The last time India did something on its industrial policy was in 1991 when the country embraced free market economy. After 15 years, India can see the benefits of free market economy and with the positive growth in the Indian economy Indian government now feels the need for a new Industrial policy. Commerce and Industry Minister Kamal Nath has informed this to the journalists in Germany today. He said, "This policy will aim towards all-inclusive growth. This obviously means SCs and STs. I intend to take it to the Cabinet in six weeks". Mr. Nath did not provide details about the new industrial policy but it can be easily assumed that the main focus of it will be to attract foreign investment as much as possible.
India is shining now but the shine is visible only in some cities and except the top 5-10 cities people in the rest of the country are struggling to have a decent life. The people belonging to the lower caste in Indian social stratum are also being marginalized day by day and this is indeed the recipe for social instability. So, you can expect that the Indian government will give incentives to those companies who are willing to set up industries in the less developed areas. We can also see a focus on manufacturing sector as the government is now eager to create jobs here. Although FDI is increasing, India is far behind than China in terms of attracting foreign investment. So, most probably, the Indian government will carry out more reforms and the economy will be further liberalized for the foreign investors.
I am happy that the Indian government is going to adopt a new industrial policy but I just hope that the concerns of the poor and backward people are addressed.
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