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

Articles By manufacturing

Challenges in the Return of Industrial Policy

Industrial policy seems to be attempting a comeback to the centre stage of policy discussions. In a given milieu of global economic conditions, it offers opportunities for developing economies to restructure production. The challenges, however, are multiple, necessitating a move away from conventional policy paradigms and towards a set of forward-looking, futuristic elements.

Trade Reforms, Technology Import, and Firm Productivity in the Indian Manufacturing Sector

The paper is an attempt to examine the impact of technology import on the productivity of Indian manufacturing firms during 1995–2016. The empirics are based on an unbalanced sample of 4,616 firms, which is further segregated into four use-based categories of production. This analysis tends to support the predictions of new trade and growth theories that international trade provides opportunities for dynamic productivity gains.

Mobile Phone Manufacturing in India

In financial year 2019, India produced around 29 crore units of mobile phones, which comes to an investment of around `2,780 crore, at 2017 prices. These investment figures turn out to be much lower than those reported in the popular press. Original equipment manufacturers and electronic manufacturing service firms dominate the Indian manufacturing scene. The analysis of the five-digit Annual Survey of Industries data for 2016–17 and 2017–18 makes it apparent that the impetus towards domestic assembly of mobile phones through various policy measures has made a positive impact on the growth of investments, particularly in plant and machinery assets. As a result, the direct employment generated per unit fixed asset has decreased in 2017–18. Value addition for a majority of the firms at the five-digit level was less than 10% in 2017–18.

India’s Withdrawal from RCEP

One major driver behind India’s decision to embrace the “eastern” regional trade agreements during 2010–11 and graduate from the “Look East Policy” (1991) to the “Act East Policy” (2014) has been the urge to integrate the domestic manufacturing sector with “Factory Asia.” The article analyses India’s trade pattern through an endogenous structural break analysis with monthly data for 10 major sectors, involving the Association of Southeast Asian Nations, China, Japan, and South Korea separately. The analysis concludes that the recent stream of events in the aftermath of the COVID-19 pandemic offers India an opportunity to consolidate the domestic manufacturing sector.

 

National Manufacturing Policy

With the introduction of the National Manufacturing Policy, 2011, India envisioned capacity expansion and sustainable growth. As the NMP is approaching its target deadline of 2022, this article is a reality check on the progress of its major objectives. Introspecting these objectives, it argues for the need to devise and enact the rehabilitation of manufacturing strategies to suit the changing times.

 

Rural–Urban Linkages in Bihar

The growth of the manufacturing sector is important for employing a growing labour force and much is also dependent on their skill level. Enterprise surveys in six sample towns of Bihar, a state characterised by slow industrialisation and urbanisation, find evidence of fairly strong rural–urban linkages for manufacturing enterprises. Although the linkages indicate that the manufacturing sector has the maximum potential to create employment by absorbing the surplus labour in the rural areas, it was found that this sector has been languishing in the sample towns. The findings also flag the challenges and areas of growth for industries.