Contradiction and Negotiation: New Economic Policy and Industrial Policy Transition in West Bengal, 1987 – 2000

Abstract

India’s transition in 1991 to a regime of ‘structural adjustment’ is a watershed in the post-independence Indian economy. As an effect of this New Economic Policy (NEP), the traditional and indigenous industries were exposed to a severe crisis. In West Bengal, the impact of NEP onslaught was greater. In West Bengal the situation became even worse in respect of the industries, both in the private and public sectors, which had already started becoming sick for various reasons, including lack of investment, old machineries, managerial inefficiency and lack of ability to withstand competition in the market. Initially, the NEP faced massive mass opposition mobilised by the left-wing parties, but later the Left Front government adopted its own policy to revive the stagnating industrial condition of the state. This article attempts to analyse this policy transition and its impact on industries in West Bengal from 1987-2000.