Measuring the Industrial Concentration and Regional Specialisation of Major Indian Industrial States

Abstract

This article analyses the influence of industrial disparity and centralisation (concentration) on major industrial states in India. Accordingly, we are using two mathematical models: (a) localisation coefficients to identify major industries that are suffering by industrial concentration and (b) location quotient to measure regional industrial specialisation. Consequently, it shows the natural tendency of distribution of industries in a particular way between the six major Indian industrial states. Therefore, we determine the reasons for lack of industrialisation within those states. Afterwards, this research helps to understand that those regions are either little specialised regions or concentrated with few industries. Especially, policy makers can easily equally distribute through location quotient and localisation coefficient, all manufacturing industries in all six regions. Moreover, this research can reduce the tendency of lack of industrialisation.