State Business Relations and Performance of Manufacturing Sector in Andhra Pradesh – A Case Study

Abstract

In this paper, we make an attempt to enquire into the politics of state-business relations, how it has affected industrial development in general, and expansion of the manufacturing sector in the State of Andhra Pradesh (AP) in particular. In AP, SBRs have evolved gradually under different political regimes - from 'indifferent' SBRs during the initial decades passing through critical junctures in the form of 'active' and 'proactive' phases and finally reaching their zenith during Chandrababu Naidu’s regime and continuing in the Congress regime. The SBRs in AP are seen evolving through different political regimes, and we have sought to capture their impact on the performance of manufacturing sector, based on both qualitative and quantitative sources. Examination of the secondary data reveals the dominance of registered manufacturing in AP’s total manufacturing output. Firm level perceptions reveal that business associations play a major role in the dissemination of information, rather than in lobbying the government as might be the case in other states. Small firms are at a disadvantage compared to large and medium firms.

Citation

Discussion Paper Series, Research Programme Consortium for Improving Institutions for Pro-Poor Growth, Manchester, UK, No. 31, 52 pp.

State Business Relations and Performance of Manufacturing Sector in Andhra Pradesh – A Case Study

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