OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
India's Growth Pattern and Obstacles to Higher Growth
India’s growth performance has improved significantly over the past 20 years, but has been uneven
across industries and states. While some service industries, notably in the information and communications
technology sector, have become highly competitive in world markets – yielding considerable gains for
employees and investors – manufacturing industries have lagged and improved their performance only
recently. A divergence in performance has taken place, with firms in those states and sectors with the best
institutions gaining, and those in the more tightly regulated states and sectors falling further behind. As a
result, the competitive landscape is uneven across sectors and states and a high degree of concentration
continues to prevail in different industries. While this is partly the result of the legacy of licensing, change
has been politically difficult, making it harder for the manufacturing sector than for the service sector to
expand. The need for further institutional reforms is urgent, focusing on product and labour market
regulations at the central and state levels.
This working Paper relates to the 2007 Economic Survey of India (www.oecd.org/eco/surveys/india).
Keywords: specialisation, regulation, manufacturing development, regional concentration, productivity, firm microdata
JEL:
O12: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Microeconomic Analyses of Economic Development;
L11: Industrial Organization / Market Structure, Firm Strategy, and Market Performance / Production, Pricing, and Market Structure; Size Distribution of Firms;
F15: International Economics / Trade / Economic Integration;
D4: Microeconomics / Market Structure, Pricing, and Design
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