Development of organized manufacturing sector across Indian states -a spatial approach

Abstract

Abstract The paper examines the nature and pattern of development of the Indian organized manufacturing industries across Indian states using the Annual Survey of Industries (ASI) plant-level data. Four different indices of industrial concentration have been used to estimate the degree of agglomeration of industries. It has been observed that states with a large industrial base are also the hub of some of the highly polluting industries. The degree of industrial agglomeration has been observed to be higher in the case of polluting industries as opposed to non-polluting industries in the year 2013-14. The degree of agglomeration economies of the industry has been observed to be affected by the spillover effect from the adjacent regions. While examining the pattern of spatial concentration of industries over time, the paper concludes that during the period of the analysis 2000-01 to 2013-14, the polluting industries have shown some dispersion both across states (captured by the LQ index) as well as in terms of plant level concentration within-in the same industry. JEL codes: L6, R12, R11