Abstract: Here, the focus is on the industrial sector of the economy. It examines India's trade regulations that inhibited foreign trade in the 1980s and the attempts to deregulate the economy. It details the large public sector and the inefficacies within its operational structure. It examines the problem of sick companies unable to close because of state intervention and their takeover by the state. The limits imposed on privatization are also discussed.

Keywords: company laws, labour laws, liquidization/bankruptcy, privatization, state ownership,