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Completed Projects

A number of sponsored research projects have been completed by the ISID. The sponsors of projects include Ministry of Finance and Planning Commission of the GOI, United Nations Center on Transnational Corporations (now part of UNCTAD), European Commission (EU), Asian Development Bank (ADB), International Labour Organisation (ILO), Food and Agriculture Organisation (FAO), Indo-Dutch Programme on Alternatives in Development (IDPAD) and the National Commission on Rural Labour. Besides, individual members of the faculty pursue their own research interests.

Spatial Dynamics of Manufacturing Landscape in India – A District Level Comparative Analysis of Pre- and Post-Reform Contexts

The study focuses on the changing manufacturing landscape of India between pre-and post-economic reform periods. As the pre-economic reform period was characterised by balanced regional development, development of manufacturing industries took place in some of the so-called industrially backward regions of the country. However, with economic reforms the focus has shifted to competitive edge in order to take advantage of the global capital. This has repercussions on the spatial reorganisation, reconstruction, and expansion of manufacturing industries as well as on associated factors of production, such as labour. The study tries to elucidate whether Indian manufacturing has experienced any significant spatial change in a temporal framework. The analysis is based on Economic Census (EC) of two time periods, viz. 1990 (3rd EC) and 2013–14 (6th EC). The 2-digit classification (3-digit wherever necessary) of manufacturing industries using National Industrial Classification has also been focussed upon. The study relies on the geographic information system (GIS) platform to enable overlays and bring spatial correlation. Statistical techniques like location quotient and spatial Gini coefficient are also being used to understand concentration and dispersal of manufacturing spaces. The research project is funded by the ICSSR. Dr Surya Tewari is the project director.

Performance of India’s Banking Sector: A Critical Focus on Non-Performing Advances (NPAs)

The study aims to analyse the performance of Indian banking sector with focus on NPAs. The study will attempt to provide critical insights into the NPA problem by exploring the nature and contributing factors of the current banking crisis in India. It analyses the NPA crisis in the context of the changing structure of India’s banking sector. It will provide a comparative analysis of the two phases of the NPA crisis in Indian banks and examine the possible impact of NPAs on Indian banks. The study will attempt to explore the factors responsible for the NPA problem, with emphasis on the role of bank specific factors in the current crisis. The role of operational governance and credit approach aspects of banks in the current NPA problem will be explored. The issues of wilful default and corporate performance will be analysed. Besides, critically analysing the current policy of NPA management framework, the study will suggest an appropriate policy framework for effective NPA management. The research project was sponsored under the IMPRESS, an initiative of the Ministry of Education, Government of India and implemented by the ICSSR. Dr Santosh Kumar Das is the project director.

Measuring the Changes in Factor Proportions vis-à-vis Factor Endowments of the Indian Economy – An Inter-temporal Study

The significance of factor endowments due to predictable effects on the industry structure mandates due consideration in formulating the industrial and trade policy. In the backdrop of the changing use of factors of production, namely labour and capital, and also the change in their relative use, the study provides estimates of factor ratios, factor proportions, and factor endowments over a period of time, covering more than two decades of economic liberalisation in the Indian economy. The computational emphasis has been to widen the measurement scope with improved precision. Using a combination of techniques, the research study attempts to sharpen the existing understanding of the structural relationship of the factors of production. The main contribution of this work is in the (i) parallel analysis on organised manufacturing, unorganised manufacturing, and unorganised services, and (ii) simultaneous consideration of capital and labour endowments. The research project is sponsored under IMPRESS, an initiative of the Ministry of Education, Government of India and implemented by the ICSSR. Dr Anjali Tandon is the project director.

Global Value Chain Engagement and Industrial Restructuring: A Study of the Indian Electronics Industry

Several policy reforms in India, including FTAs, have focused on attracting FDI to promote GVC engagement. This study explored electronics industry’s GVC engagement within a new analytical and methodological approach. The nature of value chain participation was assessed through in-depth analyses of related and non-related party transactions of selected foreign and indigenous companies, using firm-level financial and customs trade data. The study found that the gains from greater inter- and intra-industry specialisation and scale economies expected from FDI-led production restructuring associated with FTAs accrued predominantly to the lead firms. In-depth case studies established that in the case of both foreign-invested and indigenous firms, India was largely serving as the market for final products. Further, whatever success has been achieved under the industry-specific policies for increasing domestic value addition and export promotion was not translating into the creation of an indigenous manufacturing ecosystem; rather it was leading to forex leakages. Breaking this cycle requires the indigenous ownership of productive and knowledge assets to be built up through vertical industrial policies. The project was sponsored by the ICSSR. Dr Smitha Francis was the project director.

Changing Business Group Strategies in India: An Inquiry from the Lens of Mergers and Acquisition

There have been apprehensions on the disproportionate holding of wealth by the top business houses in India during the post-independence period. Such ownership of wealth not only provides business power, but also economic power. Drastic regulatory changes occurred during this period. Currently, competition assessment is based on narrowly defined markets and quantifiable evidence with political and social repercussions that are generally ignored despite the fact that economic power is at the heart of antitrust. This study found that the top business groups still control a major portion of output and profit. Their involvement in M&As is substantial, which has resulted in capacity and market expansion, and vertical linkages. From the policy point of view, apart from the general implications of M&As reflected in market shares and market competition, the synergy derived through ownership is important in efficiently utilising the resources under a common umbrella of business. This will not be reflected when competition is assessed in narrowly-defined markets. The study was sponsored by the ICSSR. Dr Beena Saraswathy was the project director.

Understanding Criticality of Flow of Funds for Robust Growth of MSMEs

The study aimed to understand the criticality of flow of funds for robust growth of MSMEs. Through theoretical and empirical underpinnings, the study observed that access to credit is critical for the performance of small firms. Although credit flow to MSMEs has increased over time in the recent decade, it has declined in terms of share of non-food credit and priority sector advances, which indicates increase in credit problems in MSMEs. The major constraints affecting MSME lending include poor entrepreneurial mindset of small entrepreneurs, poor selection of applications under schematic lending, fear of accountability if loan turns NPA, prevalence of corrupt practices in selection of applications, and lack of financial documents/statements, lack of awareness and financial literacy, lack of skilled and sufficient staff at branch level. In order to improve the credit flow to MSMEs, multipronged strategies involving all key stakeholders – banks, firms, and government institutions – are required. The project was sponsored by a consortium of public sector banks, namely State Bank of India, Bank of India, UCO Bank, Canara Bank, Corporation Bank, and United Bank of India. The research team included Mr Pradyuman Singh Rawat (Project Director), Dr Akhilesh Kumar Sharma (Principal Investigator), Prof M R Murty, Dr Sangeeta Ghosh, and Dr Mitali Gupta.

Industrial Trade and Investment Policies: Pathways to India’s Industrialisation

The objective of the research project was to (i) identify continuities and departures in India’s production pattern, investment and employment trends, degree of engagement through trade, FDI and technology assimilation, and the status of infrastructure and human capabilities; and (ii) comprehend an industrialisation strategy given the constraints and emerging opportunities.

The report is organised in four sections. Section I deals with structural issues, and consists of six chapters. These present structural changes in the organised manufacturing sector, developments in the large private corporate sector, competition and concentration, implications of financial liberalisation on industrial finance, and issues relating to adoption of Industry 4.0. Five chapters in Section II analyse the developments in external trade with specific reference to competitiveness, import intensity, domestic value addition, trade agreements and India’s participation in global production network. Foreign direct investments and technology transfer are the subject matter of the four chapters in Section III. The last section deals with regional development issues with focus on spatial distribution of workers, SEZs, and industrial corridors. Based on the evidence generated, each chapter presents suggestions for addressing the lacunae in the industrial, trade, and investment policies that have been followed so far, towards strengthening India’s industrial development efforts. The ICSSR sponsored study was undertaken by a team of the Institute’s faculty with Prof M R Murty as the programme director and Prof T P Bhat as the co-director.

