Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Dharmadhikary-Yadwadkar Amita ¹

Affiliations
1 Department of Economics, University of Pune, Pune 411007, Maharashtra, IN

Abstract

This paper focuses on the organised and unorganised parts of the Indian manufacturing sector. It attempts to construct a thirty two sector capital coefficient matrix (the B matrix) separately for the two parts, for the year 1989. Using the B matrices so constructed, the capital requirements have been estimated for the outputs of the organised and unorganised manufacturing sectors for 2000-2001.

Capital assets of the organized sector are concentrated in the "plant and machinery", whereas the unorganized sector leans heavily towards the sectors "building and construction", "ownership of dwellings" and "transport equipment". The direct and indirect capital requirements for 2000-2001 show that the organised sector makes a much higher demand for its capital requirements in the rest of the economy than the unorganized sector. It is also stimulates more number of sectors than the latter.

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Dharmadhikary-Yadwadkar Amita

Abstract

Liberalization of India's foreign trade sector was one of the main agenda of the New Economic Policy (NEP) which was introduced in June, 1991. The Indian economy is being opened up and a liberal trade regime is prescribed. The argument is that open economies lead to a more efficient allocation of resources. It is believed that an appropriate trade policy can help to push the economy too much higher levels of growth.

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