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Abstract
The present study endeavors to analyze the productivity growth and performance analysis of Indian manufacturing sector at inter-state level by taking into account the entire study period of 35 years from 1980-81 to 2014-15 and three distinct sub- periods. The comparison of partial productivities between pre-reforms and post-reforms periods reveals that the liberalization, privatization and globalization (LPG) process has failed to bring any significant dent in the performance of labour productivity and capital productivity growth of Indian manufacturing sector. Further, the results reveal that the manufacturing sector of India has not assumed the role of a major contributor in state’s income over the last three decades as the contribution varies between 3 and 31 percent across the states during the period considered under study. Manufacturing sector in India still continues to be concentrated in a few states (like Gujarat, Haryana, Tamil Nadu and Maharashtra) despite successive changes in trade regimes. In case of employment, Tamil Nadu represents itself as the gainer as its share increasing substantially while three states ( Uttar Pradesh, Bihar and West Bengal) witnessing decline in their share in total manufacturing employment. In case of total investments, the reforms package planned to unshackle centrifugal forces to spread the actual investments to new destinations does not seems to have yielded the desired results in these states.