As regards the industrial policy of India, it is observed the new world war, the country can achieve and retain its economic independence only trough its indigenous economic strength. This can be derived from the inherent ability of Indian Industry to meet international completion on its own terms, namely, quality, price and services. State control and intervention in the trade, commerce and other economic activities needs to be drastically reduced to improve the efficiency and productivity of Indian Economy. In select cases, independent regulatory bodies may be entrusted with the task of orderly development of such industries. The industry has grown at the rate of 9% to 10% during the last 2 years. It is now facing serious financial problems to maintain its growth and competitiveness due to dormant capital market on the hand and high interest rate and difficulties in getting adequate funds. The economic reform is to bring about rapid and sustained improvement in the quality of life of the people of India. Central to this goal is the rapid growth in incomes and productive employment. Hundreds of millions of our people are still trapped in object poverty. The only durable solution to the course of poverty is the sustainable growth and development. Such growth requires investment is famous in roads in irrigation, in industry, in power and above all in people and his investment must be productive, successful and sustained development depends on continuing increases in the productivity of our capital our land and labour.