Pattern of Industry Location under Liberalization: The Indian Experience (original) (raw)
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Journal of Research in International Business and Management, 1(7), 2011
The economic liberalization policy initiated since the early 1991 has made large-scale delicensing of industry and changes in the industrial location policies, and thus, curtailed the role of the state as industrial owner and location regulator. With the increasing dominance of private sector in industrialization under liberalization it is expected that industries will be more spatially concentrated in the leading industrial regions. However, the neoclassical principle suggests that in the long run “divergence is followed by convergence”. This is in contrast with the theory that raises the question about the regional industrial development in India under the two policy regimes. The main objective of the paper is to examine what happened to the location concentration of industries across the states in the post-liberalization period in India, and thus, understands the influence of economic liberalization on industrial location. This has been examined with the employment data of organized manufacturing sector for the pre- and post-reform periods by: first, looking at the trend of regional concentration of industries over the years, and second, looking at the regional industrial structure and the industrial diversification of regions during the pre- and post reforms periods. The findings suggest that concentration of industries has increased in the post liberalization period in India and the tendency to catch up the industrially developed states is hardly seen among the backward states.
Industrial Location in India under Liberalization
2009
The economic liberalization policy initiated in the country since 1991 has made large-scale delicensing of industry and changes in the industrial location policies along with the stabilization-cum-structural adjustments of the economy. This curtailed the role of the state as industrial owner and location regulator and increases the role of private sector in industrialization. With the increasing dominance of private sector in industrialization under the liberalization policy it is expected that industries will be more spatially concentrated in the leading industrial regions. However, the neoclassical principle suggests that in the long run “divergence is followed by convergence”. This is in contrast with the theory that raises the question about the regional industrial development in India under the two policy regimes (an inward looking restrictive policy regime prior to 1980s and liberalization policy since 1991). The main objective of our study is to see whether there is convergen...
South Asian Journal of Management, 21(4), 2014
The objective of this study is to examine the inter–state variation of unorganised manufacturing in India. Analysis has been carried out using unit–level data at three–digit industry level for 25 major Indian states for the period 1994–95 to 2005–06. The findings suggest that unorganised manufacturing continued to be concentrated in a few advanced states, while there is barely any improvement in the condition of the backward states. The high technology intensive industries are highly concentrated, whereas concentration is low for the resource–based low technology intensive industries. Spatial concentration has declined in the post–reform period for the overall unorganised manufacturing sector as well as for about two–third of the 55 three–digit industry groups. The findings raise a number of policy issues for regional industrial development in India. The paper emphasises the need for special policy attention to improvement of socio–economic infrastructure and investment climate in the backward states to enhance industrial development through attracting new investments.
On the Spatial Concentration of Unorganized Manufacturing in India in the Post-Reform Period
Productivity: A Quarterly Journal of the National Productivity Council, 54(2), 2013
This paper examines the spatial concentration of unorganized manufacturing in India before and after economic reforms. The findings suggest that the unorganized manufacturing has been concentrated in few advanced states and the situation has not changed even after economic reforms. Though spatial concentration has declined after reforms, but it takes place not because of improvement in the position of the lagging states, rather at the cost of the leading states, and hence, the decline can’t be considered as took place in the desired direction for balanced regional development. At the dis-aggregated industry level, the high- and medium-high technology intensive industries are highly concentrated, whereas the resource-based low-technology industries are relatively diversified across states.
Measuring the industrial concentration and dispersal of major Indian industrial states
Indian Journal of Economics and Development, 2019
Objectives: This study illustrates how major industrial states in India suffer with industrial disparity and centralization. Methods/Findings: We use two mathematical models: (1) Localization Coefficients to identify which major industries are suffering by industrial concentration and (2) Location Quotient which is a simple method for measuring regional industrial specialization. It shows us the propensity of industries for dispersal between the major Indian industrial states. The recommendations for policy makers through this research are that they can easily determine the lack of industrialization in a particular region and industry. Application: This research helps to understand that those regions are either less specialized regions or concentrated with few industries.
Spatial development of organized manufacturing industries across Indian States
The paper examines the nature and pattern of development of the Indian organised manufacturing industries across Indian states using the Annual Survey of Industries (ASI) plant level data. Four different indices of industrial concentration have been used to estimate the degree of agglomeration of industries. It has been observed that states with a large industrial base are also the hub of some of the highly polluting industries. The degree of industrial agglomeration has been observed to be higher in case of polluting industries as opposed to non-polluting industries in the year 2013-14. The degree of agglomeration economies of an industry has been observed to be affected by the spill over effect from the adjacent regions. While examining the pattern of spatial concentration of industries over time, the paper concludes that during the period of the analysis 2000-01 to 2013-14, the polluting industries have shown some dispersion both across states (captured by the LQ index) as well as in terms of plant level concentration within-in the same industry.
The Romanian Economic Journal, Vol. 14, 2011
Notwithstanding there has been voluminous concern among the researchers and policymakers, the theoretical predictions and empirical evidences regarding the impact of economic integration on spatial concentration of industries are ambiguous. The paper critically reviews the theoretical and empirical literature on the issue, and presents a case study for India. The findings suggest that following economic reforms in the early 1990s spatial concentration of manufacturing industries has declined in the early years (during 1993-94 to 1999-2000), but it has significantly increased in the last decade