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Degree of Monopoly and Distribution of Income in India’s Organised Manufacturing Sector

Author

Listed:
  • Paramjit Singh

    (Panjab University
    York University)

  • Kriti Sharma

    (University of Toronto)

Abstract

The present study is an attempt to examine the development of monopoly capitalism in India through industry-level analysis of the change in the degree of monopoly and distribution of income. To this end, the Kaleckian approach has been applied to all the 56 three-digit Indian organised manufacturing industries listed in the Annual Survey of Industries covering the period 1998–2018. The data have been examined at four levels: the aggregate sectoral level, the aggregate of the top 25 per cent industries, the aggregate of the top 10 per cent and disaggregate analysis of the top 6 industries. The study finds strong evidence of the growth of monopoly power in the manufacturing sector with the rising growth rate of the economy, indicating the rise of monopoly capitalism in India. It also brings out the dominance of the top 25 and top 10 per cent (in terms of gross value added [GVA] share and employment) manufacturing industries) in the determination of aggregate monopoly power and the wage share in the organised manufacturing sector. The study finds that under monopoly capitalism, the rise of profits of the larger industries in India’s organised manufacturing sector primarily comes from the deduction of wages of production workers and the flow of surplus from smaller to larger industries.

Suggested Citation

  • Paramjit Singh & Kriti Sharma, 2024. "Degree of Monopoly and Distribution of Income in India’s Organised Manufacturing Sector," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(1), pages 129-155, March.
    • Handle: RePEc:spr:ijlaec:v:67:y:2024:i:1:d:10.1007_s41027-024-00478-5
    DOI: 10.1007/s41027-024-00478-5
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    References listed on IDEAS

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    1. Nicholas Kaldor, 1955. "Alternative Theories of Distribution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 23(2), pages 83-100.
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    More about this item

    Keywords

    Degree of monopoly; Kalecki; Labour share; Capitalist share; India; Monopoly Capitalism;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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