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Industrial Structure, Financial Liberalization and Industrial Finance in India: An Assessment

Indian Journal of Industrial Relations

Volume 56 Issue 4

Published: 2021
Author(s) Name: Santosh Kumar Das | Author(s) Affiliation: Assistant Professor, Institute for Studies in Industrial Development, New Delhi
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Abstract

The study explores the emerging relationship between the industrial and financial structures; and its implications on industrial finance. The dynamic interaction between the two sectors has been examined by analysing whether financial liberalisation succeeded in removing financial constraints on industrial sector. We found that not only financial liberalization has not succeeded in removing financial constraints for industrial development in India, but also it underlines growing asymmetries between the financial and industrial sectors. The financial structure that emerged in the post reform period is not aligned as per the diverse needs of the industrial sector. It failed to create a market based approach to the long term financial needs of the industry.

Keywords: N.A.

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