Indian Industrialization (Economics: Volume 1)

338 Pages·2014·2.863 MB·English

by  C.P. Chandrasekhar

ECONOMICS
VOLUME 1
INDIAN INDUSTRIALIZATION

ICSSR Research Surveys and Explorations
ECONOMICS
VOLUME 1
INDIAN INDUSTRIALIZATION
edited by
C.P. CHANDRASEKHAR
1
1

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Contents
List of Figures and Tables vii
List of Abbreviations xi
Preface xv
1. Promise Belied: India’s Post-Independence
Industrialization Experience 1
C.P. Chandrasekhar
2. Regional Aspects of Indian Industrialization 48
Jayan Jose Th omas
3. Monopoly and Indian Industry 94
Surajit Mazumdar
4. Role of Foreign Direct Investment in India’s Industrial
Development 126
Rajiv Jha and R avinder Jha
5. Indigenous Technological Development and
Intellectual Property Rights in India’s Industrial
Development 164
Sudip Chaudhuri
6. Informal Sector Industry in India: A Brief Review 203
Jesim Pais
7. Employment and Industrial Development in India 229
Jeemol Unni
VI CONTENTS
8. A Survey on Corporate Saving, Corporate Tax
and Surplus 259
Atulan Guha
9. Trends and Patterns in Industrial Growth: A Review
of Evidence and Explanations 274
R. Nagaraj
Figures and Tables
FIGURES
2.1 Log Gross Value Added, Log Fixed Capital Stock, and
Employment in Numbers in India’s Factory Sector,
1959–60 to 2007–8 49
2.2 Shares of Diff erent Regions in Total Gross Value Added
by India’s Factory Sector, 1959–60 to 2007–08
(in per cent) 54
2.3 Shares of Diff erent Regions in Total Investment into
India’s Factory Sector, 1960–5 to 2003–8 (in per cent) 54
2.4 Shares of Western States and Southern States in Total
Employment and Gross Value Added by India’s
Factory Sector 56
2.5 Changes in Percentage Points of the Shares of Western
States in Gross Value Added, Employment and Fixed
Capital Stock in India’s Factory Sector, over the Decades 56
2.6 Rates of Growth of Gross Value Added and Fixed
Capital Stock in the Factory Sectors of Indian States,
1998–9 to 2007–8 70
2.7 Contribution of Indian States to the Growth of Gross
Value Added and Fixed Capital Stock in India’s
Factory Sector, 1998–9 to 2007–8 70
2.8 Log of Investment and Net Increase in Employment,
Factory Sectors of Major States and Union Territories,
1998–9 to 2007–8 81
viii FIGURES AND TABLES
2.9 Shares of West Bengal and Tamil Nadu in Total
Employment and Investment in India, 1960–5 to 2003–8 82
4.1 Share of Mergers and Acquisitions in FDI 138
4.2 Sales of Drugs and Pharmaceuticals 149
8.1 India’s Private Corporate Saving to GDP Ratio 260
8.2 Profi t, Savings, and Dividend Payment of India’s
Private Corporate Sector 261
9.1 India’s Share in World Exports: 1948 to 2010 278
9.2 Import Intensity of Capital Goods: 1971 to 2008 282
9.3 Public Sector’s Share in Total Industrial Output, 1961
to 2008 285
9.4 Share of Foreign Firms in Manufacturing and Private
Corporate Sectors 285
9.5 Average Factory Size in Factory Sector: 1960 to 2009 289
9.6 Size Distribution of Registered Factories: 1959 to 2007–8 290
9.7 Share of Top 100 Firms in GVA 294
9.8 Share of Top 100 Firms in Net Worth 294
9.9 Share of Top 100 Firms in Assets 295
9.10 Share of Top 50 Business Houses in GVA of the Private
Corporate Sector 295
9.11 Mean Hourly Compensation in the Manufacturing
Sector as a Per Cent of Corresponding Costs in the
United States: 2002 to 2005 305
TABLES
