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Fiscal Incentives of the Private Sector for Job Creation in Industry

In: Employment Policy in a Developing Country A Case-study of India Volume 1

Author

Listed:
  • N. J. Jhaveri

    (Industrial Credit and Investment Corporation of India)

Abstract

The emphasis on heavy industries in India’s five-year plans, together with the objective of industrial ‘self-reliance’, has led to vigorous promotion of investment in import substitution industries. To this end, various fiscal incentives linked to fixed capital have been introduced, especially by the central government. It is claimed that these incentives have encouraged capital-intensive rather than labour-intensive techniques of production, thereby undermining the objective of job creation in industries. Based on this argument, the abolition of all capital-linked incentives and the institution of generalised employment-linked incentives in their place is often advocated.

Suggested Citation

  • N. J. Jhaveri, 1983. "Fiscal Incentives of the Private Sector for Job Creation in Industry," International Economic Association Series, in: Austin Robinson & P. R. Brahmananda & L. K. Deshpande (ed.), Employment Policy in a Developing Country A Case-study of India Volume 1, chapter 14, pages 307-324, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-06267-6_15
    DOI: 10.1007/978-1-349-06267-6_15
    as

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