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Completed Projects

A number of sponsored research projects have been completed by the ISID. The sponsors of projects include Ministry of Finance and Planning Commission of the GOI, United Nations Center on Transnational Corporations (now part of UNCTAD), European Commission (EU), Asian Development Bank (ADB), International Labour Organisation (ILO), Food and Agriculture Organisation (FAO), Indo-Dutch Programme on Alternatives in Development (IDPAD) and the National Commission on Rural Labour. Besides, individual members of the faculty pursue their own research interests.

  • Report on India’s Pharmaceutical Pricing Policy (NPPP), 1979–2013

The study deals with a comprehensive evaluation of the National Pharmaceutical Pricing Policy (NPPP), 2012 and the Drugs Price Control Order (DPCO), 2013 besides the past DPCO 1979–2013 and examines implications of the policy both in terms of access to medicines and industrial development. The key findings of the study are: i) One can expect the outcomes of prices of medicines to remain market-led (status quo) since the Drug Price Control Order (DPCO) of 2013 utilizes the formula of market determined pricing to undertake price regulation rather than price competition. Market will continue to be led by large firms while small and medium scale firms will continue to be at a disadvantage; ii) The pharmaceutical industry is characterised by high levels of market concentration. Out of 1468 sub-therapeutic categories of medicines, 73 per cent sub-therapeutic (1072) categories exhibited high concentration as measured by the Herfindahl–Hirschman Index; iii) The coverage of drugs under the DPCO 2013 is limited to only about 17 per cent of the drugs being prescribed and promoted at present in the country; iv) Analysis of the impact of the DPCO 2013 on the prices for marketing and sales leaders and those who have a share of 1 per cent in the market indicates that the price impact of the implementation of DPCO 2013 is marginal for the consumers buying drugs from the retail market; v) The absolute decrease in sales because of price control is estimated at less than 2 per cent (Rs. 1,300 crore) of the total market turnover. Therefore, not much relief can be expected to flow to the consumers; vi) The DPCO 2013, through its shortcomings, also provides pharmaceutical companies with several escape routes from price control. It not only permits the presence of a substantial inessential/irrational/unsafe medicines to be marketed, but also encourages its growth by allowing a 10 per cent increase in prices each year; vii) DPCO 2013 does not address the challenges of achieving cost-competitiveness and indigenous development of the bulk drug industry; and, viii) therefore, the choice of the drug price control mechanism must be made keeping in view the prevailing market situation and the need to safeguard indigenous industrial development and the scope to develop competitive public procurement by states.

The findings of the study were extensively used by the National Pharmaceutical Pricing Authority (NPPA), Department of Pharmaceuticals, Ministry of Health and Family Welfare, Government of India and civil society organisations while defending their case in a PIL filled in the Hon`ble Supreme Court of India on drug prices. The study was jointly undertaken by ISID and PHFI and presented in a Two-day National Conference organised by the Institute during March 06–07, 2014. Prof. Dinesh Abrol of ISID and Dr Shaktivel Selvaraj, Ms Malini Aisola and Ms Aashna Mehta of PHFI are the principal researchers.

  • Estimating Impact of Increase in Tax on Prices of Tobacco Products in India: An Empirical Analysis

Tobacco consumption is responsible for 9 to 10 per cent of global mortality and considered as one of the major risk factors for non-communicable diseases (NCD). The World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC) held in March 2003 outlined that tobacco taxation is the most cost-effective intervention to reduce consumption. The FCTC stipulated that all tobacco products be taxed at a tax incidence of 70 per cent. A tax-driven price hike of tobacco products is expected to reduce tobacco consumption, more particularly among the current users while preventing the initiation among new users. Tobacco taxes in India, however, have not resulted in reducing tobacco consumption at the population level. Given this fact, the study examines the effectiveness of tobacco taxes in India, and, makes several observations, including on the real value of output and sale of tobacco (registered and unregistered) manufacturing industry, and affordability of various tobacco products both at the national and state levels, dominance of firms on tobacco control policy.

In order to use taxation as an effective instrument of tobacco control in India, the study recommends: (i) removal of all differential in excise duties and VAT rates on cigarettes to make the rates high and uniform across filtered cigarette and sizes, (ii) excise duty on tobacco products must be levied based on per gram of tobacco content on its products, (iii) equal percentage of tax burden across segments/lengths and brands of cigarettes so as to reduce demand substitution between them, (iv) not only the tax on beedies should be increased manifold, but the distinction between handmade and machine made beedies for the purpose of levying excise duty be also abolished, (v) increase in tax burden (through rise in excise and VAT rate) to 70 per cent of retail price of tobacco products as against the current rates of 20 per cent in the case of beedies and 55–59 per cent on cigarettes, (vi) broadening of tobacco tax net by bringing informal players into the tax net. Simplify tobacco tax structure and improve tax administration to impose and collect excise & VAT from informal manufacturers, and finally, (vii) to move towards the long overdue Goods and Services Tax (GST) regime. While doing so, the government could impose the maximum duty (Central GST and State GST) on tobacco products in the 3-tier structure as envisaged.

