ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Refugees-Show the Moon and Pick the Pocket

Even otherwise, the decision to permit free import of capital goods seems scarcely based on a careful assessment of its impact on Indian industry. The indigenous capital goods industries, many of them in the public sector, have been for many years now suffering from severe underutilisation of capacity because of the low levels of investment in the economy. Since there is no prospect of a sharp rise in industrial investment, the inflow of capital goods imports will further cut into the market for these industries. The grave implications of a deepening of the slump in the heavy and basic industries sector seem to have been brushed aside altogether too lightly in the euphoria generated by the accumulation of foreign exchange reserves.

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