Why has the industrial sector performed poorly in the reform period?
Similar to the agricultural sector, industrial sector's performance was also poor. The poor performance of industrial sector may be attributable to the following reasons:
1. Cheaper Imports: The demand for industrial output reduced due to the cheaper imports. The imports from the developed countries were cheaper due to the removal of import tariffs. These cheaper and quality foreign imports led to the fall in the demand of domestic goods.
2. Lack of Investment: Due to the lack of investment in infrastructure facilities (including power supply) the domestic firms could not compete with their developed foreign counterparts in terms of cost of production and quality of goods. The inadequate infrastructural investment pushed up the cost of production of the domestic producers and, consequently, led to the non-feasibility of their growth prospectus.
3. High Non-tariffs Barriers by the Developed Countries: It was very difficult to access the developed countries market due to high non-tariff barriers maintained by the developed countries. For instance, US did not remove quota restrictions on imports of textiles from India and China.
4. Vulnerable and Infant Domestic Industries: During the pre-liberalised period, the domestic industries were provided a protective environment to grow and expand. But at the time of liberalisation, the domestic industries were still not developed up to the extent it was thought and consequently, they could not compete with the multi-national companies. The dependence of domestic industries on traditional technologies which were neither cost effective nor quality effective was an important reason for their poor growth. Thus, the domestic industries were adversely affected by liberalisation.
Match the following:
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1. Prime Minister 3. Quota 4. Land Reforms 5. HYV Seeds 6. Subsidy |
A. Seeds that give large proportion of output C. Chairperson of the planning commission D. The money value of all the final goods and services produced within the economy in one year. E. Improvements in the field of agriculture to increase its productivity F. The monetary assistance given by government for production activities. |
The following table shows the population and worker population ratio for India in 1999-2000. Can you estimate the workforce (urban and total) for India?
| Region | Estimates of Population (in crores) |
Worker Population Ratio |
Estimated No. of Workers (in crores) |
| Rural Uraban Total |
71.88 28.52 100.40 |
41.9 33.7 39.5 |
71.88/100 x 41.9 = 30.12 ? ? |
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
Welcome to the NCERT Solutions for Class 11 Economics - Indian Economic Development - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 15: Why has the industrial sector performed poorly in the reform period?....
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