Growth Rate of the Manufacturing Sector during Pre and Post Reform Periods: A Comparative Analysis of Major Indian States

Sakshi Arora

Volume : VII, Issue : X, October - 2017

Growth Rate of the Manufacturing Sector during Pre and Post Reform Periods: A Comparative Analysis of Major Indian States

Sakshi Arora

Abstract :

The present study estimates and compares the growth rates of Net State Domestic Product (NSDP) of the manufacturing sector of major Indian states during the pre– and post economic reform phases. The results indicate that during the pre–reform period, Haryana had registered maximum compound annual growth rate of NSDP followed by Punjab and Uttar Pradesh. A sizeable change in the growth rates and the respective ranking of the states has been observed during the post reform period. The states of Gujarat, Himachal Pradesh and Jammu & Kashmir have emerged as the top three performing states, whereas the states of Assam, Bihar and Uttar Pradesh have witnessed low growth rates of the manufacturing sector during the post reform period. This indicates that the growth of this sector has not been uniform and the key causal factors behind the existence of varied performance amongst the Indian states need to be identified by the policy makers for sustained growth of the manufacturing sector in India.