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State-Business Relations in Indian States

State-Business Relations in Indian States. Siddhartha Mitra Director (Research). Outline. Rationale for the study Measurement of SBRs: methodology Conclusions: Results from analysis of national and state level trends . Rationale .

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State-Business Relations in Indian States

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  1. State-Business Relations in Indian States Siddhartha Mitra Director (Research)

  2. Outline • Rationale for the study • Measurement of SBRs: methodology • Conclusions: Results from analysis of national and state level trends

  3. Rationale • Recent research: identifies effective relations between states and business as an important condition for sustaining economic development • experience of East Asian countries • Measurement and analysis of such effectiveness should precede efforts to foster such relations • This represents the first effort to systematically characterise SBRs across sub-national units within a country without resorting to subjective surveys.

  4. Measurement of SBRs: Methodology • Evaluation of four subcomponents • how private sector is organised vis-à-vis the public sector; • public sector vis-à-vis the private sector; • the practice and institutionalisation of SBRs; • the avoidance of harmful collusive behaviour between the two sectors • Secondary and primary information data collected on these components • Average of sub-indices relating to above components: overall SBR index

  5. Conclusions • State-business relationships have improved over time for all states except Bihar. • Variations across time and states in SBR outcomes: potential for Indian states to learn from each other, given similarities in political and institutional set ups • Consistently good performers in ranking: Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu and Maharashtra • Consistently poor performers in ranking: Uttar Pradesh and Assam • Major improvements in ranking over time: Haryana, Punjab and Orissa

  6. Conclusions • Major deterioration in ranking over time: West Bengal and Madhya Pradesh • The positive correlation between the SBR measure and economic growth indicates the importance of SBR for economic growth in the Indian context. • There is a need for deeper study to estimate the impact of SBR on economic performance after controlling for other determinants of growth

  7. THANK YOU

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