Intra-State Concentration of Unorganized Manufacturing Enterprises in India

By : Dilip Saikia

Page No: 24-38

Abstract
The objective of this paper is to examine the intra-state concentration of unorganized manufacturing enterprises in India. Using a unique data-set of 394 districts of 16 states, drawn from Enterprise Survey data of National Sample Survey (NSS) 1994–95 and 2005–06 ‘thick’ rounds, we have ranked the districts based on a composite index of district level development of unorganized manufacturing enterprises and measured the intra-state concentration by employing the Herfindahl index. The findings reveal that the most ‘lagging’ industrial districts are present not only in backward states but in developed states also. Intra-state concentration is found to be highest in Maharashtra, followed by Gujarat and Himachal Pradesh, whereas relatively low in Bihar, Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Assam, Kerala, Odisha and West Bengal. Between 1994–95 and 2005–06, intrastate concentration has declined in Madhya Pradesh, Gujarat, Haryana, Uttar Pradesh, Tamil Nadu, Punjab, Bihar and Odisha, whereas it has increased in Himachal Pradesh, Rajasthan, West Bengal, Assam, Karnataka and Andhra Pradesh. However, there is evidence for within state β–convergence in all the states, except Himachal Pradesh. Our analysis also shows that intra-state concentration of unorganized manufacturing enterprises is positively associated with the level of economic and industrial development.

Author :
Dilip Saikia : Assistant Professor, Department of Commerce, Darrang College, Tezpur, Assam, India