'Technological Change and Development of Organized Industrial Sector in India: Experiences of Uttar Pradesh' is a pioneering Research out of prototype on Industrialization of U.P.'s economy. It aims at analyzing the inter-relationship between differentials in technological advancement and those of differentials in output and Employment growth of organized industrial sector in Uttar Pradesh both at the State and the regional levels during the reference period: 1974-1986, besides endeavouring to carry out analysis for twenty industry Groups and the four categories delineated out of them on the basis of their Capital Labour ratios of the final year, i.e., 1985-86. Production functions are also estimated using the rich cross-section and time series data of the study. Inspite of suffering from one basic limitation of not using the latest ASI data of 1990-91 owing to its non-availability till completion of the work, the Study has come out with certain significant conclusions. The following among them deserve special mention.
The analysis has succinctly painted out the unrosy scene of organised industrial sector of U.P.'s economy, which has suffered from the sluggish Productivity growth during whole of the reference period as demonstrated by the Movement behaviour of total Factor productivity (TFP) indices and estimated production functions. It is, however, heartening that in sub-period-11 (1980-81 to 1985-86) as a result of significant technological advancement, there has been a marked improvement in output growth simultaneously with downsizing of the employment growth, depicting a clearcut conflict between two. To partake with the national Level objective of Efficiency and equity, it would, therefore, be desirable to follow two pronged approach for Manufacturing purpose, first to promote the organized sector for maximization of Output growth an second to gear up simultaneously the tempo of the unorganised sector for Creation of maximum Possible employment opportunities.
Moreover, inter category analysis ha clearly pointed out that industry group failing in 'medium high capital intensive category are undoubtedly best-suited t industrialisation of U.P.'s economy. In addition, the two industry groups of 'manufacture of Electrical machinery, apparatus, appliances and supplies and parts' and manufacture of food products' are identified as the 'outstanding' in respect of both technological advancement and increased output and employment growth.
Finally, the regional analysis has pointed out that in the matter of technological advancement backward Regions namely Eastern, Uttaranchal and Bundelkhand of the State are much better placed as compared to those of the forward one's (Western and Central). Of these, the Bundelkhand is rated to exceptionally good in terms of significant neutral technological Progress and economies of scale, pointing out towards existence of vast opportunities for industrialisation of not only backward regions but also the whole State.
This is, indeed, a considerable work of scholarship and an important contribution to Economics of development. Thus, the book will be of immense use to Policy makers, planners and the new Army of development experts including researchers. |
