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

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Size and Growth of Private Corporate Sector in Indian Manufacturing

Using information from the National Accounts Statistics and Annual Survey of Industries, this paper examines the performance of the corporate sector vis-à-vis the public and the household sectors in manufacturing during the period 1973-74 to 2007-08. The share of the corporate sector in industry characteristics such as number of employees, total emoluments, gross output and value added has increased since the early 1990s, with a corresponding decline of the public sector. Moreover, in absolute terms, the manufacturing GDP of the corporate sector grew at a faster rate compared to the public and household sectors since 1999-2000. Indian manufacturing is thus increasingly being led by the private corporate sector. However, the share of compensation to workers and employees in corporate income has steadily declined, pointing to the limited benefits accruing to employees from corporate growth.

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Size and Growth of Private Corporate Sector in Indian Manufacturing

J Dennis Rajakumar

Using information from the National Accounts Statistics and Annual Survey of Industries, this paper examines the performance of the corporate sector vis-à-vis the public and the household sectors in manufacturing during the period 1973-74 to 2007-08. The share of the corporate sector in industry characteristics such as number of employees, total emoluments, gross output and value added has increased since the early 1990s, with a corresponding decline of the public sector. Moreover, in absolute terms, the manufacturing GDP of the corporate sector grew at a faster rate compared to the public and household sectors since 1999-2000. Indian manufacturing is thus increasingly being led by the private corporate sector. However, the share of compensation to workers and employees in corporate income has steadily declined, pointing to the limited benefits accruing to employees from corporate growth.

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