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

Question

Philoid · Accepted Answer

The reasons behind poor performance of industrial sector during the Reform period are -

1. The policies of liberalisation have made imports cheaper and the foreign goods replaced the demand for domestic goods.

2. Due to the lack of infrastructure development the domestic firms were not able to complete the MNCs in terms of cost of production and quality of goods.

3. Due to high non-tariff barriers we do not have access to global market like other developed countries.

4. The domestic industries were not able to compete with the MNCs.