Regional Industrial Growth Under Economic Liberalization

The impact of economic-liberalization on industrial development in India is widely discussed and debated. However, very little attention is paid to the spatial aspects, though neoclassical growth models, which provide the economic rationale for pro-market liberalisation policy, anticipate faster growth (higher growth rates) of poor regions relative to rich ones and consequent trend towards income-convergence and balanced development of regions within a country. In the above context the book reviews the trends in regional differentiation in industrial growth and income convergence across the state-regions in India during the nineties. There is a pioneering attempt towards an in-depth analysis of industrial development of Kerala as a case study to draw some generalisations on selected issues of the pro-market liberalisation policy constraining industrial growth of poor state-regions. The large part of the book is devoted to the portrayal of growth trends in output, income, employment, productivity and technological change, and to the exploration of structural, region-specific and institutional factors behind the observed difference in the growth profile of Kerala relative to the neighbouring states. Also, there is an attempt to argue out a strong case and to outline a new vision on the strategies for accelerating industrial growth in Kerala, which already has high achievements in social and human development and a history of dealing with some form of globalisation in trade.