In Parts I and II of the study we had examined the nominal and effective
rates of protection accorded to Indian industries by the tariff system. Among the various
issues examined were the level of protection and the inter-industry pattern. This part of
the study is concerned with the effect of tariff on domestic industries.
In Section 2, some theoretical issues concerning the effect of tariff on domestic
industrial production are discussed. Section 3 presents a brief review of the available
literature on the effect of protection on India’s industrial performance. In Section 4,
results of our empirical analysis are presented. Section 5 summarizes and concludes.