An Inter-State Perspective on Manufacturing Productivity in India: 1980-81 to 2000-01

Pushpa Trivedi
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Pushpa Trivedi: Indian Institute of Technology %G –%@ Bombay, Powai, Mumbai-400 076, India

Indian Economic Review, 2004, vol. 39, issue 1, 203-237

Abstract: Industrial performance of various states needs to be viewed in totality, i.e, with respect to growth of output, employment and productivity. Moreover, productivity levels are as important as productivity growth trends, as both are pertinent in the convergence process. This study is an attempt to interpret inter-state differences in productivity movements in organized manufacturing sector, in a larger perspective of employment and output trends. The time-span of the study is 1980-81 to 2000-01 and it encompasses 10 major states of India. The study empirically confirms the existence of inter-state differences in productivity levels and growth rates. It points out that states, such as, Bihar and West Bengal are diverging away from rather than converging to the growth rates of output of organized manufacturing sector at the national level. Though productivity growth in Bihar appears to be high, it has been mainly achieved by joblessness. Madhya Pradesh and Rajasthan, which have been considered as BIMARU states, seem to be good performers from a wider perspective and show the promise to get themselves rid of their economically backward status.

Keywords: Productivity; Manufacturing; Economic Reforms; Growth; India. (search for similar items in EconPapers)
JEL-codes: D24 O47 O53 (search for similar items in EconPapers)
Date: 2004
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