ABSTRACT
India’s industry and trade policies have undergone major changes during the last decade.1 For almost three decades after Independence India’s economic policies in general, and industry and trade policies in particular, were strongly influenced by a philosophy of self-reliance. There was widespread government intervention to guide investment to priority areas, protect local industries from imports and strengthen indigenous technological capabilities. The policy instruments used to achieve these objectives included:
• Industrial licensing to control entry and expansion into various industrial activities, with the aim of directing investment into priority areas, establishing the public sector’s dominance in industry and reducing the presence of large private business groups.
