Informal manufacturing sector in post-reform India: A state-level analysis

This paper attempts to trace the status of informal manufacturing sector in the Post-Reform India on a disaggregated level i.e. State-level, which constitutes an important part of not only the manufacturing sector but of the economy as a whole and has been growing over the years in terms of Gross Value Added per Enterprise. The study uses the definition given by NCEUS (2008) to identify the unorganized manufacturing sector and unit level NSSO data of two rounds 56th (2000-01) and 67th (2010-11) to compare the estimates of Gross Value Added per Enterprise and Gross Value Added per Worker on various characteristics of the enterprises. Also the states have been classified along the newly given lines of Raghuram Rajan Committee Report (2013)-Least Developed, Less Developed and Relatively Developed to bring into the picture newly identified dimensions of development of states. The findings reveal that there is hardly any change in the status of Least Developed States while both Less and Relatively Developed have grown on a fast pace, the rate of growth being faster in the case of Less Developed States. The paper concludes with the findings that though Least Developed States and Less Developed States have started to expand on a very fast note, the disparities in the productivity levels on various fronts seems to be highly aggravated in Relatively Developed States.