The programme consisted of the following papers:

  • Economic Reforms and Market Competition in India: An Assesment, Dr Beena Saraswathy
  • Import Intensity of India’s Manufactured Exports – An Industry Level Analysis, Dr Mahua Paul and Dr Ramaa Arun Kumar
  • India and Industry 4.0, Prof T P Bhat
  • Industrial Structure, Financial Liberalisation, and Industrial Finance in India, Dr Santosh Kumar Das
  • Outward FDI from India: Review of Policy and Emerging Trends, Dr Reji K Joseph
  • Review of Industrial and Development Corridors in India, Prof H Ramachandran
  • Special Economic Zones: Location and Land Utilisation, Dr Surya Tewari
  • Structural Asymmetry in Global Production Network: An Empirical Exploration, Dr Satyaki Roy
  • Foreign Direct Investment and Innovation Activities in Indian Manufacturing Industries, Dr Sanjaya Kumar Malik
  • Inbound M&A in India: Issues and Challenges, Prof K S Chalapati Rao and Prof Biswajit Dhar
  • Impact of Preferential Trade Liberalisation on India’s Manufacturing Sector Trade Performance: An Analysis of India’s Major Trade Agreements, Dr Smitha Francis
  • Is Domestic Value Addition a Source of Export Sophistication: A Case Study of India, Dr Anjali Tandon
  • Liberalisation, Structural Change and Productivity Growth in Indian Organised Manufacturing Sector, Dr R Rijesh
  • Non-Financial Private Corporate Sector and India’s Manufacturing Sector: A Comparative Study of Domestic and Foreign Companies, Prof M R Murty and Prof K V K Ranganathan
  • Outward FDI as a Strategy for Technology Catch-Up: A Case Study of Two Indian Automotive Firms, Dr Reji K Joseph
  • Spatial Distribution of Workers in Manufacturing India – 1991 and 2011, Prof H Ramachandran and Priyanka Tiwari
  • Strengthening Export Competitiveness through Domestic Policies, Dr Ramaa Arun Kumar and Prof Biswajit Dhar
  • Technology Transfer through FDI in India: Mode, Extent, and Prospects, Dr Swati Verma.
Understanding FDI-linked Trade Through Related Party Transactions: A Study of Manufacturing Foreign Subsidiaries in India

The intra-firm trade by MNC linked firms are highly susceptible to transfer pricing manipulation for profit shifting (BEPS), especially in developing countries, as many recent studies have indicated. The issue remains largely unexplored in the Indian context due to limitations of intra-firm foreign trade data, especially for unlisted firms. The study attempted to estimate and the trace extent of intra-firm transactions in foreign exchange transactions of foreign affiliates operating in the manufacturing sector of India. A closer examination of a range of merchandise trade, technology and service payment related transfers has been undertaken for listed and unlisted foreign affiliates over two recent years viz. 2014–15 and 2015–16. The outflows directed to tax havens and low corporate tax rate locations have been particularly identified. For the study, the information on related party transaction disclosures has been analysed from company financial statements procured from the website of Ministry of Corporate Affairs. The study was sponsored by the ICSSR and the final report was submitted to the Council in October 2019. Dr Swati Verma was the Project Director.

Urbanisation and Human Capital Development in Assam

The study examines the relationship between urban population, educational infrastructure, and human capital, particularly with reference to the state of Assam. The state, with a diverse topography and spatial distribution of resources, with each setting incorporating uniqueness, provides both challenges and opportunities from policy perspectives. In light of this, the study

  • dealt with the patterns and growth of urbanisation in Assam, and developed a hierarchy of urban centres based on urban infrastructure and ranked the cities based on living conditions;
  • addressed the issue of developing a methodology of human capital development index at the district level; and,
  • analysed perceptions among sample students and trainees of Polytechnics and Industrial Training Institutes in Assam and students from Assam studying in institutions of higher education in Delhi relating to educational and employment aspects.
  • In conclusion, the study proffered policy directions that need to be pursued. This study, sponsored by the ICSSR under its research programme scheme on “Special Areas and Special Programmes”, was submitted to the Council in November 2019. Prof. H. Ramachandran was the Programme Director and Dr Poonam Sharma was Co-Director.

Portrayal of Women: An Empirical Study of Advertising Content–Issues and Concerns

The research study aimed to look at the content of advertising to enquire into stereotypical and inappropriate portrayal of women across five brand categories, viz. FMCG (Fast-moving Consumer Goods), Lifestyle, Automobile, BFSI (Banking, Financial Services, and Insurance), and Travel & Hospitality since 1991, the era of economic liberalisation. The study included survey of the advertising industry to map the minds of creative teams and top management to know about the presence or absence of gender sensitive policies in creating ad content and for women working in the ad sector. The study analysed a number of laws and policies to look at the need for amendments in curricula of academic courses in mass communication being offered at undergraduate and post-graduate levels and to enquire into presence or absence of gendered and inclusive syllabus. The research programme was sponsored by the ICSSR and the final report was submitted to the Council in October 2019. Prof. Jaishri Jethwaney was the Project Director and Prof. Seema Goyal was Co-Project Director.

Liberalisation, Technology Import and Industrial Development: A Study of Organised Manufacturing Sector in India

This study examined the nature and impact of technology import on Indian manufacturing using firm level data. The basic objective was to examine the impact of technology import in the form of embodied (capital goods) and disembodied (foreign exchange spent on royalties, technical fees, licencing, etc.) on manufacturing output, productivity and exports, during 1995–2016. The empirical estimation is based on panel regression analysis for the overall manufacturing as well as four use-based classifications of industries. The study reported evidence of dynamic gains in manufacturing from the import
of technology. The study was sponsored by the ICSSR and the final report was submitted to the Council in November 2018. Dr. R. Rijesh was the Principal Researcher.

Garment Cluster in Kolkata: The Untold Story of Expansion Relying on Low-end Domestic Demand

A persistent delinking of growth and employment during the high growth phase of Indian economy followed by sluggish growth in the aftermath of global financial crisis together with alarming signs of absolute decline in manufacturing employment is the pretext for a quest towards a growth trajectory that facilitates gainful employment. This study focussed on an industrial cluster producing readymade garments in Kolkata, West Bengal. It has hardly attracted attention hitherto by policymakers, mostly unnoticed in the huge gamut of cluster studies, possibly because this cluster has a low share in exports of garments despite having the largest share in domestic readymade garments market. Since it
provides employment to a huge workforce in different layers, products of this cluster are being sold across India, and more importantly, the producers hardly face any constraint in demand barring discrete episodes of short-term shocks. It primarily offers a case that once again reasserts the importance of domestic market particularly in the context of a large country like India. Even though it emerged as an artisanal cluster largely populated by small and tiny producers, mostly job workers, the study took contesting trends of fragmentation on the one hand, and vertical growth on the other. Further, the study argues that entrepreneurial skills, capabilities of labour and institutions that emerged from within the cluster gave rise to a production organisation that had shown immense capability in responding to changing demand over time, but it largely remained confined to the low-end of the garments market. The study was completed in November 2018 as part of the multi-institutional collaborative project with IGIDR titled “Manufacturing Matters: A Research Proposal for Employment Oriented Industrialisation,” funded by Ford Foundation. Dr. Satyaki Roy was the Principal Researcher.

Financialisation in India: Nature and Implications with Special Focus on Corporate Sector

The study locates financialisation as a process that increasingly mediates transactions in the economy at various levels. Notable is the fact that in a financialised economy, growth of profit seems to move faster than the growth of investment and a trade-off between growth and profitability constraints the decision-making process of an individual firm. It has wider ramifications, giving rise to a puzzle at the macro level, which is that profit making increasingly gets disconnected from the activity of production, as a result of which accumulation occurs without commensurate increase in productive employment. In this context, the study primarily aimed at understanding the nature and extent of financialisation in India. It identified the major macro-level trends and discussed the findings in reference to stylized facts of financialisation relating to advanced countries. Besides the broad trends of the weakening link between growth and investment, financial landscape in India is undergoing change, evincing early signals of growing importance of non-banking financial entities, non-banking activities of banks, increased resource mobilisation through capital markets, and banks’ increased focus on household financing. It then closely dwells on the emerging patterns of financialisation within the corporate sector of India, arguing that growth of profit has been, on an average, higher for financial companies compared to non-financial companies; there has been a decline in the growth rate of investment in plant and machinery although it hardly affected the operating margins of corporate firms, particularly in the manufacturing sector. Furthermore, in the case of advanced countries, decline in aggregate demand caused by a declining share of wages was partially and temporarily mended by debt-financed and wealth-based consumption of the working class that are largely integrated with the financial market. In the case of India, the slowing down of demand caused by a repression of wages together with not so high degree of financialisation of household income was expected to be temporarily displaced through wealth-based and debt-financed consumption of the middle class. In the end, the study analytically put the identified trends in the perspective of globalised finance and discussed how the current trends are driven by the imperatives of global capital. The research project was sponsored by the ICSSR and the final report was submitted in January 2019. Dr. Satyaki Roy was the Principal Researcher.

FDI in R&D and Development of National Innovation Capabilities: A Case Study of India

This study was undertaken in the light of data showing that FDI in R&D (RDFDI) constitutes a significant share of FDI inflows to India and that India has emerged as a major destination among developing countries for offshore corporate R&D. The study aimed at examining the significance of RDFDI in FDI inflows to India and the impact of RDFDI on innovation capability. It was found that RDFDI constitutes only a minuscule share (less than 0.5 per cent) in total FDI inflows. Information & Communication Technology (ICT), Natural Sciences & Engineering, and Pharmaceuticals are the major sectors receiving RDFDI inflows. Much of the RDFDI inflows to these three sectors was to subsidiaries of foreign firms. While subsidiaries of foreign firms received investments from their parent firm, other firms preferred to receive investments from private equity investors and individual investors. Foreign subsidiaries operate as support labs providing R&D services to the parent firms. There is no transfer of technology to the subsidiaries and no adoption of technology by them. There is no linkage with the domestic production system or academia except for a few cases of collaboration with higher education institutions by a few firms in the ICT sector. Most of the Indian RDFDI firms are also engaged in providing R&D services. But a few of them make an attempt to develop new technologies in their area of specialisation. The study was sponsored by the ICSSR and the fi nal report was submitted in March 2019. Dr. Reji K. Joseph was the Principal Researcher.

