Nature of agglomeration of the manufacturing sector –a study of Indian Districts
DOI:
https://doi.org/10.55763/ippr.2023.04.02.003Abstract
The paper estimates the degree of agglomeration of the Indian organised manufacturing sector and examines its evolution pattern across districts over the period 2000-01 to 2009-10. The estimation of the degree of industrial agglomeration is based on plant-level data from the Annual Survey of Industries. The paper uses the spatially-weighted Ellison Glaser Index to control for the inter-district spillover effect. The overall degree of agglomeration has been moderate and, over time, it registered a declining trend. While analysing the nature of industrial agglomeration, it has been observed that most of the low-tech and medium-low-tech industries are found to be highly agglomerated. 42% of the highly agglomerated industries are also highly polluting in nature. During the period 2000-01 to 2009-10, the second-tier cities observed a rise in the number of plants belonging to the polluting industries. High-tech industries are found to be concentrated in the already industrialised states. In contrast to this, the medium-high-tech industries have been spreading across districts. The distribution of low-tech industries is found to be even across the districts.
Keywords:
agglomeration economies, manufacturing sector, IndiaDownloads
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