Jammu and Kashmir (J&K) and Himachal Pradesh (HP) are the two northern states of the Indian union. The two neighbouring states are mountainous and backward as compared to the rest of the country. Of the two, J&K has more natural resources and population. On the contrary, HP, over time, has demonstrated higher outcomes in terms of basic indicators, gross state domestic product (GSDP) and economic growth. This article examines these two economies and attempts to compare them on the basis of their respective efficiencies in industrial production. Although data on GSDP show that HP has grown over time and has surpassed that of J&K in 2017–2018, technical efficiencies of the two regions, as drawn from Annual Survey of Industries (2017), are low and converging. Stochastic frontier results demonstrate that industrialisation in both regions is labour-intensive. Tobit regression results point to low contribution of inputs towards technical efficiency. Also, minimal use of communication and technology, low profits and weak policies contribute negatively in the direction of the technical efficiency of the firms in the two regions. The results specifically imply that in the region of J&K, government support and interventions are needed to address both endogenous and exogenous factors contributing to firms’ inefficiencies.

No abstract

The process of research and development (R&D) is characterised by improvisation, improvement and innovation based on information, knowledge and experimentation. It is the key to modern industrial development. Theoretically, firms are supposed to invest in R&D in order to enhance their existing offering and stay in business, given the competitive globalised market. The Indian economy is characterised as one of the growing global economies. Industrialisation process in India is dominated by the micro, small and medium enterprises (MSMEs). A low level of operation keeps these firms on a small budget, thus making the sector non-conducive in conducting firm-specific R&D. The current article is an empirical elucidation of the MSMEs’ industrialisation process in light of industry-specific R&D. The study is based on the Annual Survey of Industries data, analysing the national-level industrialisation process for 3 years from 2016 through 2018. The article finds that the overall MSME sector-specific R&D atmosphere in the country is not satisfactory. There is no correlation and symmetry between the level of industrialisation across states, average output and the R&D process. The findings of the article recommend a change in the industrial policy with a focus on the growth and development of industry-specific R&D.

No abstract

The standard method of poverty estimation uses unadjusted per capita income or expenditure to calculate population below the poverty line. However, recent empirical advancements have validated this method to be essentially flawed in nature. It does not take into consideration nor allows for household composition and economies of scale. Empirical investigations have confirmed the facts that the measures of poverty and inequality are sensitive to various choices of equivalence scales. Therefore, standard measures provide mostly overestimated poverty and inequality estimates. Further, poverty measurement across groups or overtime is sensitive to different poverty lines and measures. Any alteration in these can reverse the ranking. The current research attempts to test adult equivalence and scale economies in Jammu and Kashmir region to validate whether poverty estimates are sensitive to these scales or not. It also employs stochastic dominance technique to check whether poverty reduction is robust through time over a wide range of poverty lines and measures. The paper does so by employing three waves of monthly consumption expenditure rounds conducted by National Sample Survey Organization. For sensitivity analysis, the paper estimates FGT, Gini and Atkinson indices. Despite being industrially backward and politically fragile, J&K has shown better economic indicators than most other Indian states. The findings of the current study validate lower poverty in the region and at the same time discover a growth in inequality over time. While a mixed result is derived for adult equivalence, the economies of scale highlight the fact that standard measures are overstated and welfare rank reversal ensues when household size and gender of household is tested for. Further, stochastic dominance results show that poverty reduction is only robust during 61st and 66th round, and not during 66th and 68th rounds.