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

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What Causes Agglomeration— Policy or Infrastructure?

How significant are industrial dispersal policy incentives for agglomeration of organised manufacturing in India? Using plant-level data for 1997-98, the locational choices of 66 manufacturing industries in 21 Indian states are investigated. First, the degree of agglomeration (Ellison-Glaeser index) is calculated in each of these industries to ascertain in which states they are clustered, followed by an econometric investigation of industrial dispersal policy after controlling for different factors that affect agglomeration. The analysis yields that the dispersal policy has not been successful in most specifications. Factors like presence of infrastructure, coastlines, and labour market pooling determine agglomeration. The results also indicate that the nature of the product, high electricity tariff, and per capita energy gap have induced several industries to disperse.

Science, Society and Risk in the Anthropocene

The culture of too much hygiene in rapid, unplanned urbanising society with poor infrastructure exposes urban spaces to a particular risk brought about by unchecked use of technology. This article looks at the indiscriminate use of antibiotics and antibacterial consumer products, which form the aetiology for the emergence of new strains of antibiotic resistant bacteria (superbugs) in urban space, especially in waterbodies.

Himachal Pradesh : Critical Issues in Primary Education

Primary education has made impressive strides in Himachal Pradesh. These have been due to investments made in the sector, the relatively less iniquitous social structure in rural areas and greater opportunities available to women. However, the increased attraction of private schools offers new challenges to government-run schools, where processes directed at improving the quality of education are yet to take root.

Can Singapore Be a Hong Kong to India?

Can Singapore with its spare investible resources and expertise in building infrastructure act as a window of investment to eastern India as Hong Kong has been to southern China, making the latter a hub of great industrial activity? Much depends on the political leadership in India, at the centre and in the concerned states.

Horizontal Imbalances in India

Horizontal imbalances (measured by the coefficient of variation in own revenue as a percentage of total expenditure) persist in India even today mainly due to a host of economic and political factors. Variations in tax base, tax effort, infrastructural facilities - both physical and social - and political uncertainty are found to be the important determinants of horizontal imbalances. The dispersion in horizontal imbalance can only be reduced through all-round development of the poorer states. General-purpose transfers from the centre are essential for horizontal equity but they cannot ensure a permanent solution.

Capital Account Liberalisation in India

This study attempts to explore the consequences for India of opening up the capital account. It builds a model to establish a formal link between capital flows and economic growth in the Indian context and reconciles the results from this model with the possible end-use of capital flows into different sectors.

Reviving the Economy

Since the beginning of the 1990s contractionary features inherent in public policies have resulted in a massive squeeze on investment in physical infrastructure in particular, and a sharp deterioration in the share of development in the government's total expenditure. All hopes have been pinned on the revival of industrial demand through possible improvement in agricultural growth in the current year following copious rainfall so far. However, because this beneficial impact, if it occurs, follows two years of falling incomes in the sector, it is not likely to be either significant or immediate. This note explores the possibilities of deploying the surfeit of liquidity in the financial system in a 'supply-leading' strategy for the development of railways and other physical infrastructures in order to kick start the economy.

MSRDC and Mumbai-Pune Expressway

This case study of the Mumbai-Pune Expressway points out that delivery of infrastructure like road and highways, especially mega projects, totally through the private sector is currently difficult. In the absence of such private sector capacity to take on this responsibility, the role has been creatively shouldered by the Maharashtra government by forming and supporting a road development corporation - carved out of its public works department in its primary mission, the building of essential projects in a timely fashion. The experience of the Mumbai-Pune Expressway indicates that the public sector, freed of political intervention and outdated organisational structure and given command and authority to innovate is able to deliver needed products efficiently.

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