Indian industrial scenario in post reforms period

Present paper is an attempt to understand and analyze the performance of industrial sector of India in post reforms period. The study is organized in five sections – first section is of introductory nature. After proper review we chose relevant data and methodology which is further analyzed for coming at conclusions for policy formation. There have been many changes in policy as well as execution in the sector which plays a crucial role in the growth story of the nation. One of the important reasons of the present downturn in Indian economy is the bad performance of industrial sector over recent years. In our present study we have taken the data of variables related to industries like number of factories, number of employees, invested capital, net value added (NVA) gross capital formation of industries (GCF), gross domestic product (GDP), overall GCF from 1991-2012 and calculated their compound annual growth rate (CAGR) which comes out to be 2.18%, 4.31%, 11.48%, 12.71%, 11.62%, 6.79% and 10.01% respectively. The contribution of industry to total NVA varied between 6.63 and 12.46 whereas the contribution towards total GCF varied from 9.48 to 31.82. The variations in all variables are high questioning the consistent performance of this critical sector. The problems of sector which includes lack of timely availability of finance and project clearance delays have put India at 134^th rank in World Bank Doing Business (2013). The difficulties need to be addressed by fiscal and monetary policy as well as by manufacturing policy.