Inter-State Variation in Unorganised Manufacturing Industries in the Post-Reform India

Abstract

The paper aims to analyses the regional pattern of unorganized manufacturing industries in India in the post-reform period. We find that the unorganized manufacturing industries continued to concentrate in few advanced States, whereas the backward States have been unable to catch up. The high-technology intensive industries are highly concentrated, whereas concentration is low for the resource-based low-technology intensive industries. Spatial concentration has declined across States in the post-reform period There appears, however, to be widespread inter-state disparity in terms of factor productivity and it has increased in the post-reform period. The findings of the paper raise a number of policy issues for regional industrial development in India. The paper emphasizes the need for proactive public policy to promote socio-economic infrastructure, reformatting local politics to ensure better governance, creation of enabling institutional base to support business environment to attract new investments and a strong political commitment among the local leaders to create necessary environment for growth in the backward States, and thus, achieve inclusive growth.