IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2016-01-46.html
   My bibliography  Save this article

Private Equity and its Role in the Development of the Indian Manufacturing Sector

Author

Listed:
  • Mohammad Ahmar Uddin

    (Department of Accounting and Finance, Dhofar University, Oman,)

  • Syed Ahsan Jamil

    (Department of Accounting and Finance, Dhofar University, Oman,)

  • Khaliquzzaman Khan

    (Department of Marketing and Management, Dhofar University, Oman.)

Abstract

Manufacturing sector accounts for only 16% of gross domestic product (GDP) in India, while in China it is around one third of its GDP. Also the share of Indian manufacturing in the worldwide markets is dismal at 1.4%, while China it is now 13% from just 2.9% in 1990s. India also aspires to have such growth in its manufacturing sector. Growth of manufacturing sector is vital due to its multiplier effect on economy and employment. Every job created in the manufacturing sector creates two-three additional jobs in related activities. The aim of the Indian National Manufacturing Policy (2011) is to create to 100 million jobs and increase the share of manufacturing in GDP to 25% by 2022. Private equity (PE) as fi nancial intermediaries improves the allocation of resources from the investors and also provides various types of managerial assistance to industry enabling make them to be more competitive. This paper emphasizes the role that can be played by PE in the development of Indian manufacturing sector. Also the paper highlights the various types of assistance and problems in PE

Suggested Citation

  • Mohammad Ahmar Uddin & Syed Ahsan Jamil & Khaliquzzaman Khan, 2016. "Private Equity and its Role in the Development of the Indian Manufacturing Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 361-364.
    • Handle: RePEc:eco:journ1:2016-01-46
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/1732/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/1732/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2015. "Do Private Equity Owned Firms Have Better Management Practices?," American Economic Review, American Economic Association, vol. 105(5), pages 442-446, May.
    2. Chakravarty, Sangeeta & Mitra, Arup, 2009. "Is industry still the engine of growth? An econometric study of the organized sector employment in India," Journal of Policy Modeling, Elsevier, vol. 31(1), pages 22-35.
    3. Gorman, Michael & Sahlman, William A., 1989. "What do venture capitalists do?," Journal of Business Venturing, Elsevier, vol. 4(4), pages 231-248, July.
    4. Cressy, Robert & Munari, Federico & Malipiero, Alessandro, 2007. "Playing to their strengths? Evidence that specialization in the private equity industry confers competitive advantage," Journal of Corporate Finance, Elsevier, vol. 13(4), pages 647-669, September.
    5. Mohammad Ahmar Uddin & Khaliquzzaman Khan, 2015. "A Study of the Entrepreneurial Constrains in the Indian Manufacturing Sector," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 1055-1059.
    6. Steven N. Kaplan & Per Stromberg, 2009. "Leveraged Buyouts and Private Equity," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 121-146, Winter.
    7. Steven J. Davis & John Haltiwanger & Kyle Handley & Ron Jarmin & Josh Lerner & Javier Miranda, 2014. "Private Equity, Jobs, and Productivity," American Economic Review, American Economic Association, vol. 104(12), pages 3956-3990, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tykvová, Tereza & Borell, Mariela, 2012. "Do private equity owners increase risk of financial distress and bankruptcy?," Journal of Corporate Finance, Elsevier, vol. 18(1), pages 138-150.
    2. Vladimiro Marini & Massimo Caratelli & Gian Paolo Stella & Ilaria Barbaraci, 2022. "Is corporate governance of private equity targets more effective for risk mitigation?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 781-811, September.
    3. Tåg, Joacim, 2010. "The Real Effects of Private Equity Buyouts," Working Paper Series 851, Research Institute of Industrial Economics.
    4. Martin Olsson & Joacim Tåg, 2017. "Private Equity, Layoffs, and Job Polarization," Journal of Labor Economics, University of Chicago Press, vol. 35(3), pages 697-754.
    5. Borell, Mariela & Heger, Diana, 2013. "Sources of value creation through private equity-backed mergers and acquisitions: The case of buy-and-build strategies," ZEW Discussion Papers 13-094, ZEW - Leibniz Centre for European Economic Research.
    6. Wilson, Nick & Wright, Mike & Siegel, Donald S. & Scholes, Louise, 2012. "Private equity portfolio company performance during the global recession," Journal of Corporate Finance, Elsevier, vol. 18(1), pages 193-205.
    7. Charlie Weir & Peter Jones & Mike Wright, 2015. "Public to private transactions, private equity and financial health in the UK: an empirical analysis of the impact of going private," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 91-112, February.
    8. Agrawal, Ashwini & Tambe, Prasanna, 2016. "Private equity and workers’ career paths: the role of technological change," LSE Research Online Documents on Economics 69476, London School of Economics and Political Science, LSE Library.
    9. Tereza Tykvová, 2018. "Venture capital and private equity financing: an overview of recent literature and an agenda for future research," Journal of Business Economics, Springer, vol. 88(3), pages 325-362, May.
    10. Sakshi Sharma & Kunjana Malik & Manmeet Kaur & Neha Saini, 2023. "Mapping research in the field of private equity: a bibliometric analysis," Management Review Quarterly, Springer, vol. 73(1), pages 61-89, February.
    11. Troy D. Smith, 2015. "Private Equity Investment in India: Efficiency vs Expansion," Discussion Papers 15-011, Stanford Institute for Economic Policy Research.
    12. Steven J. Davis & John C. Haltiwanger & Kyle Handley & Ben Lipsius & Josh Lerner & Javier Miranda, 2021. "The economic effects of private equity buyouts," Jena Economics Research Papers 2021-013, Friedrich-Schiller-University Jena.
    13. Adongo, Jonathan O., 2017. "Legal jurisdiction, director liability law, and venture capitalists’ equity stakes in Africa," Research in International Business and Finance, Elsevier, vol. 40(C), pages 78-93.
    14. Fabio Bertoni & María Ferrer & José Martí, 2013. "The different roles played by venture capital and private equity investors on the investment activity of their portfolio firms," Small Business Economics, Springer, vol. 40(3), pages 607-633, April.
    15. Sharjil M. Haque & Simon Mayer & Teng Wang, 2024. "How Private Equity Fuels Non-Bank Lending," Finance and Economics Discussion Series 2024-015, Board of Governors of the Federal Reserve System (U.S.).
    16. Andrew Metrick & Ayako Yasuda, 2011. "Venture Capital and Other Private Equity: a Survey," European Financial Management, European Financial Management Association, vol. 17(4), pages 619-654, September.
    17. Y. Sekou Bermiss & Benjamin L. Hallen & Rory McDonald & Emily C. Pahnke, 2017. "Entrepreneurial beacons: The Yale endowment, run‐ups, and the growth of venture capital," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 545-565, March.
    18. Shai Bernstein & Josh Lerner & Filippo Mezzanotti, 2019. "Private Equity and Financial Fragility during the Crisis," The Review of Financial Studies, Society for Financial Studies, vol. 32(4), pages 1309-1373.
    19. Gompers, Paul & Kaplan, Steven N. & Mukharlyamov, Vladimir, 2016. "What do private equity firms say they do?," Journal of Financial Economics, Elsevier, vol. 121(3), pages 449-476.
    20. Albert N. Link & Christopher J. Ruhm & Donald S. Siegel, 2014. "Private Equity and the Innovation Strategies of Entrepreneurial Firms: Empirical Evidence from the Small Business Innovation Research Program," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(2), pages 103-113, March.

    More about this item

    Keywords

    Manufacturing; Private Equity; Development; India;
    All these keywords.

    JEL classification:

    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2016-01-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.