State policy industrial structure and industrialization

Abstract

This thesis examines some problems of industrialisation and industrial growth in the Indian State of Kerala. newline newlineKerala has attracted international attention for its remarkable development achievements, particularly in the fields of land reform, health, and universal school education. The diversification of the economy into non-agricultural activities began in Kerala from the middle of the 19th century, and investment in modern industries, from the second half of the 1930s. After passing through long periods of slow growth and stagnation in domestic income from 1960, the economy of Kerala had a revival in growth of domestic income and per capita consumption expenditure from the late 1980s. newlineNevertheless, for the many favourable factors for industrialization that it enjoyed, industrialization in Kerala remains far from commensurate with the socio-economic achievements of the State. newline newlineThis thesis addresses four specific issues. First, it analyses features of industrial backwardness of Kerala with respect to the size, structure and growth of the industrial sector. Secondly, it examines industrial policies and investment behaviour in industry in modern Kerala in order to identify the factors that shaped industrial structure in the State. Thirdly, the thesis discusses factors that have slowed down industrial growth in Kerala. Fourthly, the thesis examines in particular the question of whether labour problems have been the cause of Kerala s industrial backwardness. newline newlineThe important findings of the thesis are the following. First, Kerala s industrial sector is small and relatively undiversified. Secondly, industrial policies and investment behaviour in industry in Kerala from the 1930s played a vital part in shaping industrial structure in Kerala. These policies include the decision of the Travancore Government of the 1930s to attract investments in large-scale industries by offering hydro-electricity at cheap rates to the industrialists. They also include the general encouragement in Kerala in the post-1950 period to pow