Penetration and Effectiveness of Health Insurance Schemes in India

The study examined the role of government-funded health insurance schemes in providing financial risk protection against medical cost and improving access to healthcare in India and the state of Rajasthan using secondary and field survey data. The results were presented around accessibility, availability, acceptability, affordability, and financial protection indicators to show the effectiveness of the insurance-based system. The study found positive impact of insurance in improving the access to medical care use and reducing inpatient spending burden of households. Access to healthcare was found to be high in high provider network areas/districts. Given the intrinsic market failure in the insurance-based system, the study suggested establishing national, nodal, and regulatory agencies across states. These should be highly competent and efficient purchasing agencies, particularly with respect to (i) selecting qualified providers to contract services, (ii) negotiating with providers for price and the mode of payment, and (iii) contracting to provide quality care. For this purpose, a system need to be developed to collect proper market information and accurate data on cost/price. If the government decides the package rate on the basis of current high-priced privately dominated market, it will cost more to the government in the form of premium payment. The project was sponsored by the ICSSR and the final report was submitted to the council in March 2019. Dr. Shailender Kumar Hooda was the Principal Researcher.

Import and Performance of Indian Manufacturing Firms: Empirical Analysis

The objective of the study was to examine the impact of firm import on manufacturing output based on company-level data from Prowess IQ database. The selected manufacturing firms were distributed across capital goods, intermediate goods and consumer goods manufacturing firms. The firms, as a whole, comprise an unbalanced panel of 1707 firms and balanced panel of 570 firms. The empirical analysis is carried across the use-based product firms during the period 2000–2017. The trend analysis reveals a significant increase in imports across all manufacturing firms. The intermediate goods-producing firms, which have the largest sample size in terms of a larger share in the use of production inputs including R&D, were found to be the largest consumers of imported inputs from abroad. The largest imported items were raw materials followed by capital goods and finished goods. This indicates the growing demand for imported inputs by the Indian manufacturing sectors. In terms of annual growth rates, most of the production indicators show double-digit growth rates. However, the period- wise analysis indicated a slowdown in manufacturing in terms of sales, wages, import, etc., since the onset of the financial crisis in 2008. The panel regression based on Fixed Effects revealed a significant positive impact of imports on firm output.

A comparative analysis across groups aslo revealed that the intermediate sectors largely benefited from imported inputs. Among all groups, there was strong evidence of a significant positive impact of raw materials on firm output in recent decades. Moreover, the internal technological capability, in terms of domestic R&D, was found to have a positive impact on output. Thus, the results validated the presence of dynamic gains from international trade on Indian manufacturing firms since liberalisation. The study was part of a research project titled “India’s Import from China: An Analysis of Impact on Indian Manufacturing Sector,” sponsored by the Ministry of Commerce & Industry, Government of India to Indian Institute of Foreign Trade (IIFT), New Delhi. The project report is submitted in March 2019. Dr. R. Rijesh was the Principal Researcher.

Asset Quality of Scheduled Commercial Banks

The Indian financial sector which is primarily bank-based is facing serious challenges on account of growing NPA problem. Despite having several preventive measures in place, the volume of NPAs has gone up substantially in recent years. Growing NPAs, which reflect deterioration of asset quality, is a cause of concern as it can have adverse impact on the stability of the banking system and the economy as well. Stagnated credit growth, coupled with increase in stressed assets has impacted the profitability of the banking sector substantially. While the source of stress in the banking system seems to be coming from the poor performance of the corporate loans, worrying factor continues to be the accumulation of stressed assets by the Public Sector Banks (PSBs). In this backdrop, the study attempted to explore different dimensions of the current phase of NPA problem of Scheduled Commercial Banks. Given the limitations of data and unavailability of any systematic micro level loan default data, the study made an attempt to explore the following aspects: (i) state of NPAs of the Indian SCBs; (ii) impact of rising NPAs on banking performance; (iii) factors responsible for NPAs; and (iv) ways to manage the existing stressed assets and suggest preventive measures to avoid accumulation of stressed assets in future.??

The study found that the source of the stress in the banking system is primarily the large corporates. While at a broad sector level the industrial sector is found to be the source of stress for the banking sector in terms of loan default, the analysis shows that NPAs are high in the following sub-sectors: infrastructure; basic metals and metal products; cement and cement products; construction; textiles; mining and quarrying; and transport equipment. The impact of accumulation of stressed assets is evident from the fact that the profitability of the banking sector has gone down substantially.??

There can be various factors responsible for the growing NPAs. The roles of three key agencies???the lender (banks), borrower (borrowing entities), and the prevailing economic environment???have been explored to gain insights into the above problem. While it is difficult to single out any specific reason for the current NPA problem, the analysis has suggested a set of issues or factors that seem to have played a critical role in the above situation.

The phenomenal increase in NPAs and the wilful defaults over the last three years raise serious questions on the effectiveness of NPA management and its mechanisms. Given the potential adverse impact that the increasing incidence of NPA might cause, it is crucial that its resolution takes place in a timely manner in order to limit its negative impact on banks and the economy as a whole. Based on the findings, the study has recommended a set of measures that would be useful to address the growing NPA problem in the Indian banking sector. The research project was sponsored by Canara Bank, Bank of India and the Corporation Bank. Dr. Santosh Das and Mr. Pradhyuman Singh Rawat were the Principal Researchers and Final report submitted to the banks in March 2018.

Emerging Patterns of Outsourcing and Contracting in Pharmaceutical Manufacturing in India: Implications for Industrial Upgrading
The pharmaceutical industry???s structure is changing due to the impact of pathways chosen by the firms for global integration of the industry. The study sought to understand the nature of emerging constellations of interactions between large and small firms in the area of manufacturing of bulk drugs and formulations. The broad objectives of the study are:

  1. To determine the relationship and nature of foreign and domestic firms with small firms through the channels of outsourcing, contracting, takeovers and integration into a global pharmaceutical production and innovation networks and the implications for learning innovation and competence building.
  2. Contribution of outsourcing and contracting in the manufacture of pharmaceuticals to technology transfer and upgrading of capabilities;
  3. Role played by the policies for regulation of FDI, price control, competition, cluster upgrading, public procurement, R&D support, intellectual property protection, standards of drug approval, quality control, clinical trials, etc.

Field investigations were carried out to study the implications for the processes of capability building for production, operations and manufacturing innovation of the emerging practices of large foreign and domestic firms. The two-year study was sponsored by the ICSSR. The draft report was completed in November 2017 and Final Report was submitted to the ICSSR in January 2018. Prof. Dinesh Abrol was the Project Coordinator.

India's Recent Inward FDI Experience: Perceptions and Possibilities
The Institute monitors India’s cross-border capital flows in an ongoing manner. India’s reported FDI inflows recorded a sharp rise in 2014-15 to $45 billion from the previous year’s level of $36 billion. The increase continued in 2015-16 as the amount reached almost $56 billion, 2016-17 saw further heights being achieved. This increase is widely seen as an indication of the success of the initiatives taken by the new government which assumed office at the Centre towards the end of May 2014. Notwithstanding the high importance attached to FDI in India’s economic policy, not much is, however, known about this development beyond the broad aggregates released by the official agencies. The reported inflows are taken at their face value and are referred to and interpreted by national and international agencies, academics and analysts, unquestioningly.

Encouraged by the initial analysis which revealed some little known but very important features of the reported inflows, the exercise was carried further taking into account more recent data and following the leads thrown up at various stages. The exercise not only raises serious questions about the suitability of FDI data for policy analysis, but it also brings out sharply the high levels of disinvestments. A workshop was organized in January 2018 to discuss the draft report. Like the preceding Policy Brief, the observations of the draft report were also covered by the print and online media. This internal study was carried out by Prof. K.S. Chalapati Rao and Prof. Biswajit Dhar. It was finalised in March 2018 under the title “India’s Recent Inward Foreign Direct Investment: An Assessment”.

