Abstract
The article provides a broad overview of the industrial location policy in India since Independence. In India, the glaring regional imbalances and inequalities have arisen through a complex set of historical, socio-economic, demographic and cultural factors. The pre-reform approach to industrial location policy involved top-down identification of lagging areas and targeting them with interventionist and regulatory measures. In the post-reform period, the process of liberalisation has curtailed the role of government as industrial owner and location regulator, and restricted policy space. Thus, the focus shifted to a targeted approach and subnational strategies. Package for industrial development are in operation for the special category states, namely northeastern states, Jammu and Kashmir (J&K), Himachal Pradesh and Uttarakhand. In other regions, the development of industries adopted a cluster development approach. However, the peripheral lagging regions continue to stagnate despite the industrial location policy having tried virtually everything. The persistently growing regional disparity in post-reform period is a matter of grave concern.
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