In recent years there has been a marked shift in the terrain of discourse on India’s industrial performance. Attention has shifted from structural constraints and the underlying micro-economic relationships to questions of efficiency and government policy. The shift is not altogether unwarranted, provided efficiency is interpreted dynamically in terms of growth, since government policy is often the decisive factor governing industrial performance under all modern economic systems. But it is unfortunate that the discourse has sometimes been dominated by ill informed ideologues, either free market enthusiasts or state control enthusiasts, who know little about how industries work and still less about how policies really affect the performance of industry. Marathe’s essay on India’s industrial policy is a welcome intervention for it is informed by the author’s long years of experience in the implementation of the policy till he retired from government service as secretary in the Ministry of Industry in 1980.
March-April 1987, volume 11, No 2