Question

Elaborate how the economic reforms process of India impacted the Industrial sector. 

Answer 1

1. As a result of economic reforms, India's manufacturing sector experienced substantial change.
2. The industrial sector became more efficient and competitive as a result of liberalisation policies like trade liberalisation, privatisation, and deregulation.
3. Some domestic businesses modernised to become more globally competitive as a result of increased competition from imports. Inflows of foreign direct investment (FDI) also increased, which prompted the formation of partnerships and joint ventures with global firms.
4. However, several industries were exposed to global competition after trade barriers were removed, which resulted in restructuring and job losses. Overall, issues like infrastructure bottlenecks and regulatory barriers remained even while economic reforms encouraged growth and modernisation in specific industrial sector segments.