Industrialisation in the third world / by O. P. Jain and Sudershan K. Savarna

Recent developments in economic parameters and in the industrial policy framework must have an imprint on the country's industrial complexion in the 1980s. The conspicuous among the former are shortages of industrial inputs, mounting labour unrest, capacity under-utilisation, declining real output and incomes, and widening disparties-class and region-wise. These underline the Future Task before the country's planners and must influence the growth and structure of Industry in the 1980s. The New Industrial Policy unless modified in its essentials by the new government, has sought to impose restrictions on the operations of large industry in the selected fields.

The Eighties will be a decade of 'Rural Poor' whose economic and social lot has to be improved through necessary reconciliation between Growth and Equity. Industry is to play its due role in such a gigantic and paramount Task, firstly, by increasing the supply of manufactured goods generally consumed by the Rural Poor and, secondly, by multiplying employment and income opportunities for them. It will need a far more developed and extensive industrial infrastructure and a crystal understanding of the need for sectoral harmonisation and complementarity of industries as against conflict and confrontation among them. Such an understanding should be based on a reaslistic appraisal of the comparative cost advantage for different manufactures in different sectors as well as a sincere appreciation of our socio-economic compulsions and aspirations.