Impact of Further Liberalisation on Indian Industries

Abstract

The New Industrial Policy, 1991 has provided an accelerated pace to the gradual process of economic liberalization of Indian economy which began in early 1980's with the profound objective of increasing the efficiency and technological dynamism of Indian industries. There are not many students evaluating the long term effect of the process on technological capability and competitiveness of Indian industries. Jacobsson' study, in this regard, suggested the possibility of increased dependence on foreign technology in Indian engineering industries. The present paper re-examines the issue on the basis of industries opinion and finds grounds for the apprehension expressed by Jacobsson. The paper suggests that the problem can be traced back to the fact that while worldwide industrial policy formulation has made room for technology policy for ensuring effective use of technology in a liberalized economic regime, the New Industrial Policy of India is quite obvious of it.