ABSTRACT
This study also present both aggregate (India) and disaggregated analysis (state and industries). We find that though the growth performance of OMFG during the said period was impressive, TFPG explained just about 14 percent of growth of the OMFG sector. Following Krugman (1994), this seems to be the result of perspiration rather than inspiration. The employment growth rate ranged from -2.3 to 6.9 pcpa across the states. The range for TFPG across the states was -0.02 to 2.49 pcpa, and for the real gross output from 7.9 to 20.1 pcpa. The correlation between growth of OMFG and employment is just about 0.29 pcpa.
