In the modern world, growth as well as the developmental process of an economy depends mainly on the industrial development. Hence, the rate of growth of the economy mainly depends on the Industry Policy of a country.
Industry Policy is basically a set of instructions, laws and regulations which are formulated on the basis of the requirements and priorities of an economy by the ruling power in the government. This policy decides the course of action on different sectors of the industry of the economy. Industry Policy is regarded as the guideline for either encouraging/discouraging some ongoing/new industrial/investment related decisions on a specific/different industries.
In almost all of the countries in the modern world it has been seen that the pure form of lessaize faire or socialistic pattern of Industry Policy are non-existent. This has been over-powered by the mixed economy form where market economy go on hand-in-hand with the government intervention in certain aspects. Government action materializes in the form of tax, differential rate of tax on different heads and sections, tariffs, subsidies, quotas, etc.