This paper examines the likely developments on the industrial front on the basis of a diagnosis of recent economic developments. Special attention is paid to the possibility of an industrial recession emerging in 1975. The analysis indicates that while a generalised recession is unlikely to develop, the capital goods segment of the industrial sector is likely to be hit as a result of the prevailing economic conditions. Short term measures to deal with the problems posed by such a recession as well as the long term remedies for toning up industrial development have been proposed toward the end o the paper.