Regional Concentration of Manufacturing Industries in India

By : Anand Sharma , Sanjoy Saha

Page No: 12-23

Abstract
Unbalanced spatial distribution of industries has always been linked with regional economic disparities in the literature. So, the information about the spatial concentration of industries is essential for the purposes of regional development policies. Therefore, the present study examines the trend and pattern of concentration of major twodigit industries across the 20 states during 2001–02 to 2011–12. Using location quotients, we find that geographical concentration exhibits a great deal of variation across the states. Specifically, the results show that northern states of India like Uttarakhand and Himachal Pradesh display an upward trend in concentration for majority of the industries. On the other hand, eastern states like Chhattisgarh, Jharkhand and Odisha have experienced a declining concentration of these industries. Therefore, these states need to formulate and effectively implement the industrial policies that attract more industries in these states.

Authors :
Anand Sharma : Assistant Professor, Indian Institute of Management, Sirmaur, Himachal Pradesh, India.
Sanjoy Saha : Assistant Professor, Department of Economics, Debraj Roy College, Golaghat, Assam, India