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Structure and Growth of Industry

What has been the effect of economic liberalisation on industry? Has it helped to accelerate industrial growth? This paper is an attempt to address these issues in the context of Andhra Pradesh. Against the backdrop of the focus of the Vision 2020 document in respect of industry, the growth and composition of the factory sector in Andhra Pradesh are presented and the performance of the sector in the pre- and post-liberalisation

Industrial Growth and Structure

Maharashtra occupies a very significant position as far as the manufacturing sector in India is concerned. However, since 1970s the share of the secondary sector in the State Domestic Product has been stagnating around 33 to 34 per cent. Further, the state is experiencing significant changes in the industrial composition wherein capital and intermediate goods industries are becoming dominant. The manufacturing sector is itself undergoing major structural changes. Over the period 1979-80 to 1994-95 the state realised a high growth rate in fixed capital resulting in decrease in employment. The rising capital intensity and thereby substitution of capital for labour, low growth rates of output and value added, all do not indicate satisfactory performance of the state on the industrial front. However, there is a revival in the manufacturing sector in post-reform period.
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