Textile Industry in Organised Manufacturing Sector of Punjab: Growth Behaviour and Elasticity Patterns

By : Manjit Sharma

Page No: 406-412

Abstract
The present study is confined to textile industry and organised manufacturing sector of Punjab for the period from 1980–81 to 2002–03. The analysis of organised manufacturing sector reveals that the industrial situation in the state was promising during pre-reform period but there was a dismal scenario in post-reform period. The organised manufacturing sector and textile industry recorded higher trend growth rate of fixed capital in post reform period as compared to pre-reform period, But the growth of fixed capital failed to generate higher growth rate of output and employment for the above industries during post-reform period, i.e. period of ‘‘jobless growth’’. Percentage share of output and employment of textile sector almost remained same level, i.e. 20 percent each during the study period. In textile industry one unit of output generation leads to decrease in employment implying: either employment of labour reaches to its maximum position or these industries require more capital for production of one unit of output. Labour and capital are complimentary to each other for textile industry and organised manufacturing sector in the post-reform period. This is a good sign for Punjab industry because both sector use labour and capital in such a proportion that more use of capital generates more labour.

Author :
Manjit Sharma : Assistant Professor, Dept. of Economics, D. A. V. College,Sector 10, Chandigarh.