The industrial sector has performed poorly in the reform period due to :
The cheaper imports of foreign goods have replaced the demands of domestic goods. Due to lack of infrastructure, the domestic firms could not compete with their developed foreign counterparts in terms of cost of production and quality of goods. Developing countries like India still do not have access to global markets of developed countries due to high nontariff barriers. The domestic industries were given protection during the pre liberalized period but at the time of liberalization, the domestic industries were still not developed up to the extent it was thought and consequently they could not compete with the multinational companies.