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Profitability in India’s Organized Manufacturing Sector: The Role of Technology, Distribution and Demand
[The effect of neoliberalism on the fall in the rate of profit in business cycles]

Author

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  • Deepankar Basu
  • Debarshi Das

Abstract

Using aggregate data from the Annual Survey of Industries, we analyze profitability in India’s organized manufacturing sector from 1982–83 to 2012–13. Over the whole period of analysis, the rate of profit grew at about 1% per annum, primarily driven by a rising share of profits. We use visual inspection to identify five shorter-run profitability regimes: 1982–91, 1991–96, 1996–2001, 2001–07 and 2007–12. Profit rate decomposition analysis shows that both technological factors and aggregate demand have been important determinants of changes in profitability in these shorter periods.

Suggested Citation

  • Deepankar Basu & Debarshi Das, 2018. "Profitability in India’s Organized Manufacturing Sector: The Role of Technology, Distribution and Demand [The effect of neoliberalism on the fall in the rate of profit in business cycles]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(1), pages 137-153.
    • Handle: RePEc:oup:cambje:v:42:y:2018:i:1:p:137-153.
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    File URL: http://hdl.handle.net/10.1093/cje/bew068
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    Cited by:

    1. Debarshi Das, 2018. "A Model of the Marxist Rent Theory," UMASS Amherst Economics Working Papers 2018-10, University of Massachusetts Amherst, Department of Economics.
    2. Anirban Karak & Deepankar Basu, 2020. "Profitability or Industrial Relations: What Explains Manufacturing Performance across Indian States?," Development and Change, International Institute of Social Studies, vol. 51(3), pages 817-842, May.

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