IDEAS home Printed from https://ideas.repec.org/a/spr/jsecdv/v23y2021i1d10.1007_s40847-020-00131-z.html
   My bibliography  Save this article

Fiscal incentives and industrialisation: the case of Kachchh, Gujarat

Author

Listed:
  • Neeru Bansal

    (CEPT University)

  • R. Parthasarathy

    (Gujarat Institute for Development Research)

Abstract

Kachchh had suffered a major earthquake in 2001, resulting in extensive destruction of the area and a large number of fatalities. The economic activities had come to a standstill. In order to regenerate the economic activities and employment in the district, industrial development was promoted by offering fiscal incentives. The central government had extended a waiver of excise, and central sales tax and the State Government offered other significant fiscal benefits like waiving of state sales tax and extending capital investment subsidy. This paper describes the growth of the industry in the region during the incentive period. It explores if the location-based fiscal incentives have led to attracting investments to the region on a sustained fashion. The consequences of this development on the local livelihoods, employment and environment have also been studied. We have relied on personal interviews with various stakeholders, unpublished data from the industries department and other published data and literature for the analysis.

Suggested Citation

  • Neeru Bansal & R. Parthasarathy, 2021. "Fiscal incentives and industrialisation: the case of Kachchh, Gujarat," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(1), pages 71-92, June.
  • Handle: RePEc:spr:jsecdv:v:23:y:2021:i:1:d:10.1007_s40847-020-00131-z
    DOI: 10.1007/s40847-020-00131-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40847-020-00131-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s40847-020-00131-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lyla Mehta, 2011. "Experiences and Reimaginings of Development from a Kutchi Village," IDS Bulletin, Blackwell Publishing, vol. 42(5), pages 30-35, September.
    2. Sweta Byahut, 2014. "Post-Earthquake Reconstruction Planning Using Land Readjustment in Bhuj (India)," Journal of the American Planning Association, Taylor & Francis Journals, vol. 80(4), pages 440-441, October.
    3. Lahiri, Ashok K. & Sen, Tapas K. & Rao, Kavita R. & Jena, Pratap Ranjan, 2001. "Economic consequences of the Gujarat earthquake," Working Papers 01/1, National Institute of Public Finance and Policy.
    4. Montek S. Ahluwalia, 2002. "Economic Reforms in India Since 1991: Has Gradualism Worked?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 67-88, Summer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michele Peruzzi & Alessio Terzi, 2018. "Growth Accelerations Strategies," Growth Lab Working Papers 112, Harvard's Growth Lab.
    2. Bhattacharya, Mita & Narayan, Paresh, 2015. "Output and labor productivity in organized manufacturing: A panel cointegration analysis for India," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 171-177.
    3. Bhatta, Bibek & Marshall, Andrew P. & Neupane-Joshi, Suman & Thapa, Chandra, 2021. "Foreign Ownership and the Enforcement of Corporate Governance Reforms," QBS Working Paper Series 2021/02, Queen's University Belfast, Queen's Business School.
    4. Karthigai Prakasam Chellaswamy & Natchimuthu N & Muhammadriyaj Faniband, 2021. "Stock Market Reforms and Stock Market Performance," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(2), pages 202-209, April.
    5. Anil Nair & Mehdi Sharifi Khobdeh & Aydin Oksoy & Orhun Guldiken & Chris H. Willis, 2023. "A review of strategic management research on India," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1341-1392, December.
    6. Chari, Murali D.R. & Banalieva, Elitsa R., 2015. "How do pro-market reforms impact firm profitability? The case of India under reform," Journal of World Business, Elsevier, vol. 50(2), pages 357-367.
    7. Sathyajit R. Gubbi & Preet S. Aulakh & Sougata Ray, 2015. "International Search Behavior of Business Group Affiliated Firms: Scope of Institutional Changes and Intragroup Heterogeneity," Organization Science, INFORMS, vol. 26(5), pages 1485-1501, October.
    8. Eckhard Siggel, 2007. "Economic reforms and their impact on the manufacturing sector: lessons from the Indian experience," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 14(1), pages 73-104, June.
    9. Weilin Liu, 2022. "Did Trade Liberalization Boost Total Factor Productivity Growth in Manufacturing in India in the 1990s?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 43, pages 110-139, Fall.
    10. Sushanta Mallick & Helena Marques, 2008. "Passthrough of Exchange Rate and Tariffs into Import Prices of India: Currency Depreciation versus Import Liberalization," Review of International Economics, Wiley Blackwell, vol. 16(4), pages 765-782, September.
    11. Choorikkad Veermani, 2004. "Trade liberalisation, multinational involvement, and intra-industry trade in manufacturing," Indian Council for Research on International Economic Relations, New Delhi Working Papers 143, Indian Council for Research on International Economic Relations, New Delhi, India.
    12. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
    13. repec:kqi:journl:2018-2-1-2 is not listed on IDEAS
    14. Khundrakpam, Jeevan Kumar, 2008. "Have Economic Reforms Affected Exchange Rate Pass-Through to Prices in India?," MPRA Paper 51658, University Library of Munich, Germany, revised Apr 2008.
    15. Siddiqur Osmani, 2009. "Explaining Growth in South Asia," Chapters, in: Gary McMahon & Hadi Salehi Esfahani & Lyn Squire (ed.), Diversity in Economic Growth, chapter 3, Edward Elgar Publishing.
    16. Tommy Chrimes & Bram Gootjes & M. Ayhan Kose & Collette Wheeler, 2024. "The Great Reversal," World Bank Publications - Books, The World Bank Group, number 41403, April.
    17. Adams, Laurel & Régibeau, Pierre & Rockett, Katharine, 2014. "Incentives to create jobs: Regional subsidies, national trade policy and foreign direct investment," Journal of Public Economics, Elsevier, vol. 111(C), pages 102-119.
    18. Mathew, Jossy & Ogbonna, Emmanuel & Harris, Lloyd C., 2012. "Culture, employee work outcomes and performance: An empirical analysis of Indian software firms," Journal of World Business, Elsevier, vol. 47(2), pages 194-203.
    19. Bhattacharya, Mita & Okafor, Luke Emeka & Pradeep, V., 2021. "International firm activities, R&D, and productivity: Evidence from Indian manufacturing firms," Economic Modelling, Elsevier, vol. 97(C), pages 1-13.
    20. Hideki ESHO, 2008. "Comment on “The Political Economy of India's Economic Reforms”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 334-335, December.
    21. Barun Deb Pal & Jayatilleke S. Bandarlage, 2017. "Value-added disaggregated social accounting matrix for the Indian economy of the year 2007–2008," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-20, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jsecdv:v:23:y:2021:i:1:d:10.1007_s40847-020-00131-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.