?

What is privatisation?

What is the meaning of globalisation?

Why did the New Economic Policy emphasize a shift towards private sector?

Why was the rate of growth of private sector industries slow before 1991?

What were the reasons behind incompetence of many Indian products and industries before 1991?

Before 1991 why did India face a serious balance of payment problem?

What was the main objective of delicensing?

Before 1991, MRTP Act inhibited the growth of industries. How?

State the steps taken by the government towards liberalisation under the New Economic Policy.

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