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Industry, Labour and the State

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  • Deepita Chakravarty

    (Centre for Economic and Social Studies, Begumpet, Hyderabad, India. Currently Sir Ratan Tata Fellow (2010–11), Asia Research Centre, London School of Economics and Political Science, London, United Kingdom. Email: deepita@gmail.com)

  • Indranil Bose

    (Political Science, St. Xavier’s College, Kolkata, India. Email: boseindranilcal@gmail.com)

Abstract

Despite the pursuit of similar industrial policies during the post-1990s, Indian states have revealed divergent outcomes in industrial growth. Such divergence suggests different levels of policy implementation which itself is a result of the interplay of formal and informal institutions, historically shaped. We try to ex-plain this divergence in the context of the evolution of state–business relations in West Bengal, a coastal state in Eastern India, and unique among Indian states not only by virtue of being ruled by a Leftist regime for an uninterrupted 34 years (1977—May, 2011), but also by having witnessed a turnaround of sorts in the outlook of the former government towards private capital within this period. Our findings suggest that it is the peculiarity of institutional behaviour that determines the policy outcomes in the state. The rigidities in political as well as economic institutions in the state are prompting us to look at West Bengal as a classic case of ‘institutional stickiness’ leading to ‘path dependency’.

Suggested Citation

  • Deepita Chakravarty & Indranil Bose, 2011. "Industry, Labour and the State," Journal of South Asian Development, , vol. 6(2), pages 169-194, October.
    • Handle: RePEc:sae:soudev:v:6:y:2011:i:2:p:169-194
    DOI: 10.1177/097317411100600202
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    References listed on IDEAS

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    1. Bardhan, Pranab & Mookherjee, Dilip, 2006. "Pro-poor targeting and accountability of local governments in West Bengal," Journal of Development Economics, Elsevier, vol. 79(2), pages 303-327, April.
    2. Dani Rodrik & Arvind Subramanian, 2005. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," IMF Staff Papers, Palgrave Macmillan, vol. 52(2), pages 193-228, September.
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