ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Challenges in the Return of Industrial Policy

Industrial policy seems to be attempting a comeback to the centre stage of policy discussions. In a given milieu of global economic conditions, it offers opportunities for developing economies to restructure production. The challenges, however, are multiple, necessitating a move away from conventional policy paradigms and towards a set of forward-looking, futuristic elements.

Market Power and the Macroeconomy

Implications of the persistence of market power in the economy are not limited to higher prices. It has ramifi cations on income distribution, demand, and industrial performance. While higher prices are a visible outcome of the exertion of market power, other latent effects need a closer empirical scrutiny. The role of large conglomerates in shaping India’s industrial performance needs to be analysed against this backdrop.

Durable Growth Revival

The recent growth recovery has been uneven as is visible across different sectors of the economy and different segments of the population. This unevenness is hurting the consumption of lower-income households and private investments, which are vital for sustained or durable growth.

Reviving Industrial Growth

The Indian economy faces an uphill task of reviving industrial growth in the post-pandemic scenario. The early onset of domestic slowdown and global disruptions have affected the industrial sector, both in terms of demand and supply factors. What is required at this juncture is not a set of scattered short-term policies, but a coherent heavy lifting of the sector through demand injection and stimulation, because the slowdown started much earlier and is structural in nature.

Vision for Industrial Growth in Budget 2019–20

The budget articulates a vision for the growth of the manufacturing sector which is built on three pillars: (i) increase in investments, private investments in particular, (ii) enabling of conditions for small firms to grow and move into the next strata, and (iii) enhancement of the rate of growth of exports. However, as it turns out the vision has been clouded by some illusions. The challenge of growth acceleration of the industrial sector is confounded by the fact that factor augmentation is at a slow pace despite an increase.

The Politics of Urban Mega-projects in India

Mega infrastructure projects such as industrial parks and special economic zones are increasingly seen as a means to jump-start urban economies in India. This paper contributes to understanding the politics of urban mega-projects by examining the quality of local economic linkages of an information technology park, located in what is popularly referred to as the "IT corridor" in Chennai. Based on a survey of employees in software firms and support services for IT parks along the corridor, the paper maps patterns of employment creation, new consumption and mobility patterns of those employed in the IT parks and implications for the quality of urban development.

Fiscal Sustainability of Tamil Nadu

The paper by Elena Ianchovichina et al (December 29, 2007) presented a framework for subnational fiscal sustainability analysis and applied it to Tamil Nadu. However, the empirical application presented is unclear and so raises doubts on the veracity of their projections of the future. The recent trends in the state's fiscal situation do not corroborate their analysis and conclusions.

Trends in Savings, Investment and Consumption

This article reviews the quick estimates of savings, investment and consumption released by the Central Statistical Organisation in the National Accounts Statistics 2007. It is clear that both savings and investment have risen sharply in the past two years, but there remain some concerns about the trends.

Kerala's Growth Trajectory

M SURESH BABU Recent discussions on the growth ex-perience of Kerala have evoked considerable interest among development economists. Two papers portraying Kerala

Growth and Distribution in Indian Industry in the Nineties

In a study of the evolution of the Indian manufacturing sector over close to three decades we find the annual average rate of growth in the nineties to have risen almost across the board at the two-digit level of industry. Nevertheless, the acceleration is not particularly impressive for what is often hailed as the most significant policy-regime shift since 1950. There is a hefty rise in investment, however, though without a corresponding increase in its efficiency. And distribution has shifted sharply with labour's share declining. This paper attempts to link these developments in a coherent way.

World Bank-CII Study on Competitiveness

The study should be seen as one of the first attempts to define and legitimise the second generation of economic reforms. However, the narrow definition of 'investment climate' employed in the study excludes several important factors that govern competitiveness, such as social infrastructure.

Trade Liberalisation and Productivity Growth in Manufacturing

Using panel data comprising firm-level information drawn from groups within manufacturing industry which have experienced the most significant tariff reduction, this study investigates the trend in productivity growth since 1988-89. The sample of 2,300 firms and 11,009 observations, spanning the period 1988-89 to 1997-98 is very likely the largest assembled for the purpose thus far. We find no evidence of acceleration in productivity growth since the onset of reforms in 1991-92. The result is evaluated in relation to the changes till date in the policy regime in the Indian economy.


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