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

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Leaving Labour?

This article surveys recent development in Indian employment relations, broadly defined, from the perspective of a visiting British academic. The author finds traditional academic industrial relations, centred on trade unions and collective bargaining, in decline as globalisation, the new economy and the expansion of business schools and disciplines reshape the study of Indian work and employment. The article discusses the emergence of human resource management as a potentially managerial and individualist alternative to critical, labour-sympathetic intellectual traditions. The author discerns hope for the future in the strong Indian traditions of labour history and labour economics, while stressing the need for a strong critical, empirical sociology of work that can establish what the new Indian workplace(s) are really like.

Foreign Ownership and Subsidiary Performance: Impact on Research and Exports?

In the mainstream international management literature the issue of the extent to which multinational corporations achieve the outcomes desired by host country stakeholders is yet to receive the attention it deserves. This paper shows that the contribution of mncs in the form of exports and royalties is significantly lower than that of local firms. Insufficient attention to local subsidiary interests may undermine the motivation of subsidiary managers to discover new sources of advantage for the mncs. It may also discourage subsidiary country governments from offering incentives to mncs for inward foreign direct investment.

Concentration-Markup Relationship in Indian Manufacturing Sector

While the positive relationship between market concentration and price-cost margin or profitability is well documented in industrial organisation literature, the present paper makes an attempt to examine the concentration-markup relationship in Indian manufacturing sector in the post-liberalisation era using dynamic panel data model. It is observed that the traditional positive concentration-markup relationship does not hold in a dynamic context, when controlled for various structural aspects of the market, firms' strategies and policies of the government. In other words, industries with greater market concentration do not necessarily enjoy higher pcm in the long run, possibly due to entry of new firms, x-inefficiency of the incumbents and deceleration in industrial production.

Bringing Academic Rigour to the Field of Entrepreneurship in India

Though India has a good number of Schumpeterian entrepreneurs who have made the country a frontrunner in information technology, the country also has a large number of micro and small enterprises which have not been growing much but account for about 90 per cent of total employment. Hence, from the policymaking perspective it is essential to figure out what needs to be done on one side to create more Schumpeterian entrepreneurs for more wealth creation, and on the other side to improve performance of non-entrepreneurial small businesses.

Trends and Perspectives on Corporate Mergers in Contemporary India

The corporate sector in India has witnessed a substantial growth of mergers and acquisitions since the 1990s. Through the first wave of M&As (1990-95), the Indian corporate houses seem to have been bracing up to face foreign competition, while the second wave (since 1995) saw a significant involvement of multinational firms. The macroeconomic policy changes in India facilitated the third wave of merger movement since 2000 - i e, overseas acquisitions by the Indian firms. A large number of mergers were between firms belonging to the same business groups and product lines with a view to increase their respective controlling blocks and market power. The performance of acquiring firms in 1990-2005 was relatively better as compared to that of the Indian private corporate manufacturing sector. However, this study does not find significant evidence of improvement in their performance in terms of various parameters during the post-merger phase as compared to the pre-merger period. The study argues that it is not efficiency-related factors that influenced M&A activities in the Indian corporate sector. An appropriate competition policy needs to be designed so as to address the possible anti-trust implications of overseas mergers for India, as well as to deal with M&As among Indian enterprises.

Type of Merger and Impact on Operating Performance: The Indian Experience

Mergers and acquisitions are being increasingly used the world over as a strategy for achieving larger size, faster growth in market share and reach, and for becoming more competitive through economies of scale. This paper has attempted to study the impact of different types of mergers on the operating performance of acquiring/merging corporates in India in the post-economic reforms period of 1991-2003, by examining some pre- and post-merger financial ratios, in the sample of firms involving all mergers by public limited and traded companies in the period. The results suggest that there are minor variations in terms of the impact on operating performance following mergers of different kinds.

