Exit Policy and its impact on Increasing Inefficiency in Indian Economic System

The expression 'Exit Policy' has gained much currency in India since the second half of 1991. Exit policy is an important element of structural adjustment programe for Indian economy. To some in meant that the title of policy yet to be formulated to others, a sanctions to demand legislative changes in employment security provisions; to yet others, it meant creations of safety nets and mobilization of resources to fund separation costs as a price for mitigating potential upheaval. India is famous for having many sick industries but no sick industrialists. This paper deals with how in availability of proper and easy exit norms are degrading the working of current economic system and the effectiveness of measures taken by government in recent times.