Protection, Growth and Competitiveness in the Indian Capital Goods Industry

• Completion date जनवरी., 1992
• Sponsor RBIC
• Project leader Sudipto Mundle
• Other faculty H. Mukhopadhyay
• Focus

  This paper first measures the dynamic benefits of protection in the form of extra growth due to import substitution and then demonstrates that, despite the higher scale of production achieved on account of extra growth, the capital goods industry has failed to become internationally competitive. The paper also argues that conventional efficiency measures, like the domestic resource cost are inappropriate for analysing competitiveness and in the process, suggests an alternative measure.