The study looked at how India's industrial policy affected firms' innovation. They found that bigger and more productive companies in industries that were opened up by the policy were more likely to invest in research and development. On the other hand, smaller and less efficient firms were less likely to innovate. This inequality was most pronounced in economically weaker states with less financial support and knowledge resources. In summary, the business environment plays a big role in how different firms respond to policy changes, benefiting larger and more efficient companies.