Question

Why has the industrial sector performed poorly in the reform period?

Answer 1

After the invention of the new methods of manufacturing, the factories and manufacturing units come up.
Secondary sector(industrial sector)gradually became the most important in total production and employment.

Hence over a time, a shift has taken place.
This means that importance of the sectors had changed.
Most of the working peoples employed in the service sector and this leads to the unemployment in industrial sector and it not performed well in the reform period.

Answer 2

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✚ 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 non tariff barriers .

➽ The domestic industries were given protection during the pre liberalised period but at the time of liberalisation, the domestic industries were still not developed up to the extent it was thought and consequently they could not compete with the multinational companies.