The political economy of industrialisation

On achieving independence in 1947, India accorded priority to industrial growth in its economic plans and policies. The aim was to usher in a new economic order based on self-reliance, optimal employment, social justice and prosperity for all. However, the actual performance of the industrial sector has completely belied these expectations. The central aim of this major study is to trace the path of Indian industrialisation from independence to 1990 and to analyse the reasons for the failure of the growth model adopted by India's planners. Professor Swamy has identified three successive phases of industrialisation: industrial growth with regulation (1950-65); industrial slow-down (1965-74); and industrial revival without regulation (1974-90). He discusses the changing role of the planning process, the performance of the public sector and the contribution of foreign capital in each of these phases. The author concludes that, given the ascendancy of corporate priorities in policy-making, the domination of the central government over regional economic affairs, and the decline of the philosophy of socio-economic justice, the Indian economy has become ensnared in an external debt crisis coupled with widespread unemployment. . Besides providing a critique of policies and performance over more than four decades, this book offers an important perspective in which to examine the current policy initiatives. Identifying external factors as the principal constraint on development, Professor Swamy argues that it will not be possible to develop a people-oriented growth model without tackling the impact of globalisation on the national economy. Only then will it be possible to achieve development according to internal priorities as opposed to dependent industrialisation. Combining a historical framework with a discussion of current issues, this book will be of a considerable interest to those studying the Indian economy and industrial growth, economic policy and development.