Industrial reform happening in India is related to trade policy. Industrial reform were adopted to make India less dependent on import. Making India self-sufficient is the policy. This inward looking reform is IMPORT SUBSTITUTION. For this many tariff and quotas were introduced. These help domestic firms a lot. Because of these protection domestic firms are selling low quality goods with higher prices. As per economists some competition is necessary in the market.
Industrial sector worked well. Their contribution to GDP also improve. Small-scale industries help those who don’t have fund to start big industries. India diversified industries, they were not dependent on cotton or jute industry only.
Public sector contributed to this growth in industrial sector. But some public sector are not doing well. So there should be a distinction on what sector should be public or private. As public sector started making loss, but can’t be shutdown as that was a government undertaking. But the private sector was easy to shutdown. As per economists there should be some reform in the industrial policy. To achieve welfare and growth reform is necessary in industrial policy.