Sources of Growth in Indian Iron & Steel Industry

The present study makes an attempt to assess, in quantitative terms, the contributions made by various factors to the observed rate of growth of Indian iron & steel industry during the post-war period. The analysis is conducted within the broad framework provided by the well-known neo-classical model. The analysis is based on the time series data covering the period 1946-70, obtained from the annual reports of GMI and ASI. The main conclusions of the study are that the growth of Indian iron & steel industry during the post-war period has been due largely to the growth of factor inputs; and the behavior of the residual factors does not seem to have played any positive role in bringing about the acceleration in the growth of iron & steel industry observed during the sixties. The major policy implication of these findings is that more attention needs to be paid to the research and development programmes specifically designed to improve the technological base of the Indian iron & steel industry and promote the growth of total factor productivity in the industry during the years to come.