Indian Journal of Regional Science
Year : 2018, Volume : 50, Issue : 1
First page : ( 1) Last page : ( 16)
Print ISSN : 0046-9017. Online ISSN : 2456-6519.

Impact of government initiatives on location of industries in India

Kaur Puneet*, Kaur Kuldip**

*Senior Research Scholar, Punjab School of Economics, Guru Nanak Dev University, Amritsar. E-mail: pun10@rediffmail.com

**Professor and Head, Punjab School of Economics, Guru Nanak Dev University, Amritsar

Online published on 9 October, 2018.

Abstract

Since the planning era, initiatives have been taken to influence frm's location decisions by devising incentive policies, by both the Central and State governments. The initiatives in the form of incentives, concessions and subsidies encourage investment in the lagging states to enable the industries to become more competitive. Serious regional imbalances resulted in the development, despite balanced regional development being endorsed as one of the principal objectives of economic planning. The objective of this paper is to examine the impact of initiatives taken by the Central and State governments on location of industries in 15 major states during the period 1991–92 to 2009–10. The incentives granted under different plans and programmes contributed to the industrial development of lagging states such as Rajasthan, Assam and Kerala along with industrially affluent states such as Karnataka, Haryana, Tamil Nadu and Gujarat. There is a need of reviewing investment incentives periodically to determine their relevance and effectiveness in attaining the desired objectives.

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