Industry Under Economic Liberalization: The Case of Indian Electronics

From the time of independence, the Indian economy operated under conditions of central planning, state control and protectionism. These policies were radically altered in the early nineties with the ushering in of economic liberalization. However, the implications for industry of these developments are still not clear. Since the Indian electronics industry has operated under more liberalized conditions from the eighties, it is the ideal sector to study in order to understand the operational implications of the new regime for Indian industry as a whole. It is in this context that the book analyses the structural changes in and growth of the  Indian electronics industry since the early seventies. The book begins with an analysis of changes in the product structure in an input-output framework. Issues such as the impact of investment decisions on output; inter-sectoral linkages; and the problems affecting the Indian components sector are discussed. Next. Dr. Joseph studies changes in the market structure consequent to the removal of entry barriers and resulting changes in the behaviour of the agents involved. These changes are studied in the structure-conduct-performance paradigm applied to the computer industry. An important feature is an examination of regional market segmentation and its impact on the performance of firms by taking the case of the television industry. Next, the author analyses trends and patterns in technological change focusing on in-house R&D by public and private sector firms, and the terms and conditions of technology import. This is followed by an analysis of the implications of the observed growth and structural change for other macro objectives including employment, international competitiveness and regional balance. The study also deals with issues related on the development and export of software. Based on the experience of the electronics industry, the author concludes by drawing general inferences regarding the implications of economic liberalization for India’s industrial sector. This pioneering study will attract a wide readership among economists, industrialists, planners and policy makers.