Basic Metal and Alloy Industry in Organised Manufacturing Sector of Punjab: An Analysis of Pre and Post Reform Period

The present study has been carried out for the period of 1980–81 to 2012–13 for basic metal and alloy industry and at their disaggregative level in organised manufacturing sector of Punjab. Basic metal and alloy industry and its all sub-groups and organised manufacturing sector experienced negative growth rate in employment in post reform period. The economic reforms have no doubt ushered in an economic boom but this has not created enough jobs. Capital picked up slowly in organised manufacturing sector,manufacture of basic precious and non-ferrous metal industries in the post reform period and is yet to be fully reflected in employment, emoluments and output. Intra-industry differences in growth rate of labour productivity are quite high. This may have been outcome of differences in technological developments, trained manpower and utilisation of resources. Growth rate of total factor productivity is higher in post-reform period as compared to pre-reform period for basic metal and alloy industry and its all sub-groups. Deceleration in output in organised manufacturing sector during post-reform period has its origin in slow capacity growth and failure to keep the momentum of productivity growth. But Basic metal and alloy industry and manufacture of basic iron and steel observed higher growth rate of output in post reform period.