Performance of Indian Manufacturing in the Postreform Period

Abstract This article discusses the empirical evidence which shows the way in which various factors have affected industrial performance in India. It compares the Indian growth experience across sectors with the cross-country experience. It also compares the Indian manufacturing sector with that in selected other countries. The article provides an overview of the changes in the regulatory framework introduced in the industrial sector in India and discusses empirical evidence which shows how these regulatory changes have affected the manufacturing sector. It discusses the factors that have inhibited growth in the industrial sector, and looks at the way some of these factors have affected the relative size of the services and industrial sectors.