Hub and Spoke Model of Enterprise Growth in India: Exploitative or Benign?

Book ID: ISED-304

Book Type: Soft Copy

Description

Industrial policy, in India, has traditionally been understood in terms of its twin objectives, i.e., employment promotion and balanced regional development. These two objectives are mutually reinforcing. It is important that, while public policy is implemented in terms of programs, a balance between the two need to be ensured. During the Liberalization era, this traditional objective has undergone major changes, as ‘collective efficiency’ became a central part of development policy. Today, while the State governments compete each other on investment promotion strategies, it is natural that ‘regional development’ strategies are traded off against ‘collective efficiency’ strategies. This has practically happened in many States. This research is an attempt to analyze the changes that are underway in Tamil Nadu, and its impact on overall objectives of development policy. It also gives indications on the way forward. Keywords: Agglomeration analysis, spatial density analysis, enterprise hubs, magnets of manufacturing