One cannot over-emphasise the crucial importance of rapid growth of exports for the success of our programmes of industrial development and, indeed, for the very viability of the economy. Exports must increase at an accelerated rate to provide for a larger inflow of imports of materials, intermediates and specialised equipment which will sustain a higher rate of growth of industrial output. However, faster growth of exports will materialise only if we radically change our attitudes and outlook. The development of export markets and the adaptation of products to the requirements of potential foreign buyers must constitute an integral part of the long-term plans of well-endowed and experienced industrial firms and units. We should not be lured away from venturing farther into the export field by the flabby security offered by a cosy home market. For, in the longer run only a healthy export performance can ensure the vigour and dynamism of our industrial structure; and an outward looking industry will be our best guarantee against import shortages, inefficiency and technological stagnation.
The process of industrial growth and development in the past was accompanied not only by the concentration of economic power which prevented a wider diffusion of entrepreneurship but also the concentration of new industrial units in and around the already developed areas which aggravated the problem of regional imbalances. The Government in the recent years has attempted to check and to reverse such unhealthy trends through a series of policy measures. The industrial licensing policy has undergone a major overhaul : it has been liberalised to facilitate new entry in the small and medium scale sectors; the expansion and diversification of large industrial houses have been brought under regulation to prevent excessive concentration of economic power in private hands; the product area reserved for small scale industry has been significantly enlarged. The flow of working capital loans and term credit is also being channelled towards the smaller entrepreneurs and relatively less developed regions. Incentives have been provided to make industrial investment in relatively backward areas more attractive.