Foreign Direct Investment in India and the Role of Tax Havens
Foreign Direct Investment (FDI) has gained enhanced traction from governments across the world as a tool to facilitate economic growth, especially by capital scarce developing countries. Increasingly, this has prompted governments to provide incentives of various kinds to foreign investors in order to attract FDI. One such incentive takes the form of Double Tax Avoidance Agreements (DTAAs) which are aimed at facilitating investment and trade between the signatory jurisdictions. However, findings in the last few years suggest that DTAAs are being used to route capital flows, especially through jurisdictions known as tax havens. In this context, the study looked at the source country-wise flow of foreign direct investment into India during the 2004-14. The study made use of a dataset, which identified the ultimate controlling or parent entity/company of individual foreign investment inflows to India and the country that entity/company is based, i.e. its home country. These details of where the actual investor is based helped in separating the investment flows which come directly from their home country to India, i.e. the host country, from those that are routed through a different country/jurisdiction to take advantage of some regulatory arbitrage.

The findings of the study suggest that close to two-thirds of FDI inflows to India come through a country other than the home country of the foreign investor. Majority of the funds are routed through jurisdictions which are commonly known as tax havens and/or secrecy jurisdictions. In fact, there is a strong positive correlation between routing of funds and the level of secrecy offered by the respective jurisdictions. We also find that jurisdictions which are used for routing capital flows have lower effective tax rates for investments in India compared to the respective home countries of the investors, thereby creating an incentive for treaty shopping. The most likely tax benefit for the routing of investments is ???capital gains taxes???. Since, capital gains taxes are applicable only for inflows when investments are disposed off, they are more likely to be portfolio investments instead of FDI. The removal of such tax benefit to select jurisdictions is unlikely to affect the inflows of realistic FDI, i.e. the inflows which are besides being of long term nature would be associated with technology transfer, superior managerial practices, etc. Lastly, the study discusses some of the changes, both domestic and global, that have taken place in the areas related to FDI and capital flows in the last few years. The study was jointly undertaken by Centre for Budget and Governance Accountability (CBGA), New Delhi and ISID in September 2017. Shri Suraj Prasad Jaiswal of CBGA is the Principal Researcher.

Changing Perspectives of Women's Work and Decline in Female Labour Force Participation Rate in Rural India: A Case of Odisha
Falling employment opportunities for women, especially in rural areas, continues to remain as a conundrum for the Indian economy, in a period when the economy is witnessing accelerated economic growth, rising education levels among women, and falling fertility rates. Recent evidence from national statistics indicates that there has been huge decline in female labour force participation rates in rural India. A large amount of literature has also examined recent trends in rural female labour force participation, mostly based on secondary data. In contrast, this study based on secondary data and primary survey (household information gathered from 450 households in nine villages chosen from three districts of Odisha) revisited various aspects of women’s work and the phenomenon of declining female labour force participation rate. The study explored various factors such as social, demographic, economic and cultural that are affecting the labour force participation rate of women in rural areas.

The study came out with many interesting results which have important policy implications. The analysis also opened up a rich research agenda, including further investigation of various issues regarding women’s work, who remain voiceless and confined to the marginal spaces of the formal and informal sectors of both the economy and the society. The study was supported by the S.R. Shankaran Chair National Institute of Rural Development and Panchayati Raj (NIRD&PR), Hyderabad. The final report of the study was submitted in April 2017. Dr. Partha Pratim Sahu was the Principal Researcher.

Information Technology Industry of India and Indian Pharmaceutical Industry
Two studies, IT Industry of India and Post-TRIPS Pharmaceutical Industry in India, are taken up as part of the project on Innovation, Economic Development and IP in India and China sponsored by Max Planck Institute for Innovation and Competition, Germany and Applied Research Centre for Intellectual Assets and the Law in Asia (ARCIALA), Singapore Management University, Singapore. The first study ??? IT Industry of India highlights the role of government policy in the development of electronics industry and the ITES sector. However, it is argued that these industries have not been driven by continuous innovation. The dynamics of these industries in India was very different from their global hubs where innovation systems together with intellectual property regimes played an important role in their growth.??

In the second study ??? Post-TRIPS Pharmaceutical Industry in India, the TRIPS compliant patent law of India as well as the performance of Indian pharma industry during the post TRIPS-era are discussed. Most of the performance indicators show an upward trend during the last two decades; but their growth rates have been falling. This makes it difficult to draw firm conclusions on the performance of the industry. However, on two indicators ??? R&D and patenting, there is a clear upward movement, which indicates much better performance. Both the studies are under review process for publication. The study was undertaken by Dr. Reji K. Joseph, Associate Professor, ISID and Prof. Biswajit Dhar, IPR Chair Professor, Jawaharlal Nehru University, New Delhi.

Report on India's Pharmaceutical Pricing Policy (NPPP), 1979???2013
The study deals with a comprehensive evaluation of the National Pharmaceutical Pricing Policy (NPPP), 2012 and the Drugs Price Control Order (DPCO), 2013 besides the past DPCO 1979-2013 and examines implications of the policy both in terms of access to medicines and industrial development. The key findings of the study are: i) One can expect the outcomes of prices of medicines to remain market-led (status quo) since the Drug Price Control Order (DPCO) of 2013 utilizes the formula of market determined pricing to undertake price regulation rather than price competition. Market will continue to be led by large firms while small and medium scale firms will continue to be at a disadvantage; ii) The pharmaceutical industry is characterised by high levels of market concentration. Out of 1468 sub-therapeutic categories of medicines, 73 per cent sub-therapeutic (1072) categories exhibited high concentration as measured by the Herfindahl-Hirschman Index; iii) The coverage of drugs under the DPCO 2013 is limited to only about 17 per cent of the drugs being prescribed and promoted at present in the country; iv) Analysis of the impact of the DPCO 2013 on the prices for marketing and sales leaders and those who have a share of 1 per cent in the market indicates that the price impact of the implementation of DPCO 2013 is marginal for the consumers buying drugs from the retail market; v) The absolute decrease in sales because of price control is estimated at less than 2 per cent (Rs. 1,300 crore) of the total market turnover. Therefore, not much relief can be expected to flow to the consumers; vi) The DPCO 2013, through its shortcomings, also provides pharmaceutical companies with several escape routes from price control. It not only permits the presence of a substantial inessential/irrational/unsafe medicines to be marketed, but also encourages its growth by allowing a 10 per cent increase in prices each year; vii) DPCO 2013 does not address the challenges of achieving cost-competitiveness and indigenous development of the bulk drug industry; and, viii) therefore, the choice of the drug price control mechanism must be made keeping in view the prevailing market situation and the need to safeguard indigenous industrial development and the scope to develop competitive public procurement by states.

The findings of the study were extensively used by the National Pharmaceutical Pricing Authority (NPPA), Department of Pharmaceuticals, Ministry of Health and Family Welfare, Government of India and civil society organisations while defending their case in a PIL filled in the Hon`ble Supreme Court of India on drug prices. The study was jointly undertaken by ISID and PHFI and presented in a Two-day National Conference organised by the Institute during March 06-07, 2014. Prof. Dinesh Abrol of ISID and Dr Shaktivel Selvaraj, Ms Malini Aisola and Ms Aashna Mehta of PHFI are the principal researchers.

Estimating Impact of Increase in Tax on Prices of Tobacco Products in India: An Empirical Analysis
Tobacco consumption is responsible for 9 to 10 percent of global mortality and considered as one of the major risk factors for non-communicable diseases (NCD). The World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC) held in March 2003 outlined that tobacco taxation is the most cost-effective intervention to reduce consumption. The FCTC stipulated that all tobacco products be taxed at a tax incidence of 70 percent. A tax-driven price hike of tobacco products is expected to reduce tobacco consumption, more particularly among the current users while preventing the initiation among new users. Tobacco taxes in India, however, have not resulted in reducing tobacco consumption at the population level. Given this fact, the study examines the effectiveness of tobacco taxes in India, and, makes several observations, including on the real value of output and sale of tobacco (registered and unregistered) manufacturing industry, and affordability of various tobacco products both at the national and state levels, dominance of firms on tobacco control policy.

In order to use taxation as an effective instrument of tobacco control in India, the study recommends: (i) removal of all differential in excise duties and VAT rates on cigarettes to make the rates high and uniform across filtered cigarette and sizes, (ii) excise duty on tobacco products must be levied based on per gram of tobacco content on its products, (iii) equal percentage of tax burden across segments/lengths and brands of cigarettes so as to reduce demand substitution between them, (iv) not only the tax on beedies should be increased manifold, but the distinction between handmade and machine made beedies for the purpose of levying excise duty be also abolished, (v) increase in tax burden (through rise in excise and VAT rate) to 70 per cent of retail price of tobacco products as against the current rates of 20 per cent in the case of beedies and 55???59 per cent on cigarettes, (vi) broadening of tobacco tax net by bringing informal players into the tax net. Simplify tobacco tax structure and improve tax administration to impose and collect excise & VAT from informal manufacturers, and finally, (vii) to move towards the long overdue Goods and Services Tax (GST) regime. While doing so, the government could impose the maximum duty (Central GST and State GST) on tobacco products in the 3-tier structure as envisaged.

