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Industrial concentration in a liberalising economy: A study of Indian manufacturing

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  • Suma Athreye
  • Sandeep Kapur

Abstract

This paper studies industrial concentration in Indian manufacturing sectors over the period 1970 to 1999. Given that Indian industry was highly regulated till the mid 1980s, the market structure in most manufacturing sectors was largely shaped by government policy. Deregulation after 1985 allowed greater scope for normal competitive processes, so that concentration levels should progressively be determined by industry characteristics rather than government policy. We find that, on the whole, concentration levels were indeed more significantly related to industry characteristics after deregulation. However, even after controlling for these characteristics, there is considerable heterogeneity in the patterns of concentration in individual industries.

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  • Suma Athreye & Sandeep Kapur, 2006. "Industrial concentration in a liberalising economy: A study of Indian manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 981-999.
    • Handle: RePEc:taf:jdevst:v:42:y:2006:i:6:p:981-999
    DOI: 10.1080/00220380600774764
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    2. Ashish Kumar Sedai, 2019. "Wages in Imperfect Markets: A Post-reforms Study of Indian Manufacturing," Journal of South Asian Development, , vol. 14(3), pages 257-280, December.
    3. Sukhdeep Singh & Indrani Chakraborty, 2021. "Growth of the Firms and Investments in Innovations: An Empirical Investigation of the Indian Manufacturing Industry," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(1), pages 87-122, March.
    4. Ritabrata Bose & K.V. Ramaswamy, 2020. "Globalization and workforce composition in Indian formal manufacturing: New evidence on product market competition channel," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2020-036, Indira Gandhi Institute of Development Research, Mumbai, India.
    5. Smruti Ranjan Behera & Pami Dua & Bishwanath Goldar, 2012. "Foreign Direct Investment And Technology Spillover: Evidence Across Indian Manufacturing Industries," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 57(02), pages 1-23.
    6. Milind Jaiwant Sakhardande & Rajesh Suresh Prabhu Gaonkar, 2021. "Potential based ranking of sectors identified in ‘Make in India’ initiative using fuzzy AHP: the academicians’ and industry professionals’ perspective," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(2), pages 337-344, April.
    7. Ujjayini Roy & Indrani Chakraborty, 2024. "Market concentration, promoter ownership and firm performance: evidence from Indian corporate firms," Indian Economic Review, Springer, vol. 59(1), pages 27-85, June.
    8. smruti, Smruti Ranjan Behera, 2012. "Technology Spillover and Determinants of Foreign Direct Investment: An Analysis of Indian Manufacturing Industries," MPRA Paper 42178, University Library of Munich, Germany.
    9. Eckhard Siggel & Pradeep Agrawal, 2009. "The Impact Of Economic Reforms On Indian Manufacturers : Evidence From A Small Sample Survey," Development Economics Working Papers 22930, East Asian Bureau of Economic Research.
    10. Sukhdeep Singh, 2024. "Investments in Innovations and Market Structure: A Semi-parametric Approach," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 25(1), pages 26-44, March.
    11. Kambhampati, Uma S., 2006. "Financial liberalisation, corporate governance and the efficiency of firms in Indian manufacturing," Structural Change and Economic Dynamics, Elsevier, vol. 17(1), pages 46-69, January.
    12. Pradeepta Sethi, 2018. "Paradox of external finance in the Indian manufacturing sector," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 10(1), pages 95-111, April.
    13. 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.
    14. Jatinder Singh, 2011. "Inward Investment and Market Structure in an Open Developing Economy: A Case of India’s Manufacturing Sector," Journal of Economics and Behavioral Studies, AMH International, vol. 2(6), pages 286-297.

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