2.1 Annual Rates of Growth in Gross Value Added, Fixed
Capital Stock, and Employment in India’s Factory
Sector, 1959–60 to 2007–8 49
2.2 Shares of Diff erent Regions in India’s Factory Sector
for Various Years (in per cent) 52
2.3 Workers in India’s Manufacturing Sector, State-wise,
2009–10 58
2.4 Manufacturing Enterprises and Workers in Indian
States, 2005–6 59
FIGURES AND TABLES ix
2.5 Industrial Structures of Selected States: Shares of
Industries in Gross Value Added by the Factory Sectors
of the States (structure) and Shares of States in Gross
Value Added by the Industry in India (share), 2005–6 61
2.6 Industry-wise Unorganized Manufacturing Enterprises
in Selected States: Shares of Industries in the Total
Number of Enterprises in the States (structure) and
Shares of States in the Total Number of Enterprises
in the Industry in India (share), 2005–6 64
2.7 Shares of Selected Indian States in Total FDI Approvals,
Total IT Soft ware and Services Exports, and Total
Population of India 71
2.8 Net Increase in Factory-sector Employment in Indian
States over the Decades 75
2.9 Net Increase in Employment across Indian States,
1993–4 to 2009–10 76
2.10 Per capita Income, Wages of Factory Workers,
and Wages of Rural Male Casual Workers in Indian
States in 2009–10, as Indices with Index for India
as a whole = 100 77
2.11 Contract Workers, Man-days Lost due to Industrial
Disputes, and Registered Trade Unions, across
Indian States, 2006–7 78
3.1 Share of Large Enterprises in the Aggregate Assets
of the Private Corporate Sector, 1964 and 1966 105
3.2 Share of Large Enterprises by Diff erent Criteria in
Size Aggregates of Private Corporate Sector, 1990 106
3.3 R&D Intensity of Indian Business Groups and
Independent Companies, 2008–9 115
4.1 Foreign Investment Infl ows 128
4.2 India and China: Shares in the FDI Flows to
Developing Economies 129
4.3 India and China: FDI Infl ows as a Proportion of
Gross Fixed Capital Formation 129
4.4 Sectoral Allocation of FDI 131
4.5 Foreign Collaboration Approvals (1948–90) 131
x FIGURES AND TABLES
4.6 Total Foreign Technology Agreements and Foreign
Direct (Equity) Investment Approvals 133
4.7 Composition of FDI 136
4.8 India and China: Shares of M&As in the FDI Infl ows 137
4.9 Changes in Sectoral Composition of FDI Stock
in 1990s 140
4.10 Sectoral Allocation of FDI, August 1991 to
December 1999 141
4.11 Sectoral Allocation of FDI, January 2000 to
December 2010 141
4.12 Trends in Foreign Infl ows for Select FDICs 145
4.13 Drugs and Pharmaceuticals, 1991–2010 150
4.14 Production (P), Export Intensity (X/P), and FDI of
the Indian Car and Auto Component Industry 152
4.15 Shares of Major Firms in the Car Market 155
4.16 Th e Auto Components and Machine Tool Industries:
Net Exports, Imports, and Import Penetration 156
9.1 Long-term Growth Rates of Indian Economy and
Its Principal Sectors: 1951 to 2010 275
9.2 Distribution of Employment in Manufacturing Sector 278
9.3 Sectoral Distribution of Labour Force: 1951 to 2009–10 279
9.4 Composition of Manufacturing Value Added: 1960–1
to 2008–9 281
9.5 Weighting Diagram of Index of Industrial Production
(IIP): 1956 to 2004–5 282
9.6 Unregistered Sector’s Share in GDP in Manufacturing,
1960–1 and 2008–9 283
9.7 Industry Groups with Above Average Share in
Unregistered Manufacturing 284
9.8 Export Composition according to Factor Intensity 286