Technological Upgradation in the Informal Manufacturing Sector: Possibilities and Problems

The informal sector in India has consolidated its position in the economy instead of fading away with time. It has taken up the challenges of the new economic dispension with vigorous competitiveness and amazing adaptation & enthusiasm. However, low labour productivity is one of the serious problems related to this sector. It is argued that technological upgradation is likely to solve this problem substantially. This paper attempts to identify the areas within the informal manufacturing sector where such technological upgradation would be fruitful. Several segments and activity groups are identified as Target groups both at the National and Regional level. Associated policies should address availability of proper technology, resource needs for technological upgradation and promoting formal-informal linkages.Informal Sector; Regional Disparity; Productivity; Technology

Health damage cost of automotive air pollution: Cost benefit analysis of fuel quality upgradation for Indian cities.

The paper has analysed the economic implication of judicial activism of the apex court of India in the regulation of automotive air pollution. It estimates the health damage cost of urban air pollution for 35 major urban agglomerations of India arising from automotive emissions and the savings that can be achieved by the regulation of fuel quality so as to conform to the Euro norms. It has used the results of some US based study and has applied the transfer of benefit method from the US to the Indian situation for the purpose. The paper finally makes a benefit cost analysis of refinery upgradation for such improvement of fuel quality.Urban air pollution ; Health damage cost ; Benefit-cost comparison

Productivity Growth in Small Enterprises - Role of Inputs, Technological Progress and 'Learning By Doing'

Small Manufacturing Enterprises (SMEs) in an overpopulated developing economy serve the dual role of job-creation and shifting the occupational structure. However, their contribution to the overall health of the economy are being questioned on grounds of low productivity and economic viability. Sustainability of SMEs is argued to depend on improving labour productivity (LP) through technological upgradation. In a developing economy this may be a costly proposition due to capital scarcity. So, the effect of technological changes on productivity levels has to be estimated before taking such policies. This effect is generally measured by Total Factor Productivity Growth (TFPG) which is also a measure of Technological Progress (TP). A positive TFPG implies outward expansion of the production frontier leading to more than proportionate output growth compared to input growth whereby it may be concluded that TP is leading to productivity rise. However, TFPG in the growth accounting approach is a residual measure and encompasses the effect of not only TP, but is a combination of improved technology and the skill with which known technology is applied, i.e. Technological Diffusion or Technological Efficiency (TE). The SMEs rely on indigenous resources, adaptive technology, 'on-job' skill acquisition, and, go on experimenting till they achieve the optimum mix of technology, resource, skill and organisation. Consequently, technological diffusion is more important to them rather than the 'modernity' of the technology itself. This paper seeks to disassociate the effects of pure TP from those of TEC in few selected industries within the SMEs to examine the relative importance of them in improving the health of the SMEs. We use the NSSO database on Unorganised Manufacturing sector. The reference periods are 1994-95 and 2000-01, as defined by the two latest NSSO surveys and concentrate on Food product, Textiles, Leather product, and Non-electrical & electrical equipment sectors. Mean contribution of input growth is found to be 3.17 percent p.a. while that of TFPG has been only 1.10 percent p.a. Contribution of input growth is higher than TFPG in majority of cases, indicating that major part of VAG has been possible because of increased input use and technological upgradation has had only a moderate effect. It is observed that Efficiency levels have improved in 65 percent of cases while TP has been positive in just 35 percent cases. The quantum of TEC has been higher than TP in more number of cases. In about 70 per cent of the situations where indeed there has been some technological improvement, technological diffusion has by far outstripped the role of pure technical progress. For Food product and Equipment sectors, both TP and TEC are observed to be equally important in determining TFPG. While TP plays a dominant role in the Textiles sector, TEC plays a more vital role in the Leather products sector.This underlines the importance of diffusion for improving the conditions of the SMEs and as a policy choice, Efficiency Upgradation appears more viable, effective and lucrative compared to Technological Upgradation.Productivity; Small Manufacturing Enterprises; Technological Progress; Total Factor Productivity; Frontier Production Function

Productivity in the Small Manufacturing Enterprises: Determinants and Policy Issues

The role of Micro and Small Enterprises (MSEs) in employment creation is widely acknowledged. But their contribution to national income is questioned because of their low productivity. The present paper tries to identify important determinants of productivity level in Small Manufacturing Enterprises (SMEs) and suggest appropriate policies for augmenting productivity levels therein. Factors like technology, access to resources and inputs, general macroeconomic atmosphere, etc. emerge as important determinants of productivity. A close association between productivity levels and emolument per worker is also observed. Policies for proper development of these enterprises should include technological upgradation, better access to land ownership and formal credit system, improvement of general economic condition of the states, ensuring remunerative wages and better working conditions etc. For best results, a targeted approach is recommended and for that Focus groups, both at National and State level, have been identified. A co-ordinated approach is the need of the hour.Productivity; Micro-enterprises; Total Factor Productivity; Technology

