Pro-Market Reforms and Indian Industry: Developments in the Last Two Decades
University of Delhi - Institute of Economic Growth (IEG)
August 23, 2010
The post-1991 pro-market reforms in India are expected to reduce price-cost margins in industries, lower inter-firm productivity dispersion, increase export intensity of firms, and cause changes in the size structure and industrial composition. But, barring the increase in export intensity, the other effects have not occurred or occurred only marginally, despite the reforms induced increases in import competition and possibly some intensification of competition among domestic firms as well. The industrial growth rate has not accelerated in the post-reform period compared to the 1980s. This seems less attributable to stalled reforms, than to infrastructure bottlenecks and demand deficiency.
Number of Pages in PDF File: 30
Keywords: Pro-market reforms, firm performance, Indian industry
JEL Classification: L1, L11, L25, O14
Date posted: August 25, 2010