Internal business risk -Indian manufacturing corporate sector

In any country, manufacturing sector is the backbone of its economy. The growth rate of manufacturing sector in a country truly reflects its economic potentiality. The global yearbook on manufacturing released by United Nations Industrial development organization (UNIDO), showed up the promise in the Indian manufacturing sector and also the catching up it has to do to improve its current 9^th rank in the list of leading manufacturers of the world as of 2010. In India, though the manufacturing sector is growing at a faster pace it has failed to some extent concerning its percentage share in the total GDP. Both Government as well as private sector has come forward for the development of the manufacturing sector of the country. The study resulted that the theoretical argument “the higher the risk the higher the return” was not exactly suitable in the present era. However as per the results, new theoretical argument can be framed as “Risk reflects return” during the post-liberalization era.