Indian Railways in the Past Twenty Years Issues, Performance and Challenges

Indian Railways (IR) is Asia’s largest and world’s second largest network under one management, with a separate Ministry and its own annual budget. The network carried about 17 million Passengers and 2 mt freight every day on the route of 63,327 km (2006-07). Although key business operations are freight and passenger, IR is also engaged in several allied services including parcel, catering and production units. Nearly 70 percent of IR’s revenues come from the freight operations, which can be segmented into bulk and other cargo. Over the years, IR has predominantly become a bulk freight carrier, accounting for about 94 percent of the freight revenue. Coal alone accounts for nearly half of the bulk traffic carried. Passenger business accounts for nearly 60 percent of IR’s total transport effort, in terms of train kilometers, but yield less than 30 percent of the total revenues. Suburban services account for 57 percent of the originating passengers, while contribute to only 8 percent of the passenger revenue. To understand the development process of IR’s over the past twenty years, the study covers issues and strategies related to financial and physical aspects of revenue generating freight and passenger traffic from 1987-2007. Study also covers the developments in the parcel, catering and advertising sector.

Trends in private and public investments in agricultural marketing infrastructure in India

The study has estimated the extent of investment made in promotion of marketing infrastructure in the country and growth in public and private investments. It has also examined state-wise spread of private and public investments in agricultural marketing infrastructure, its composition and share and has investigated whether private investment induces pubic investment or vice versa. Of the total investment of Rs 157652.30 lakh made for the development of agricultural marketing infrastructure, Madhya Pradesh has accounted for the maximum (36%) share, followed by Tamil Nadu (18%) and Andhra Pradesh (13.5%). West Bengal has accounted for the lowest share. The analysis has indicated that there is a strong complementarity between private and public investments and as soon as private investment comes, public investment also starts pouring in. On investigating whether public investment is dependent on private investment or vice versa, the study has revealed that private investment induces public investment. The study has further indicated that in agricultural marketing infrastructure, private investment has taken a lead, which is a welcome change because private investment is more efficiently used as compared to public investment. To give further fillip to private investment in agricultural marketing infrastructure, the study has provided certain suggestions.Marketing,

Women and Landed Property in Urban India: Negotiating Closed Doors and Windows of Opportunity

This paper examines land tenure in informal urban settlements in India from a gender perspective through field research conducted in Ahmedabad in collaboration with the Self-Employed Women's Association (SEWA). The author describes the formal and informalwomen, landed property, cities, India, South Asia

Routes of survial of SSI in India and its futurity - a study of pre and post reform period

The small scale sector in India has particularly emerged as a vibrant and dynamic segment of the economy. The strategy of economic development of any country that formulate programmes for removal of poverty by providing large scale employment, education and training, capital formation, effective mobilisation of resources, balanced economic growth, expansion of trade, transport and equitable distribution of national income with effective involvement and participation of all its citizens in the accomplishment of the goal, cannot neglect small scale industrial sector (SSI). The second generation of economic reforms is underway with vigour. Liberalisation of key sectors is gaining momentum with more relaxed regulatory framework to provide further impetus to growth. Over the past decade, Indian economy has undergone transition phase witnessing the challenges of more free and market oriented environment of the Liberalised era. Being one of the major growth drivers of the economy, the biggest challenge before SSI is not only to survive but also to grow and compete on a sustainable basis. This paper compares the performance of SSI in pre and post liberalised period and focuses on policy changes which have opened new opportunities for this sector. Technology development and strenthening of financial infrastructure is needed to boost SSIand thus growth target can be achieved.ssi, globalized world, role of ssi

CONSTITUENT DIMENSIONS OF CUSTOMER SATISFACTION: A STUDY OF NATIONALISED AND PRIVATE BANKS

Satisfaction of the customers is invaluable asset for the modern organizations, providing unmatched competitive edge. It helps in building long-term relationship as well as brand equity. The best approach to customer retention is to deliver high level of customer satisfaction that result in, strong customer loyalty. Satisfaction being a judgment, that a product or service feature or the product or service itself, provides a pleasurable level of consumption related fulfillment, is dynamic in nature. It is the result of interplay of a number of factors, which vary from one product/service category to another. Present study is aimed at exploring the determinant factors and hence developing dimensions of customer satisfaction for nationalized and private banks. Two-stage factor analysis was computed to arrive at the dimensions of customer satisfaction. The study revealed ten factors and five dimensions of customer satisfaction for nationalized and private banks respectively.customer satisfaction, private amd public banks.

Liberalisation and The Differential Conduct and Performance of Firms: A Study of the Indian Automobile Sector

This paper analyses the behaviour of Indian Automobile firms operating under regulated and liberal economic policy regimes. Results from the step-wise discriminant analysis presented in this paper reveal that the conduct and performance of firms in this sector differ significantly between the regulated [1985-86 to 1990-91] and liberal [1991-92 to 1995-96] economic policy regimes with respect to foreign equity participation, in-house R & D efforts, technology imports, capital intensity, advertisement, exports, growth and profits.liberalisation, firm's conduct, performance of firms, Automobiles, developing countries, India