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
Industrial Economics
Industrial Development
Industrial Policy
Technology assessment
Capital market
Developing countries
Market share
Labor
Technology transfer
Cumulative effects assessment
Job analysis
Task analysis
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http://hdl.handle.net/11540/1775Metadata
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