State of industries in India on the eve of independence is explained below
(i) The role of the public sector in development of industries was restricted to the railways, power generation, communications, ports and some other departmental undertakings. There was no growth of industrial base in India.
(ii) The traditional handicraft industries were decaying.
(iii) There were hardly any capital goods industries to promote further industrialisation, since the British had no interest in the development of Indian economy.