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Industrial Sickness in India: Dimensions, Threats, and Remedies

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  • B K Singh

Abstract

Industrial sickness is one of the most complex problems of the Indian economy. Inspite of the different measures taken by the Government the problem persists. The rise has remained unabated, even in the years after the passage of the Sick Industrial Companies Act (SICA) and the creation of the Board for Industrial and Financial Reconstruction (BIFR). The study reveals that sick units have not only lost their net worth, but they have also lost capital raised from sources other than ownership. The extent of accumulated losses of sick units in India, is about two times that of the net worth of the sick units. The study reveals the failure of the policies in controlling industrial sickness in India, and puts forward certain suggestions to revamp the policy framework so as to effectively tackle the problem.

Suggested Citation

  • B K Singh, 2007. "Industrial Sickness in India: Dimensions, Threats, and Remedies," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(2), pages 63-88, May.
    • Handle: RePEc:icf:icfjme:v:05:y:2007:i:2:p:63-88
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