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An Analysis of Investment in the Registered Manufacturing Sector in India”

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An Analysis of Investment in the Registered Manufacturing Sector in India”
Paper for The Indian Econometric Society Conference….

Topic: -

“AN ANALYSIS OF INVESTMENT IN THE REGISTERED MANUFACTURING SECTOR IN INDIA”

BY:

SANTOSH KUMAR DAS
Research Scholar in Economics,
Jawaharlal Nehru University,
New Delhi-67

Address:

Santosh Kumar Das
Room No-136,
Chandrabhaga Hostel
Jawaharlal Nehru University,
New Delhi-67
E-mail:
santosh.jnu@gmail.com santoshkumar2k2@rediffmail.com

AN ANALYSIS OF INVESTMENT IN THE REGISTERED MANUFACTURING SECTOR IN INDIA

Abstract

The present paper is an attempt to study the pattern of growth and structure of investment in Indian registered manufacturing sector both at all India and state level. At the same time also tries to explore the factors those influence the level of investment in Indian registered manufacturing sector and finds out the reasons for uneven growth and share of investment across major Indian states. The study mainly relies upon the Annual Survey of Industries (ASI) data, published by Central Statistical Organization (CSO). The study intends to examine the above-mentioned objectives at 2-digit level of Industry classification. The period of study is from 1980-81 to 2001-02. Semi log linear model has been used to calculate the trend growth of GFCF and simple OLS method has been used to estimate the factors those influence the investment in the Indian registered manufacturing sector. To explain the variations in investment growth and share across states, relative income index and composite infrastructure index has been constructed. The study found, at all India level there has been investment boom in the first half of nineties and after that sharp decline in investment. The story remains same in case of majority of the states. The reasons for investment boom are, (i) increase in the share of profit during this period, (ii) declining share of depreciation, (iii) issue of new capital in the stock market by
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