The most dramatic changes in economic policies in 1991 related to industry. They were intended to make Indian industry globally competitive. After three years it is legitimate to ask whether there has been enough progress in achieving this intention. There are many individual units that have restructured themselves. Vast funds have flown into the private organised sector. Many foreign investors have expressed interest. The stock markets are euphoric. But there is as yet no clinching evidence that the Indian industry as a whole has restructured itself, or even that much of it is getting ready to do so. Many questions of policy at the levels of the central and state governments and of the operating units remain to be decided in a coordinated manner. Business confidence in the future appears to be at high levels. It has to be matched by substantial investments and changes in methods of working.

This paper is an attempt to review the Indian experience in industry reforms in the past three years. It puts together findings of a number of studies and indicates directions for future policies.