The study was jointly undertaken by ISID and PHFI and WHO provided the financial support. A draft report was submitted to WHO in March 2014. Dr. Shailander Kumar Hooda of ISID and Dr. Sarit Kumar Rout, Mr. Pritam Dutta and Dr. Swati Srivastava of PHFI are the principal researchers.

Ports as Infrastructure, Ports as Cities: The Indian Port System from Colonialism to Globalization
Sea-ports represent a complex interplay of physical, spatial and socio-economic phenomena and are invariably the centres where different kinds of interactions and dependencies in the supra-national economy are worked out, be it under colonialism or under the modern phase of ???globalisation.???

The objective of the study is: i) to chisel the concepts and theoretical frameworks relevant to the historical and spatial analysis of sea-ports, port systems and port-cities. This is necessary because most of the concepts en vogue have acquired varying theoretical meanings in social science and port planning literature; ii) to trace the evolution of the Indian sea-port system from the colonial period, when the introverted economy of the country was reoriented and focused on sea-ports, to the present day, when India is being increasingly drawn into the world economy; iii) to analyse the Indian port-cities within the national systems of ports and cities and thus outline the linkages between the port and city functions; and, iv) to underpin the various factors that have historically influenced the performance, management and future prospects of Indian sea-ports. The project was sanctioned by the Indian Council of Social Science Research (ICSSR) in November 2012 and it is to be completed by November 2013. Preparation of the final report is under progress and ICSSR granted an extension of time up to March 2014 owing to the vast range and scope of the study. Prof. Atiya Habeeb Kidwai, formerly Professor at JNU is the Project Director.

Imperialism and the New World Order: Departures and Continuities
The study includes various aspects of the current phase of neoliberal globalisation and the way it resembles the idea of imperialism. The paper, as part of the larger study, is primarily looking into how theories of imperialism changed over time and the socio-historical perspectives that caused conceptual departures. Starting from liberal theories to that of Marxian tradition the paper underlines the historically contingent nature of the idea of imperialism. It informs the theoretical continuities and departures in the notion of imperialism, especially in the context of the present state of deterritorialized and decentered capitalism. The asymmetries and division of world have become far more complex than what it was in the early twentieth century and the study aims to capture the emerging complexities of global hierarchy. The study is part of the ICSSR research programme ???A Multi-Dimensional Study of Imperial Order and its Journey towards Neoliberal Imperialism under Globalisation??? and is being undertaken by Dr Satyaki Roy; the draft report was completed in March 2014.
Regulating FDI in Multi-brand Retail Trade (MBRT): Some Key Concerns
After a long and winding process spanning nearly one and a half decades starting from permitting 100 per cent FDI in Cash & Carry Wholesale Trade through the approval route in 1997, the government finally allowed FDI up to 51 percent in multi-brand retail trade (MBRT) in September 2012. The opening up has, however, not been smooth because of fierce opposition from various quarters???not just from kirana stores which are perceived to be the ones that would be affected the most. India, therefore, allowed FDI in multi-brand retail trade with certain safeguards, the most important ones being: (i) minimum inflow to be $100 mn, of which 50 percent to be spent on developing back-end infrastructure; (ii) minimum 30 per cent procurement from small industries; and, (iii) location within larger cities with at least 1 million population. The effectiveness of these conditions will depend upon the manner in which the guidelines are framed.

The study seeks to trace the evolution of the policy since the mid-2000s and highlight various interactions, representations, policy changes, corporate actions and some operational aspects of foreign wholesale traders. A part of the ongoing work has been accepted for publication in the Volume of the International Seminar in Retailing vis-??-vis Farm Economy of India to be published during 2014???15. Certain issues are still evolving and these could impact the policy towards the sector significantly. It is proposed to bring out a monograph during 2014???15 covering these further developments. The study is being jointly undertaken by Prof. K.S. Chalapati Rao of ISID and Prof. Biswajit Dhar of RIS.

Employment in India???s Economic Development: Approaches, Policies and Performance
Employment has found a place among the major objectives in the development agenda for India right from the initiation of development planning. During the initial two decades of planning, employment was seen both as a way to utilize labour for development and to prevent emergence of unemployment. Employment was seen as a corollary of economic growth. Economy, however, grew at a lower rate than envisaged and labour force grew at a higher rate than projected. An effort was, therefore, made in mid-1970s, to introduce an employment-orientation in the pattern of growth by laying special emphasis on employment intensive sectors. Also, special programmes of self-employment and short-term wage employment in public works were introduced.

With the availability of comprehensive data from the NSSO surveys, periodical assessment of the extent and trends of employment and unemployment became possible and was attempted in each of the Five Year Plan documents starting with the latter half of 1970s. But the fact that employment needs to be included as a concrete goal of development planning was, however, recognized in mid-1980s when employment targeting was included as part of the plan exercise. The exercise was reviewed over the next decade.

Starting with the 1980???s, the Indian economy moved to a higher growth path and the trend was further strengthened with the introduction of economic reforms in 1991. It was higher growth that was, by and large, to be relied upon for achieving the employment objective. However, the experience of the 1990???s belied all expectations. A renewed urgency to bring employment back into focus formed the basis of a new approach to employment in the Tenth Plan (2002???2007). By the middle of the first decade of the new millennium it seemed that expectations regarding growth of employment were more or less fulfilled and that employment may not pose such a great challenge. However, the prospects of employment generation seem to have been overestimated as they were based on elasticities observed in recent past which were suspected to reflect a rather ???spurious??? growth of employment.

Further, the outcomes of planner???s efforts to incorporate employment in growth strategy have largely been disappointing in the Indian case. Though employment growth has taken place, it is of poor quality in terms of productivity and income. As a result, employment growth has not always been accompanied by corresponding decline in incidence of poverty. It is in the above context that the study attempts:

  • A critical analysis of the approaches to employment in Indian Five Year Plans with a view to examine how far the idea of mainstreaming employment in growth strategy was followed;
  • An account and assessment of macro-economic and sectoral policies and special employment programmes in terms of their impact on employment;
  • A comprehensive account of the growth of employment over the last four decades in sectors, sub sectors and rural-urban location;
  • An analysis of the dynamics of qualitative and structural dimensions of employment in terms of sectoral composition, and employment status categories and organised-unorganised segments; and,
  • Development of a framework for an employment-oriented growth strategy and policy interventions required for it.

The report was prepared and submitted to ICSSR under the National Fellowship Programme by Prof. T.S. Papola in July 2013.

Short-term Research Studies on Industrial Sector using ASI and DGCI&S database for Department of Commerce, Ministry of Commerce and Industry
  • ???Linkage between growth and manufacturing sector and reflected by ASI and Growth in Exports given by ITC-HS???;
  • ???Macro Analysis for working out elasticity of demand for top 10 commodities of India???s exports (1999-10 to 2008-09 and 2009-10 to 2011-12)???
The Globalisation, the Development Question and the Current Crisis of Capitalism: A Study of China and India
The study was related to different aspects of development in the context of globalisation with special reference to China and India and was carried out by Prof. Sunanda Sen during March 2010 to March 2012 as part of her ICSSR National Fellow at the institute. The papers covered under the broad subject dealt with theoretical position on global financial flows offering a view which deviates from the condescending attitudes in standard neo-liberal doctrines. The themes handled in these papers range from the systemic crisie as are inherent in the on-going flows of de-regulated global finance, their consequences in terms of instability and lack of growth, parallels between the current crisis and the Great Depression of the thirties, impact of speculation on commodity markets and finally, problems of managing finance in de-regulated economies with special reference to China and India. The Report was submitted to the ICSSR in December 2012.
Structural Changes, Industry and Employment in the Indian Economy: Macro-economic Implications of Emerging Pattern
The recent pattern of structural changes raises a few basic questions relating to sustainability of development process, on the one hand, and equity and employment, on the other. How far is the decline in the importance of agriculture without corresponding increase in the share of industry, particularly manufacturing, and growing importance of the services sector represents a sustainable pattern of development? Is it a reflection and consequence of greater integration of Indian economy in the world economy as part of the globalisation process, on the one hand, and changing nature of the industrial, particularly manufacturing, sector where its linkages with agriculture and services, rather than its size as such, assumes greater importance? With the stagnant share of industrial sector in the economy and its declining employment potential, will the services sector expand fast enough to provide employment to increasing labour force? Will such an expansion be induced by growth in the industrial sector or will take place independently? These and other related issues arising out of the on-going changes in the structure of output and employment in the Indian economy are not only interesting from the an analytical academic viewpoint, but have strategic implications for the sustainability and equity of economic growth.

The Institute has been carryed out a research programme on the subject with the sponsorship and financial support from the Indian Council of Social Science Research (ICSSR). The three-year programme covers six major themes and within them a number of studies have been carried out as listed below:

Theme 1?? Growth and Structural Changes in Indian Economy

  1. Growth and Structural Changes in Output in India since Independence: A Study Report,??Surajit Mazumdar??click to download

Theme 2?? Employment Implications of Structural Changes

  1. Growth and Structure of Employment: Long-Term and Post-Reform Performance and the Emerging Challenge, T.S. Papola & Partha Pratim Sahu??click to download

Theme 3?? Growth and Structure of Industry??

