A comparative study of inter-regional and intra-industry disparities

Abstract This paper investigates the inter-regional intra-industry disparity within selected Indian manufacturing industries and industrial states. The study uses three measures—the Output-Capital Ratio, the Capital-Labor Ratio, and the Output-Labor Ratio—to critically evaluate the level of disparity in average efficiency of labor and capital, as well as capital intensity. Additionally, the paper compares the rate of disparity of per capita income between six major industrial states. The study finds that underutilization of capacity is driven by an unequal distribution of high-skilled labor supply and upgraded technologies. To address these disparities, the paper suggests that policymakers campaign for labor training and technology promotion schemes throughout all regions of India. By doing so, the study argues, the country can reduce regional inequality and improve economic outcomes for all.