Define industrial sickness. Briefly discuss the impact of industrial sickness on Indian economy

Industrial Sickness and Its Impact on the Indian Economy

Definition of Industrial Sickness: Industrial sickness refers to a condition in which a business enterprise, especially in the manufacturing sector, faces severe financial distress, operational inefficiencies, and an inability to meet its financial obligations, ultimately leading to its decline and potential closure. Industrial sickness is often characterized by a continuous decline in production, sales, profitability, and liquidity, resulting in a state of insolvency and unviability. This phenomenon can arise due to various factors such as poor management practices, technological obsolescence, unfavorable economic conditions, inadequate infrastructure, and policy-related issues.

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