  1. Growth and Structural Changes in Indian Industry: Organised Sector, T.P. Bhat
  2. Growth and Structural Changes in Indian Industry: Unorganised Sector, Ajit Jha
  3. Small and Large Industry Linkages, Jesim Pais & Partha Pratim Sahu
  4. Inter-Regional Disparities in Industrial Growth and Structure, T.S. Papola??click to download
  5. Structural Changes in Indian Private Corporate Sector,??K.V.K. Ranganathan & M.R. Murthy

Theme 4?? The Services Sector

  1. Growth and Structure of Services Sector in India, Jesim Pais

Theme 5?? Income Distribution, Demand-Supply Balance and Prices??
?? ?? ?? ?? ?? ?? ?? ?? (modified to mainly include issues of disparities and inequalities of various kinds)

  1. Disparities in Pattern of Consumption Expenditure, Satyaki Roy??click to download
  2. Changes in Factor Shares, Satyaki Roy
  3. Human Development: Structural and Changes across States, Satyaki Roy

Theme 6?? Trade

  1. Structural Changes in India???s Foreign Trade, T.P. Bhat??click to download
  2. Import Intensity of India???s Exports, Mahua Paul
  3. Role of States in Exports, Mahua Paul

A??two-day workshop??was organised during 7???8 July 2011 to discuss the findings of seven studies completed by them and scope and preliminary findings of some other studies. About 50 scholars participated in the workshop. The seven studies discussed in the workshop were revised and finalised incorporating the comments and suggestions received in the Workshop.

A??programme-end seminar??was organised in 20???21 April 2012 in which the findings of the remaining seven studies completed after the July 2011 workshop and also a paper synthesizing the findings of all 14 studies were presented and discussed.

  • Structural Changes in the Indian Economy: Emerging Patterns and Implications,??T.S. Papola,??click to download

Prof. T.S. Papola is the Principal Coordinator and Prof. M.R. Murthy is the co-coordinator of the programme.

Sustainable Development: Emerging Issues in India???s Mineral Sector
The project is funded by Planning Commission. A field study for the project has been initiated. Visits were made to a few selected mines in Jharkhand and Orissa where extensive discussions and interviews were held with the mining executives, local community representative and government officials. Further visits are planned to Goa and Karnataka in the coming months. Nilmadhab Mohanty is the Project Director.
Employment Challenges in North-Eastern States of India: Role and Potential of the Unorganised Manufacturing Sector
Based primarily on secondary data sources such as the NSS reports on unorganized manufacturing sector, this study analyses the critical issues of employment challenges and potential in eight north-eastern states of India. The study is supported by the V.V. Giri National Labour Institute, Noida. Partha Pratim Sahu is Principal Researcher.
Linkages between Large Enterprises and the Unorganised Sector: Review of Issues and Past Studies
The present study presents a detailed review of existing literature on systems of subcontracting in India and other countries. The review includes both theoretical as well as empirical studies based on primary and secondary data sources. The study also makes a critical review of government policies on different aspects of subcontracting linkages. The study was sponsored by the National Commission for Enterprises in the Unorganised Sector (NCEUS). Prof. T.S. Papola was the co-ordinator. Dr Partha Pratim Sahu and Dr Jesim Pais are the principal researchers.
Linkages between Large Enterprises and the Unorganised Sector: A Study of Subcontracting Relations based on Secondary Data
Based on various secondary data sources, this study provides empirical evidence on the pattern and magnitude of subcontracting in micro and small manufacturing enterprises, across different industry groups and analyses whether there are any sector specific features in functions and linkages. It illustrates types, nature and extent of linkages and their implications for the micro and small enterprises. In terms of select performance indicators, a comparative analysis of enterprises that are engaged in subcontracts and others that are not has been attempted to identify factors that work for or against long term relationships between the large and micro and small firms. Subcontracting as an instrument for technological upgradation and employment expansion in micro and small manufacturing enterprises has also been discussed. The study also discusses various difficulties associated with subcontracting system. The study was sponsored by the National Commission for Enterprises in the Unorganised Sector (NCEUS). Prof. T.S. Papola was the co-ordinator. Dr Partha Pratim Sahu and Dr Jesim Pais are the principal researchers.
The Employment Implications of Current Financial Crisis: Challenges, Threats and Coping Strategies in India
After the global slow-down in late 2008 there has been a growing concern over its impact on employment. The study, commissioned by the South Asian Network of Economic Research Institutes (SANEI), aims to analyse the employment impact of recent global slow-down, with special focus on small manufacturing (exporting and non-exporting) enterprises. Partha Pratim Sahu is Principal Researcher.
Quality in School Education: Accreditation Standards for MCD Schools for Quality School Governance
The Institute has taken up research project on ???Quality in School Education??? sponsored by Quality Council of India (QCI), Department of Industrial Promotion and Policy, Ministry of Commerce and Industry, Government of India. The terms of references of the study are:

  • Select of two schools from each boards namely CBSE, ICSE, IBO and Delhi Board;
  • Requirements of compliance status of the recognition/affiliation bodies;
  • Conducting a comparative study of the syllabus, curriculum and pedagogy in selected schools;
  • Study of student assessment/evaluation/examination by these affiliating bodies and then the actual operational status in the schools;
  • Study of the compliance status of the schools against the requirements of the accreditation standard and listing of good practices in each of the categories of school of different Boards and making comparative assessment.

As per the TORs, the final report has been submitted to the QCI. For the purpose of case study, two schools were selected from each of the four boards viz CBSE, ICSE, IBO and Delhi Board. A survey was conducted in these schools and, personal interview and discussions were held with the functionaries of different Boards (CBSE, ICSE, IBO and Delhi Govt. School), with the help of a structured questionnaire. Discussions were also held with the concerned officials of NCERT, SCERT and Principals of selected schools for the purpose of the study. The final report was submitted in March 2009 and findings of the study were appreciated by QCI. It is hoped that the study will provide useful information for improving Quality Education in Primary Schools. Shri D.N. Gupta is the principal co-ordinator.

e-Governance: IT Application for Land Survey and Settlement
The objective of the project was to prepare an approach paper and survey methodology through photogrammatry and IT application for better land management in order to provide a detailed overview of land information system (LIS). The following aspects were covered: land survey (through photogrammatry), digitization of maps, land database development, generation of ROR and requirement of hardware and software.

The report covered the key steps in the process of Photogrammatry-based survey, map generation, preparation of Records of Rights (ROR), GIS, and value added services. It provided the detailed methodology for land formation system for pilot project in Bihar having the following salient features: Integrated digital record of all land information of both rural and urban areas; automatic updating; transparency and accessibility: ensuring single point availability and multi-point accessibility through information kiosks, internet, e-Seva Centres, etc; GIS-based comprehensive land information: available in a multilayered GIS right from individual landholding up to the State level for rural and urban areas; operation by a single, dedicated agency to institutionalize the system and providing services to the citizens through a unified interface. The project undertaken by Shri D.N. Gupta was sponsored by Infrastructure Leasing & Financial Services Ltd. under the e-Governance programme.

Impact of Foreign Direct Investment on Selected Sectors of India: A Comparative Study with Selected Countries
The study made a comparative study of policies and procedures and actual inflows of FDI in select industries and a few countries in Asia and Latin America viz., China, Brazil, Mexico, Malaysia and Thailand. The study focussed upon information technology, transport equipment, other engineering industries, food processing sector and drugs & pharmaceuticals which offer a mix of export potential, technology intensity and employment generation and which have also accounted for a significant portion of FDI inflows into India in the new policy period.

The principal investigators of the study are: K.S. Chalapati Rao, K.V.K Ranganathan and M.R. Murthy. Final report of the study was submitted to the Office of the Economic Advisor, Department of Industrial Policy & Promotion, Ministry of Commerce and Industry in March 2007.

SME Clusters in India: Identifying Areas of Intervention for Inclusive Growth
The project comprised of a comprehensive study on SME clusters in India in view of integrating the promotion of clusters to the broader goals of ???inclusive growth???. The study critically reviews the different phases of policies undertaken by the government in reference to small scale sector and locates the relevance of cluster based approach beyond the traditional ???large/small??? dichotomy. The study includes field survey of four clusters related to footwear and garments and also two other clusters related to traditional and high-end products primarily to capture the production relations in a comparative framework. The footwear clusters studied were located at Kolkata and Agra and the garments producing clusters visited were at Tirupur and Delhi-NCR. Using the case study approach the project tried to capture also the differences in industrial dynamics in the case of ancillaries, industrial estates, techno-poles and traditional manufacturing clusters and propose policies that could help generate a course of industrialization targeted to the dual goals of employment and efficiency.

