Industrial policy

Industrial policy is proactive government-led encouragement and development of specific strategic industries for the growth of all or part of the economy, especially in absence of sufficient private sector investments and participation. Historically, it has often focused on the manufacturing sector, militarily important sectors, or on fostering an advantage in new technologies. In industrial policy, the government takes measures “aimed at improving the competitiveness and capabilities of domestic firms and promoting structural transformation”. A country’s infrastructure is a major enabler of industrial policy.