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The Post-reform Performance of the Manufacturing Sector in India

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Author Info
Kaliappa Kalirajan (Foundation for Advanced Studies on International Development National Graduate Institute for Policy Studies (FASID/GRIPS) 2-2, Wakamatsucho Shinjuku-Ku Tokyo 162-8677 Japan,)
Shashanka Bhide (National Council of Applied Economic Research 11 I.P. Estate New Delhi 110002 India, and Institute for Social and Economic Change Nagarabhavi Bangalore 560072 India)
Abstract

Manufacturing played an important part in sustaining India's economic growth in the 1970s and 1980s. The economic reforms of the early 1990s did not lead to sustained growth of the manufacturing sector. After an acceleration in the mid-1990s, growth slowed in the decade's second half. The analysis presented in this paper reveals that manufacturing-sector growth in the postreform period is "input driven" rather than "efficiency driven," with significant levels of technical inefficiency. The paper advocates policies to improve production efficiency by encouraging investment in research and development, technical training for workers, and technology-aided managerial processes. Copyright (c) 2005 The Earth Institute at Columbia University and Massachusetts Institute of Technology.

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Article provided by MIT Press in its journal Asian Economic Papers.

Volume (Year): 3 (2004)
Issue (Month): 2 ()
Pages: 126-157
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Handle: RePEc:tpr:asiaec:v:3:y:2004:i:2:p:126-157

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  1. Bhaumik, Sumon K. & Kumbhakar, Subal C., 2008. "Impact of Reforms on Plant-Level Productivity and Technical Efficiency: Evidence from the Indian Manufacturing Sector," IZA Discussion Papers 3347, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Mishra, SK, 2006. "Globalization and Structural Changes in the Indian Industrial Sector: An Analysis of Production Functions," MPRA Paper 1231, University Library of Munich, Germany. [Downloadable!]
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