Course Instructor

Programme Course CodeCourse Title Semester

Dr. Rikil ChyrmangAssistant ProfessorDepartment of Economic Studies and PolicyCUSB

BABEd251Indian Economy: Problem and Prospects4th

Growth and Distribution in Indian Industry in the Nineties

Introduction:

In a study of the evolution of the Indian manufacturing sector over close to three decades wefind 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.

1. Output, Employment and Productivity

1. Output, Employment and Productivity

1. Output, Employment and Productivity

1. Output, Employment and Productivity

1. Output, Employment and Productivity

2. Profits and Investment

2. Profits and Investment

2. Profits and Investment

3. Wages and Distribution of Income

3. Wages and Distribution of Income

Conclusion

Conclusion

Conclusion It is concluded that closeness of the picture emerging from our

study to that envisaged in the version of the Cambridge growth model developed by Kaldor where faster growth driven by a higher sare of investment is financed automatically by rising profits. However, we wish not to push the analogy as growth theory mostly-works with one-good models of a closed economy.

The industrial economy of India is not self-contained in this way, being on the contrary, in constant interaction with the rest of the economy and via trade with the rest of the world. Nevertheless, we believe that we have identified the main ingredients of industrial development in the India since the initiation of reforms in 1991.