Why has the industrial sector performed poorly in the reform period?
The industrial sector has recorded a slowdown in growth during the reform period due to several reasons.
Firstly, there has been a decreasing demand for industrial products. In a globalised world, developing countries were compelled to open up their economies to greater flow of goods from developed countries. This rendered domestic industries vulnerable to imported goods.
Secondly, cheaper imports have replaced the demand for domestic goods. Domestic manufacturers are now facing stiff competition from these imports, which has adversely affected their performance and employment opportunities in the country.
Thirdly, infrastructure facilities, including power supply, have remained inadequate due to lack of investment. This has hindered the growth and efficiency of industrial units.
Thus, globalisation created conditions for the free movement of goods and services from foreign countries, which adversely affected local industries in developing countries like India.
Explanation
The answer is derived directly from the textbook context under 'Reforms in Industry'. The key reasons identified are: (1) decreasing demand due to cheaper imports replacing domestic goods, (2) inadequate investment in infrastructure facilities like power, and (3) vulnerability of domestic industries in a globalised world. The answer follows the 5-mark format with 4 paragraphs and uses bold terms for emphasis as per the marking scheme requirements.