What Constrains Indian Manufacturing?
Gupta, Poonam; Hasan, Rana; Kumar, Utsav | August 2008
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 3-digit level,
and difference in differences estimates, this paper finds that the postreform
performance of the manufacturing sector is heterogeneous across industries. In
particular, industries that were dependent on infrastructure or external finance
and were labor-intensive 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 labor-intensive industries.
Citation
Gupta, Poonam; Hasan, Rana; Kumar, Utsav. 2008. What Constrains Indian Manufacturing?. © Asian Development Bank. http://hdl.handle.net/11540/1775. License: CC BY 3.0 IGO.ISSN
1655-5252
Keywords
Commerce and Industry
Intra-Industry Trade
Large Scale Industry
Labor
Technical Evaluation
Results-Based Monitoring And Evaluation
Performance Evaluation
Industrialization
Show allCollapse
Citable URI
http://hdl.handle.net/11540/1775Metadata
Show full item record
Users also downloaded
-
Country Safeguard Systems Regional Workshop Proceedings: Towards Common Approaches and Better Results
(Asian Development Bank, 2012-06-30)This publication records the proceedings of the Country Safeguard Systems (CSS) Regional Workshop on April 2012 at the ADB headquarters. Discussions focused on the evolution, current status, and future directions of CSS, and the CSS partnership between ... -
Climate Change, Food Security, and Socioeconomic Livelihood in Pacific Islands
(Asian Development Bank and International Food Policy Research Institute, 2015-10-06)This report assesses the impact of climate change on agriculture and fisheries in three Pacific Island countries, including the impacts on agricultural production, economic returns for major crops, and food security. Alternative adaption policies are ... -
Cross-Border Power Trading in South Asia: A Techno Economic Rationale
(Asian Development Bank, 2015-08-28)Diversity in primary energy sources in South Asian countries and their electricity demand patterns both time-of-day as well as across different seasons open up opportunities for greater use of cheaper and cleaner resources for electricity generation ...