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Small-Scale Industries in Indian Economy: A Quantitative Appraisal

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  • Annapurna Dixit
  • Alok Kumar Pandey

Abstract

The major thrust of the present paper is to evaluate the performance of the Small-Scale Industries (SSI) as well as productivity of labor and capital in this sector, for the period 1973-2006. The average annual growth rates of total production, exports, employment and investment in the SSI and the number of SSI units during the period 1973-2006 are estimated using the OLS method on the time series data. The average annual growth rates for the subperiods, 1973-80, 1981-90, 1991-2000 and 2001-2006, are estimated by incorporating slope and intercept dummy variables. The paper also estimates the marginal productivity of labor and capital in the SSI sector. The findings of the present study are quite interesting. Results reveal that marginal productivity of labor in SSI is positive and highly significant during the study period.

Suggested Citation

  • Annapurna Dixit & Alok Kumar Pandey, 2009. "Small-Scale Industries in Indian Economy: A Quantitative Appraisal," The IUP Journal of Financial Economics, IUP Publications, vol. 0(2), pages 91-108, June.
    • Handle: RePEc:icf:icfjfe:v:07:y:2009:i:2:p:91-108
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