ABSTRACT

This concluding chapter summarises the main findings and presents the policy suggestions. The key to step up the use of specific production factors is crucially linked to optimising the intersectoral linkages within the economy. The increasing dependence on imported intermediates must be addressed through strategic interventions. India must develop native tech-manufacturing capabilities through indigenous innovations. The expansion of domestic manufacturing is the way forward to create more jobs which are also spread out into the activity spectrum of the economy. The polarised distributional characteristics of organised and unorganised segments show that a uniform policy will not be as effective. While achieving competitiveness through the use of cross-cutting technology should be the mandate for growth in organised manufacturing which has a stronger representation of the capital-intensive industries and a notably higher level of capital endowments; the unorganised sector faces the challenge of expanding its predominantly labour-intensive activities. The findings on unorganised manufacturing suggest the need to infuse greater capital which will also have to be supplemented with a more adaptive labour therein to avoid the adverse impact on specific worker categories. It is foremost to recognise that the policy goals for organised and unorganised segments have to be indeed different.