Asian Journal of Research in Business Economics and Management
Year : 2015, Volume : 5, Issue : 4
First page : ( 72) Last page : ( 87)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2015.00089.4

Structure and Performance of Indian Organised Manufacturing Industries during Pre and Post Reform Period

Dr. Thimmaiah Navitha*, Assistant Professor,  Sameeullakhan*, Research Scholar

*DOS in Economics and Co-operation, University of Mysore, Mysore, India

Lecturer, Government Independent PU College, Hosakere, Madhugiri Taluk, India

Online published on 4 April, 2015.

Abstract

Present study is investigating growth pattern and productivity trends in Indian organised manufacturing industries for the period of 1973–74 to 2011–12 by making use of ASI time series data. The growth of Indian organised manufacturing industries has been estimated in terms of five variables. Yearly and CAGR have been worked out and partial factor productivity was estimated to ascertain the impact of NIP on growth of organised manufacturing industries. This study used transformed Cochrane-Orcutt iterative and Prais-Winsten Procedure to overcoming the problem of auto correlation for estimating the relationship between labour productivity, capital intensity and real wage in the Indian organised manufacturing industries by fitting multiple regression models. The present study found that in post-reform era growth rate decreased in number of factories, employment and total emoluments whereas growth rate increased in gross fixed capital and gross value added. This represent that the post-reform has promoted the use of capital intensive and labour saving techniques of production leading to poor growth of employment, total emoluments and it has also facilitated the elimination of sick factories in Indian organised manufacturing industries. The comparative profile of pre-reform and post-reform period revealed that during reform period productivities of labour declined but capital productivity decelerated significantly whereas capital intensity and real wage improved significantly. Co-efficient of capital intensity is found to be statistically significant at 1% level of significance while the co-efficient of real wage was found to be statistically insignificant which means that increase in labour productivity in the Indian organised manufacturing industries was explained by the increase in capital intensity rather than the increase in real wage during the period under study.

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