Crisis of Manufacturing and Re-emergence of Industrial Policy in India
With Prof. Sudi Chaudhuri, DEA invité.
India adopted the planning strategy in the 1950s to economically develop the economy. The economic reforms since 1991 have led to a change in the strategy directed towards import liberalization, de-regulation and market orientation. It was believed and hoped that government need not intervene to develop the manufacturing sector – reliance on private sector and market forces will do the job. But this hope has not materialized. The performance of the manufacturing sector has been very disappointing. This has led to a re-thinking. Government has started to stress the importance of industrial policy. This started during the previous Congress Party led central government. This has continued under the new government led by the Bharatiya Janata Party (BJP). In fact a “Make in India” campaign has been announced by the Prime Minister Modi with huge fanfare.
The talk will try to deal with the following questions and issues: what are main elements of the recent industrial policy experiments in India? In what sense are these different from pre-1991 India? How do these compare with what countries such as China have been doing? What difference has the BJP government made to the strategy? And finally: what is the prospect of the new industrial policy in India?
Sudip Chaudhuri is a Professor of Economics at the Indian Institute of Management Calcutta and also a Visiting Professor of Economics at the Open University, Milton Keynes, UK. His research interests include industrialization and economic development in developing countries, role of state in economic change and patents regime and pharmaceutical industry. He has published widely including a book on WTO and India’s Pharmaceuticals Industry: Patent Protection, TRIPS and Developing Countries, Oxford University. He has done commissioned studies for various organizations including the World Health Organization, Geneva (WHO), United Nation Development Programme, New York (UNDP), United Nations Industrial Development Organization (UNIDO), Vienna, the Reserve Bank of India, the Industrial Development Bank of India and the Government of India. He has been involved in several international collaborative research projects. He has participated in policy dialogues in different forums. His researches have influenced policy particularly in the fields of pharmaceutical industry, patents and local production.