Sustainability of rural industrialization in India: a comparative analysis of rural and urban Indian industry
摘要
The Indian economy has been at work tirelessly for the last seven to eight decades, marching towards the path of economic development. However, the expected result of sustainable development is yet to be attained fully. While the economic process has been centered in the urban areas, major fraction of the Indian population continues living in the rural areas. The present study is an attempt to conduct a bifurcated country level study, utilizing the Stochastic Frontier Analysis (SFA) to validate the importance of rural devolution. Utilizing descriptive and inferential analysis, the present study pitches for a widespread endorsement of rural industrialization. The study empirically validates that 45% Indian industries are located in rural areas while 64% Indian population resides in rural areas. The elasticity of output with respect to the inputs is segregated and the factors affecting the firm level efficiency have also been empirically pin-pointed. Based on an extensive empirical evaluation the present study advocates the immediate need of endorsing the rural industry. The study concludes by making recommending the creation of rural industrial infrastructure particularly the digital inclusion to enhance the overall industrial outcomes of the country.