The project draws attention to the fact that national level policies and firm level parameters are both incompatible to a proper cluster development programme. It is necessary to devise meso-level interventions that can capture the specifics of the region and at the same time could indulge in cumulative generation of collective efficiency. Facilities and subsidies given to small firms at various levels should encourage clustering and cooperative competition and need not be focused to successful firms. Policies should aim at exposing the cluster to new challenges of competition such that linkages between firms do not get rigidly defined. At the same time some kind of regulation is required to encourage/discourage new start-ups such that easy entry could not generate a race to the bottom. In this connection proper execution of labour rights is not only required but needs to be promoted through the reward-punishment structure. Apart from basic physical infrastructures such as roads, water and power supply, public investments are required on human development and capability building. This requires developing of autonomous real service centres on the one hand and on the other the government should encourage financial transparency and disclosure such that complex issues related to SME finance becomes more tractable. In sum a process of regional planning should evolve primarily to take care of the issues specific to the region. This involves a political process and the voice of the cluster should be adequately represented in that process to appreciate their claims in the public good not as individuals or households but with a defined identity of a cluster.

The study was sponsored by the Socio-Economic Research Division of the Planning Commission. Prof. S.R. Hashim was the Project Director, Prof. M.R. Murthy and Dr. Satyaki Roy were the principal researchers. The final draft report of the study was submitted to the Planning Commission in March 2010.

Subcontracting Relations between Large Enterprises and the Unorganised Sector: Evidence from a Primary Survey
The existing secondary databases on subcontracting being inadequate and limited to very few characteristics, a field survey is undertaken to supplement the analysis based on secondary data. The study attempts to analyse the complete functioning of subcontracting system from the perspective of micro and small enterprises. The study analyses many important aspects of contractual relationships such as nature, type and duration of contract; status, location and number of buyer firms; mechanisms of price fixation and modes of payments; the benefits and constraints for the small firms working under contract and so on. The study also briefly discusses the issue of conditions of work in micro and small enterprises. The study was sponsored by the National Commission for Enterprises in the Unorganised Sector (NCEUS). Prof. T.S. Papola was the co-ordinator. Dr Partha Pratim Sahu and Dr Jesim Pais are the principal researchers.

Aid Salary Discrepancies and Development Workers Performance
The project is a part of a bigger study titled ???Are Development Discrepancies Undermining Performance??? (ADDUP) covering six countries namely; China, Uganda, Papua New Guinea, Solomon Islands and Malawi in collaboration with Massey University, New Zealand and coordinated by Prof. Stuart C. Carr of the Massey University???s Poverty Research Group in New Zealand.

This is an interdisciplinary project which examines a range of issues in development work, from pay and conditions to relationships between expatriate and local staff. The main objective of the study is to assess how pay diversity affects people at work in aid projects, development sectors in international organisations, international NGOs, multinational corporations and academic institutions. It attempts to compare international and local compensation systems and explore the extent and impact of pay diversity and put forward various ways to improve the system that would be beneficial for everyone. ADDUP???s purpose is to make a constructive contribution towards understanding and managing pay diversity in aid and other capacity development work. The approach uses a stakeholder model???seeking participation from important, key organisations to help complete a meaningful and helpful project on an important issue for employers and employees.

As a part of this study, ISID conducted a survey of about 240 respondents from international organisations, international NGOs, multinational corporations and academic institutions. Preliminary findings of the survey were discussed in a one-day workshop on June 02, 2009 at the Institute. Key stakeholders; representatives of UN and other international organisations, embassies and international NGOs, and subject matter experts participated in the workshop. Prof. T.S. Papola was the project Director and Dr Jesim Pais & Dr Partha Pratim Sahu are the principal researchers.

Import Intensity of India???s Exports in Liberalized Trade Policy Regime
There are divergent views on effects of trade liberalization on economic growth and employment generation. However, this is not the case with export expansion and improvement in competitiveness. The impact of trade liberalization is closely related to initial level of economic openness. If initial level of economic openness is more, growth of output, exports, employment and competitiveness will be more positive. But it may not be prudent to attribute higher growth to trade liberalization alone. Available studies on various countries are not conclusive on the effects of trade liberalization on employment generation. The objective of the study is to assess empirically the impact of trade liberalization on output, exports and employment generation and competitiveness in India???s manufacturing sector.

The results of the study reveal that import intensity of exports in manufacturing sector has increased and so is the competitiveness. Liberalization has led to expansion in output and employment, particularly in labour-intensive and export-oriented industries. Many of the capital-intensive industries also witnessed rise in output and competitiveness. Liberalization policies have thus brought about a favourable impact on Indian industries. But trade reforms must be implemented and sequenced suitably, as a part of broader effective growth strategy to enhance economic growth in India.

The principal investigators of the study are: T.P. Bhat, Atulan Guha, Mahua Paul and Partha Pratim Sahu. Final report of the study was submitted to the Department of Commerce, Ministry of Commerce and Industry in March 2007.

Export-orientation of Foreign Manufacturing Affiliates in India
Foreign firm???s contribution to India???s exports continued to be marginal whereas their export contribution has grown significantly in other developing countries like China, Malaysia, Singapore, Chile, Hungary, Poland and Czech Republic. For example, foreign affiliates contributed just about 4.5 per cent total exports in 1990 in the case of India. What explains this poor export performance of FDI in Indian case?

The present research project has estimated the export intensity and shares of foreign firms for 17 Indian industries over 1991???2005 and analyzed factors that determine export-orientation of foreign manufacturing affiliates in India to explain foreign firm???s least biases towards export activities.

The empirical result also suggests that the export-orientation of foreign firms has changed positively following the adoption of an outward looking regime since 1991. The new policy regime seems to have stimulated exports activities of foreign affiliates by producing an export-friendly business atmosphere. Nevertheless, the Indian government needs to be both proactive and cautious so far as the nature and composition of exports, the propensity for which is keenly opted for by the foreign affiliates. The overwhelming emphasis upon exporting mineral products following preliminary processing is an ominous sign that potentially reduces the beneficial impacts from FDI to the host country.

It has been observed that foreign affiliates in India have significantly lower export intensities in R&D- and advertising-intensive industries. The host country policies may target foreign firms operating in these industries so as to encourage them to adopt exports by providing supportive incentives.

The study was initiated internally by Jaya Prakash Pradhan and completed in August 2006.

Conditions of Work and Promotion of Livelihood in the Unorganised Sector
The study envisages preparation of papers on the following aspects of work and employment in the unorganised sector.

  1. Magnitude and structure of employment in different categories; self-employed and wage labour, distribution by industry and occupation, rural-urban locations, gender and social categories such as castes and so on.
  2. Working conditions of wage labourers in the unorganised sector in terms of physical environment, conditions of employment such as hours of work and holidays, wages, social security, grievance settlement procedure, legislative and institutional arrangement for ensuring minimum conditions of work in the unorganised sector.
  3. Levels and sources of livelihood of self-employed workers, access to inputs, credit and markets, programmes for promotion of livelihoods and their effectiveness.

Background papers, based on secondary material and past studies, were prepared and submitted to National Commission for Enterprises in the Unorganised Sector (NCEUS) and have been used as major input in the final report of the Commission. T.S. Papola was the project Director and Jesim Pais, Partha Pratim Sahu and Rathi Kant Kumbher are the principal researchers.

Labour Regulation in Indian Industry: A Study of its Impact on Growth, Investment and Employment
The project consists of studies, consultations, discussion and publications with a view to contributing to the on-going debate and policy making on the subject, by especially examining the impact of existing labour regulation on growth, investment, employment and labour standards in Indian industry. The main aspects of the project are as follows:

  1. Labour Policy and Legal Framework in India: A Review; C P Thakur
  2. Labour Regulation in Small Enterprises: Coverage and Impact; V N Prasad
  3. Labour Regulation and Its Impact: A Review of Studies and Documents; T S Papola, G S Mehta & Vinoj Abraham
  4. Effectiveness of Labour Regulations in Indian Industry; Jesim Pais
  5. Labour Regulation, Industrial Growth and Employment: A Study of Recent Trends in Andhra Pradesh; D N Reddy
  6. Impact of Labour Regulation on Growth, Investment and Employment: A Study of Maharashtra; K R Shyam Sundar
  7. Labour Regulation and Industrial Development in Uttar Pradesh: Some Recent Trends; Alakh N Sharma & V Kalpana
  8. Labour Regulation and Industrial Development in West Bengal; Debdas Banerjee
  9. Labour Regulation, Labour Flexibility and Labour Reforms in Europe: Some Perspectives with Possible Lessons for India; A V Jose, Pietro Garibaldi and K R Shyam Sunder
  10. Labour Regulation in Indian Industry: Towards a Rational and Equitable Framework; T S Papola, Jesim Pais and Partha Pratim Sahu

Ten detailed research papers have been prepared under the programme and integrated into a report incorporating a framework for a fair and efficient labour regulation in India conducive to growth and employment generation and observance of minimum labour standards in Indian industry.

