IS THE MANUFACTURING SECTOR
IN INDIA AN ENGINE OF GROWTH?Kaliappa Kalirajan
Abstract
Manufacturing has been an engine of growth in India in the seventies and eighties. After the 1991 economic reforms the engine appears to be slowing. This paper attempts to examine the reasons. The analysis reveals that manufacturing output growth in the post-reform period is ‘inputs driven’ rather than efficiency driven. The paper advocates policies to improve production efficiency through encouraging firms to invest more in R&D, technical training for workers, and technology-aided managerial processes.