What Constrains Indian Manufacturing

Poonam Gupta

Working Papers from eSocialSciences

Abstract: India has undertaken extensive reforms in its manufacturing sector in the last two decades. However, an acceleration of growth in manufacturing, and a concomitant increase in employment, has eluded India. What might be holding the sector back? Using Annual Survey of Industries data at the three-digit level and difference in estimates this paper finds that the post-reform performance of the manufacturing sector is heterogeneous across industries. In particular, industries dependent on infrastructure or external finance, and labour-intensive industries have not been able to reap the maximum benefits of reforms. The results point to the importance of infrastructure development and financial sector development for the manufacturing sector’s growth to accelerate further. They also emphasize the need to clearly identify and address the factors inhibiting the growth of labour-intensive industries.

Keywords: De-licensing; external finance dependence; infrastructure intensity; labour (search for similar items in EconPapers)
Date: 2008-08
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

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Working Paper: What Constrains Indian Manufacturing? (2008)
Working Paper: What Constrains Indian Manufacturing? (2008)
Working Paper: What Constrains Indian Manufacturing?
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