From Village Artisans to Industrial Clusters: Agendas and Policy Gaps in Indian Rural Industrialization

Abstract

This paper offers a broad strategic assessment of the experience of rural industrialization in India. It does so from a policy perspective with the aim eventually of highlighting speci?c outstanding policy issues. Rural and small‐scale industrialization (RSSI) has held a special place in Indian development thinking and policy formulation from the outset. This privileged position, however, does not derive from a universal consensus with regard to the rationale and policy framework applicable to this sub‐sector.However, such has been the symbolic power and populist appeal of RSSI that it has retained its special status within diverse strategic and ideological frameworks. But how has the sub‐sector performed? Is the infant industry still in need of paternalistic protection at the age of ?fty? Are there any credible indications of a strategic break with longstanding policy frameworks inherited from the past? Can any crucial policy gaps be identi ?ed? How well does rural small‐scale industry satisfy the extensive developmental claims made by its proponents? These are the general questions addressed.