Memorandum of Understanding and Business Performance Appraisal of the Public Sector

This paper presents a new framework for the memoranda of understanding that central public sector enterprises sign with the government for benchmarking their performance. The framework goes beyond standard financial ratios. It uses these ratios and other information to develop state financial parameters, dynamic indicators and sector and enterprise-specific variables for public sector enterprises in each sector. The paper, based on a study done for the government of India, suggests a new analytical tool for measuring public sector performance.

Sugar Industry in Uttar Pradesh: Rise, Decline and Revival

Uttar Pradesh, a leading producer of sugar cane and sugar before independence, lost its pre-eminent position to Maharashtra in the 1960s, when the western state developed a formidable sugar industry in the cooperative sector. However, a recent resurgence has been noticed in UP, similar to the 1930s boom. This paper tracks different phases of the evolution of UP's sugar industry and examines the regional patterns within the state: how the industry that had originally developed roots in the eastern parts of the state, particularly the Gorakhpur-Basti belt, is now mainly concentrated in the western and central districts.

Intellectual Property Rights Regimes: Comparison of Pharma Prices in India and Pakistan

Almost all earlier studies comparing pharmaceutical prices in Pakistan and India have attributed higher prices in Pakistan mainly to the differences in the intellectual property rights regime between the two countries. That Pakistan permits product patents while India does not is factually incorrect. This paper argues that a weak patent regime combined with policies to reduce market concentration, curb monopolies and encourage bulk drug production, initially through public sector investments, and the size of the Indian market could have led to development of indigenous process capabilities. Meanwhile, in Pakistan, the same patent policy was not combined with policies adopted in India and since the market size is much smaller, it did not have the same effect.

An Analysis of Maharashtra's Power Situation

This paper analyses Maharashtra's data on demand, supply and load shedding. The trends in the hourly load variation and seasonal variation of average energy and peak shortages in Maharashtra (2005-07) are analysed and used to make short-term projections and recommendations. The projected average energy and peak shortages in the state for 2007-08 are 2,600 MW and 4,500 MW, respectively. Demand side management and captive generation can be used to reduce the quantum of load shedding. The possible impact of augmenting generation from installed captive capacity and a few DSM options like efficiency for residential lighting and solar water heaters has been quantified. It is estimated that the average energy and peak shortage for 2007-08 can be reduced to 680 MW and 2,000 MW using these selected options.

Options for Indian Pharmaceutical Industry in the Changing Environment

With the shift to a strong patent law, Indian pharmaceutical companies are rapidly shifting their focus to the generics market of the developed world. But even as India has become a net exporter of pharmaceuticals, import dependence on active pharmaceutical ingredients has steadily increased over the last 10 years. As far as the Indian affiliates of the multinational pharmaceutical companies are concerned, their shares of both the active pharmaceutical ingredients and formulations are declining and their "investment" preferences have shifted towards financial securities. A process of consolidation through mergers and acquisitions has been underway, which apart from increasing market concentration, has been a key element of firm strategy to tap business opportunities along the value chain in the domestic as well as the overseas markets. In the field of R&D, with no Indian pharmaceutical company being equipped to take a potential drug from the investigational stage to the stage of final market launch, collaboration with multinational corporations is the norm, resulting in biases in the choice of therapeutic areas towards lifestyle-related diseases.

Economic Reform, Output and Employment Growth in Manufacturing Testing Kaldor's Hypotheses

The basic object of this paper is to explore what role manufacturing output growth has had on overall economic growth and on employment growth in manufacturing industries in India in the pre- and post-deregulation phases of the country. In the 1960s Kaldor put forward certain hypotheses linking growth of output, employment and productivity in the manufacturing sector. Testing those hypotheses with Indian data may illuminate the nature of the growth process in Indian manufacturing. In particular, they may shed new light on differences in regional patterns of growth in India over the period 1970-71 to 2002-03. The paper focuses on two states, namely, West Bengal and Gujarat, experiencing different types of growth.

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