The study is undertaken in collaboration with the International Institute for Labour Studies (IILS), Geneva. The European Union (EU) has sponsored this research project. T.S. Papola, ISID and A.V Jose, IILS are the project Directors.

Defining the Role of Government in Transnationlization Efforts of Indian SMEs: A Case Study of Indian Pharmaceutical Industry
Over the decades, small and medium enterprises (SMEs) have emerged as a strong player in the Indian pharmaceutical industry, although they are now facing increasing national and international competition. Enlarging market focus and improving firm-specific competitive capabilities through transnationalization, thus, turn out to be critical strategies for Indian pharmaceutical SMEs. The present study, commissioned by Department of Scientific and Industrial Research, Ministry of Science and Technology, critically discussed the role of government polices to promote internationalization efforts by small pharmaceutical firms. It also analyzed their internationalization growth in terms of export performance and outward FDI as compared to large firms during the period of economic reforms and undertook empirical analysis of the various determinants of their internationalization process.

The pharmaceutical industry in India is found to be largely dominated by small and medium-sized firms. The small firms are operating at a disadvantageous position as compared to their large counterparts. The research shows that in-house R&D capability, import of capital goods and machineries, inter alia, are crucial determinants of export activities by SMEs. The case study of select pharmaceutical SMEs suggests that individual firms undertake different strategies such as product innovation, quality improvement, collaborative R&D with government and agencies to successfully operate in the international market. Pharmaceutical SMEs are also undertaking outward-FDI to improve and enhance their overall competitiveness in the global market.

The existing government polices to promote export and other forms of internationalization strategies are found to be grossly inadequate. A large number of pharmaceutical SMEs, are either not aware of different government schemes or are not getting any substantial benefits from such initiatives. The present study identifies specific intervention areas, such as availability of low cost finance for technological up-gradation and quality improvement, information on overseas markets, improvement in crucial physical and R&D infrastructure, promotion of pharmaceutical SMEs clusters, special and discriminatory incentives schemes for pharmaceutical exporting SMEs and so on, which need urgent policy attention to facilitate Indian pharmaceutical SMEs to stand on their own in the present competitive business environment.

Final report of the study was submitted to Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, Government of India. Jaya Prakash Pradhan and Partha Pratim Sahu are the principal researchers.

High-tech Industries, Employment, and Global Competitiveness
High-tech, knowledge-based industries like information technology, biotechnology, and pharmaceuticals have played an important role in the transition of the Indian and Chinese economies ??? the two largest and fastest developing economies in the world today. This process has been characteristically marked by the expanding reach of multinational enterprises, flows of foreign direct investment, unprecedented advancement of information and communication technologies (ICT) and knowledge-based industries, and infusion of ICT across the entire spectrum of industries and activities.

This interdisciplinary book offers an in-depth understanding of the behaviour of firms in these industries, analysing the strategies they adopt in a globally competitive environment, the role they have played in ushering in the growth revolution in China and India, and the contribution they have made to the nature and growth of employment. Findings are based mostly on data collected through fieldwork and surveys. The book also discusses the emerging nature of scientific and technological developments like nanotechnology, novel materials, spintronics, and quantum computers, suggesting that in the future, knowledge and technology will become the real sources of wealth for nations.

This book will be of particular interest to those in the fields of economics, international business, and industrial and technological development management.

The book is edited by Prof. S.R. Hashim, ISID & Vice-President, Forum for Global Knowledge Sharing and Prof. N.S. Siddharthan, Honorary Professor, Madras School of Economics and Member-Secretary, Forum for Global Knowledge Sharing.

It is published by Routlege India, Taylor and Francis, Group, New Delhi.

  • India and China in WTO: Building Complementarities and Competitiveness in the External Trade Sector, project report submitted to the Planning Commission, Government of India, 2005.
  • Employment Implications of Growing Exports: With special focus on Services Exports, the study report was submitted to the Ministry of Commerce & Industry, 2005.
  • Two sub-Chapters: ‘Economic History of Tobacco Production in India’ and ‘Policy Interventions: Supply-side Actions’ for ‘Collaborative Approaches for Comprehensive Tobacco Control in India’ project for the Health Related Information Dissemination Amongst Youth (HRIDAY). This is a sponsored project of the Ministry of Health & Family Welfare, Government of India and Centers for Disease Control & Prevention, USA , 2004. Final report of project has come out as a publication Report on Tobacco Control in India’, K. Srinath Reddy, and Prakash C Gupta (eds.), Ministry of Health & Family Welfare, 2004.
  • Review of Existing Policies and Legislation for Micro and Small Enterprises (MSEs) in Uttar Pradesh, 2004. The project was sponsored by the ILO.
  • Study for Working out the Details of Steel Demand in Oil, Gas, Water and Slurry Transmission Segments, 2004. The study was sponsored by the Steel Authority of India Ltd.
  • Livelihood Strategies for Sikkim, 2003. The project report was submitted to the UNDP.
  • Savings and Capital Formation of the Indian Private Corporate Sector: An Attempt at Explaining Recent Trends, project report submitted to the Union Ministry of Finance, 2003.
  • Savings and Investment of the Indian Private Corporate Sector during the Nineties, sponsored by the Union Ministry of Finance, 2002.
  • India’s External Trade during the ‘Nineties: Some Aspects – An Analysis of Customs House and Company Data, a project report sponsored by the Planning Commission, November 2002.
  • Beyond the Washington Consensus – Governance and the Public Domain in Constrasting Economies: The Cases of India and Canada, a joint project of the Robarts Centre for Canadian Studies, York University, Canada; Institute for Studies in Industrial Development and Centre for Research in Rural and Industrial Development (CRRID), 2001.
  • Global Capital Flows and the Indian Stock Market, a project sponsored by the Indo-Dutch Programme on Alternatives in Development (IDPAD), 1999.
  • Privatization in India – Social Effects and Restructuring, country study sponsored by the International Labour Organisation (ILO), 2000.
  • Design of Social Safety Net for the State of Madhya Pradesh, sponsored by Asian Development Bank (ADB), 2000.
  • Madhya Pradesh – Implementation of Public Sector Restructuring Programme: A Poverty Impact Assessment Study, sponsored by the Asian Development Bank (ADB), 1998.
  • Foreign Investment Approvals and Implementation Status: A Review (August 1991- December 1994), sponsored by the Union Ministry of Finance, 1995.
  • Foreign Investment Approvals: An Analysis (August 1991 to July 1993), sponsored by the Union Ministry of Finance, 1994.
  • ISID Development Indices: Monitoring Stock Exchange Trends, sponsored by the Union Ministry of Finance, 1994.
  • India’s Trade Policy and Export Performance of Industry, sponsored by the Indo-Dutch Programme on Alternatives in Development (IDPAD), 1994.
  • Economic Liberalisation and Indian Agriculture, sponsored by the Food and Agriculture Organisation (FAO), 1994.
  • Directory of Statistics of International Investment & Production in India, prepared for the United Nations Centre on Transnational Corporations, 1993.
  • Small and Medium-sized Transnational Corporations, TCMD Division of United Nations Department of Economic and Social Development, 1992.
  • Political Economy of India, 1992.
  • Directory of Joint Stock Companies in India, 1990: A Review, a report submitted to the Department of Company Affairs, 1992.
  • India’s Imports and Exports: Some Insights (An Analysis of Daily Trade Register Data), a reported submitted to the Union Ministry of Finance, 1991.
  • Exchange Rates, Trade Policy and Tariff Structure, a reported submitted to the Union Ministry of Finance, 1991.
  • Directory of Statistics of International Investment and Production in India, prepared for the United Nations Centre on Transnational Corporations (UNCTC), 1990.
  • Patterns in Indian Agricultural Development: A District-Level Study, sponsored by the Planning commission, 1989.
  • Public and Private Corporate Sectors in India: A Study in Characteristics and Trends, project report submitted to the Standing Conference of Public Enterprises (SCOPE), New Delhi, 1988.
  • Joint Sector Enterprises in India: Rationale, Growth and Performance, 1995.
  • Employment Generation and Rural Labour.
  • Patterns of Rural Industrialisation and Non-farm Employment in India.
  • Rural Labour Markets and Incidence of Poverty.
  • Export Promotion and Indian Joint Ventures, 1990.
  • Small Scale Sector and Big Business, a study prepared under the ICSSR Research Programme, Regulation of Private Corporate Sector In India, 1984.
  • Functioning of the Industrial Licensing System, a study prepared under the ICCSR Research Programme, Regulation of Private Corporate Sector In India, 1983.
  • Ownership and Control Structure of the Indian Press, Report submitted to the Second Press Commission, 1981.