Private and Social Rates of Return in Indian Manufacturing

Manufacturing Deepak Lal This study on the private and social rates of return in Indian manufacturing industries shows that (a) there have been widely divergent social rates of return in different industries, (b) there is great variation in divergence between the private and the social rates of return of different industries, which cannot be explained as the result of any rational pattern of promotion of different industries, and (c) the average social (and private) rates of return in Indian industry have been declining.