What was the Industrial Strategy of India during Ninth Five Years Plan (1997-2002)?
The prolonged slowness in industry was attributed to lack of demand growth, especially from rural areas for manufactured goods, pause in investment, cost of credit, easy availability of imports at lower prices and infrastructural bottlenecks. Tow business confidence and a dormant primary market with few new capital issues reflected the decline in manufacturing which had peaked to 13 percent in 1995/96.
India’s exports also did not do well in the 9th Plan except for two years and averaged less than 6 percent against the target of 12 percent. Growth was almost negative in 2001-02 reflecting the slump in world trade. The average industrial growth rate during the plan (1997-2002) was 4.5% as against the target of 8%.