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

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Technical Change in India’s Rural Organised Manufacturing Industries

Given the robust performance of India’s rural organised manufacturing industries in recent times, this study attempts to understand the nature of the technical change underlying it. Felipe and Kumar’s (2010) analytical framework is used to assess the direction of technical change in India’s rural industries in the period 1998–99 to 2016–17. The findings indicate that the direction of technical change was Hicks-neutral from 1998–99 to 2007–08 and Marx-biased from 2008–09 to 2016–17. At the disaggregated level, various industries exhibited diverse directions of technical change. The high growth seen in the economy in the first decade of this century was accompanied by a sustained rise in capital productivity. This ended subsequently, which contributed to a slowing down of the growth rate.

Urbanisation and Development of Rural Small Enterprises

This article attempts to seek a relationship between urbanisation and the development of small rural firms, using West Bengal as a case study. Small industrialisation is found to be directly related to the degree of urbanisation, and there is a clear urban concentration of small enterprises in West Bengal. Infrastructure and services are mainly confined to a small region and rural industrialisation has not been promoted. Government investment on rural infrastructure is essential to promote the rural non-agricultural sector in the backward districts.
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