Technological Change and Industrial Development: Indian Experiences

Technological Change and Industrial Development: Indian Experiences is a pioneering research output of prototype on industrialisation of U.P.’s economy. It aims at analysing the inter-relationship between differentials in technological advancement and those of differentials in output and employment growth of organised industrial sector in Uttar Pradesh both at the State and the regional levels during the reference period: 1974-1986, besides endeavouring to carry out analysis for twenty industry groups and the four categories delineated out of them on the basis of their capital labour ratios of the final year, i.e., 1985-1986. Production functions are also estimated using the rich cross-section and time series data of the study. Inspite of suffering from one basic limitation of not using the latest ASI data of 1990-91 owing to its non-availability till completion of the work, the study has come out with certain significant conclusions. The following among them deserve special mention. The analysis has succinctly painted out the unrosy scene of organised industrial sector of U.P.’s economy, which has suffered from the sluggish productivity growth during whole of the reference period as demonstrated by the movement behaviour of total factor productivity (TFP) indices and estimated production functions. It is, however, heartening that in sub-period-II (1980-81 to 1985-86) as a result of significant technological advancement, there has been a marked improvement in the output growth simultaneously with downsizing of the employment growth, depicting a clear cut conflict between the two. To partake with the national level objective of efficiency and equity, it would, therefore, be desirable to follow two pronged approach for manufacturing purposes; first to promote the organised sector for maximisation of output growth and second to gear up simultaneously the tempo of the unorganised sector for creation of maximum possible employment opportunities. Moreover, inter category analysis has clearly pointed out that industry groups falling in ‘medium high capital intensive’ category are undoubtedly best suited to industrialisation of U.P.’s economy. In addition, the two industry groups of ‘manufacture of electrical machinery, apparatus, appliances and supplies and parts’ and ‘manufacture of food products’ are identified as the ‘outstanding’ in respect of both technological advancement and increased output and employment growth. Finally, the regional analysis has pointed out that in the matter of technological advancement backward regions namely Eastern, Uttaranchal and Bundelkhand of the State are much better placed as compared to those of the forward one’s (Western and Central). Of these, the Bundelkhand is rated to be exceptionally good in terms of significant neutral technological progress and economies of scale, pointing out towards existence of vast opportunities for industrialisation of not only backward regions but also the whole State. This is, indeed, a considerable work of scholarship and an important contribution to ‘economics of development’. Thus, the book will be immense use to policy makers, planners and the new army of development experts including researchers.