Investment trends in post-reforms India

Ulhas Joglekar uvj at vsnl.com
Sat Aug 25 05:21:29 PDT 2001


From: Lawrence <lawrence at krubner.com> To: <lbo-talk at lists.panix.com


> This is very interesting, but why is the output ratio rising after the
> reforms? Is it because the reforms were badly/inadequately done, or
because
> the reforms are actually worse than what preceded them?

The liberalisation has accelerated the process of concentration and centralisation of capital. Economies of scale, larger plant capacities with larger market size, better technology, mergers and acquisitions, plant closures and redundancies, difficulties faced by small and medium sized businesses due to competition etc. have lead to the higher capital intensities.

Ulhas



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