Spatial Industrial Diversification in India: An Analysis of Unorganised Manufacturing Enterprises

Assam Economic Review, Vol. 10, pp. 18-33, 2017

15 Pages Posted: 21 Feb 2017 Last revised: 1 Aug 2017

See all articles by Dilip Saikia

Dilip Saikia

Darrang College - Department of Commerce

Nivedita Goswami

Gauhati University - Department of Economics

Date Written: December 21, 2016

Abstract

Industrial diversification continues to be an important policy goal in regional planning, because of its direct positive effect on economic growth and stability. A large number of studies in India, carried out at different geographical scales namely, national level, states, and districts show that the industrial structure of India and its regions and states is characterised by high degree of specialisation rather than diversification. However, these studies are related to the organised (or registered) manufacturing sector only. Despite the fact that the unorganised manufacturing sector, also known as the informal manufacturing sector, is vast and diverse, and occupies an important role in India’s industrial sector, very few studies have attempted any systematic analysis of the structure of the unorganised enterprises, both at the national and regional levels. Therefore this paper aims to examine the industrial structure and the extent of diversification of unorganised manufacturing enterprises across the Indian states. Using data from the 51st (1994–95), 62nd (2005–06), and 67th (2010–11) “quinquennial” rounds the National Sample Survey on unorganised manufacturing enterprises, we have analysed the industrial structure of the states at two-digit industry level by employing location quotient technique, whereas the diversification coefficient has been employed to examine the degree of diversification of unorganised manufacturing enterprises in different states. We have also examined the relationship between diversification of unorganised manufacturing enterprises and level of industrial development across the states.

Keywords: Diversification Coefficient, Industrial Base, Industrial Structure, Location Quotient, Unorganised Manufacturing Enterprises

Suggested Citation

Saikia, Dilip and Goswami, Nivedita, Spatial Industrial Diversification in India: An Analysis of Unorganised Manufacturing Enterprises (December 21, 2016). Assam Economic Review, Vol. 10, pp. 18-33, 2017. Available at SSRN: https://ssrn.com/abstract=2920070 or http://dx.doi.org/10.2139/ssrn.2920070

Dilip Saikia (Contact Author)

Darrang College - Department of Commerce ( email )

Department of Commerce
Tezpur, Assam
India

Nivedita Goswami

Gauhati University - Department of Economics

India

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