Growth Of Employment And Output Of Organised Manufacturing Sector In India: An Inter State Analysis

Since economic liberalisation the states in India are making a concerted efforts to improve industrial performance in the state. On the basis of ASI data, Haryana, Rajasthan, Punjab, Tamil Nadu, Andhra Pradesh, Karnataka, Madhya Pradesh, Kerala and Delhi recorded higher growth rate of employment in the manufacturing sector than that of all-India during 1980-81 to 1997-98. However, Assam, Gujarat, Uttar Pradesh, Maharashtra, Bihar and West Bengal recorded lower growth rate of employment during 1980-81 to 1997-98. During pre-liberalisation period Punjab, Rajasthan, Haryana, Delhi, Tamil Nadu, Andhra Pradesh, Orissa, Madhya Pradesh and Karnataka recorded higher employment growth than that of all India. While states such as Uttar Pradesh, Kerala, Assam, Bihar, Gujarat, Maharashtra and West Bengal recorded lower growth rate. During post-liberalisation period states like Karnataka, Kerala, Gujarat and Maharashtra accelerated the growth of employment. During post-liberalisation period in terms of growth of real output better performance is recorded by Haryana, Gujarat, Karnataka, Tamil Nadu, Rajasthan and Maharashtra, while Assam, Bihar and West Bengal shared relatively poor performance. In overall, Tamil Nadu, Andhra Pradesh, Punjab, Haryana, Rajasthan and Karnataka recorded better performance in terms of growth of employment and output of the manufacturing sector during 1980s and 1990s