Performance of Manufacturing Economy in India: During the Last Four Decades
The peninsular India is one of the fast growing economies in this world. The industrial sector of India is a Kaleidoscope, undergoing growth, structural change and policy renovations after independence. Against the backdrop, the present paper is an attempt to find out the growth spectrum of industrial sector of India in terms of output and employment. To assess the performance of these factors annual time series data have been drawn from the Annual Survey of Industries (ASI) published by the Central Statistical Organization, Government of India, for the period from 1973-74 to 2012-13. Further, necessary information has been collected from the Handbook of Statistics on Indian Economy, published by the Reserve Bank of India, and Economic Survey, published by Indian Ministry of Finance. To find out the effect of new economic policy in the growth of output and employment, the study period is classified into two folds, the pre-reform period covering the period from 1973-74 to 1990-91 and the post-reform, which includes the period from 1991-92 to 2012-13 and annual compound growth rate is applied to obtain prolific result. This study came out with the results that most of the industries attained a substantial growth in the pre-reform period in terms of output, but modern industries (except textiles) experienced perceptible growth in the post-reform period. Outrageously, most of the industries experienced a minusculeor negative growth in the post-reform period in the case of employment. In a developing country like India already suffering due to insufficient dose of physical and human capital, lack of research and development and over population, policy makers should frame suitable policies considering the consistent output and employment generation as both are directly correlated -with social welfare.
Industrial Development, Indian Industries, Employment, Output, Industrial Policy, Growth Performance, and Composition of Industries
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