The study was jointly undertaken by ISID and PHFI and WHO provided the financial support. A draft report was submitted to WHO in March 2014. Dr Shailander Kumar Hooda of ISID and Dr Sarit Kumar Rout, Mr Pritam Dutta and Dr Swati Srivastava of PHFI are the principal researchers.

  • Ports as Infrastructure, Ports as Cities: The Indian Port System from Colonialism to Globalization

Sea-ports represent a complex interplay of physical, spatial and socio-economic phenomena and are invariably the centres where different kinds of interactions and dependencies in the supra-national economy are worked out, be it under colonialism or under the modern phase of ‘globalisation.’

The objective of the study is: i) to chisel the concepts and theoretical frameworks relevant to the historical and spatial analysis of sea-ports, port systems and port-cities. This is necessary because most of the concepts en vogue have acquired varying theoretical meanings in social science and port planning literature; ii) to trace the evolution of the Indian sea-port system from the colonial period, when the introverted economy of the country was reoriented and focused on sea-ports, to the present day, when India is being increasingly drawn into the world economy; iii) to analyse the Indian port-cities within the national systems of ports and cities and thus outline the linkages between the port and city functions; and, iv) to underpin the various factors that have historically influenced the performance, management and future prospects of Indian sea-ports. The project was sanctioned by the Indian Council of Social Science Research (ICSSR) in November 2012 and it is to be completed by November 2013. Preparation of the final report is under progress and ICSSR granted an extension of time up to March 2014 owing to the vast range and scope of the study. Prof. Atiya Habeeb Kidwai, formerly Professor at JNU is the Project Director.

  • Imperialism and the New World Order: Departures and Continuities

The study includes various aspects of the current phase of neoliberal globalisation and the way it resembles the idea of imperialism. The paper, as part of the larger study, is primarily looking into how theories of imperialism changed over time and the socio-historical perspectives that caused conceptual departures. Starting from liberal theories to that of Marxian tradition the paper underlines the historically contingent nature of the idea of imperialism. It informs the theoretical continuities and departures in the notion of imperialism, especially in the context of the present state of deterritorialized and decentered capitalism. The asymmetries and division of world have become far more complex than what it was in the early twentieth century and the study aims to capture the emerging complexities of global hierarchy. The study is part of the ICSSR research programme ‘A Multi-Dimensional Study of Imperial Order and its Journey towards Neoliberal Imperialism under Globalisation’ and is being undertaken by Dr Satyaki Roy; the draft report was completed in March 2014.

  • Regulating FDI in Multi-brand Retail Trade (MBRT): Some Key Concerns

After a long and winding process spanning nearly one and a half decades starting from permitting 100 per cent FDI in Cash & Carry Wholesale Trade through the approval route in 1997, the government finally allowed FDI up to 51 per cent in multi-brand retail trade (MBRT) in September 2012. The opening up has, however, not been smooth because of fierce opposition from various quarters—not just from kirana stores which are perceived to be the ones that would be affected the most. India, therefore, allowed FDI in multi-brand retail trade with certain safeguards, the most important ones being: (i) minimum inflow to be $100 mn, of which 50 per cent to be spent on developing back-end infrastructure; (ii) minimum 30 per cent procurement from small industries; and, (iii) location within larger cities with at least 1 million population. Effectiveness of these conditions will depend upon the manner in which the guidelines are framed.

The study seeks to trace the evolution of the policy since the mid-2000s and highlight various interactions, representations, policy changes, corporate actions and some operational aspects of foreign wholesale traders. A part of the ongoing work has been accepted for publication in the Volume of the International Seminar in Retailing vis-à-vis Farm Economy of India to be published during 2014–15. Certain issues are still evolving and these could impact the policy towards the sector significantly. It is proposed to bring out a monograph during 2014–15 covering these further developments. The study is being jointly undertaken by Prof. K.S. Chalapati Rao of ISID and Prof. Biswajit Dhar of RIS.

  • Employment in India’s Economic Development: Approaches, Policies and Performance

Employment has found a place among the major objectives in the development agenda for India right from the initiation of development planning. During the initial two decades of planning, employment was seen both as a way to utilize labour for development and to prevent emergence of unemployment. Employment was seen as a corollary of economic growth. Economy, however, grew at a lower rate than envisaged and labour force grew at a higher rate than projected. An effort was, therefore, made in mid-1970s, to introduce an employment-orientation in the pattern of growth by laying special emphasis on employment intensive sectors. Also, special programmes of self-employment and short-term wage employment in public works were introduced.

With the availability of comprehensive data from the NSSO surveys, periodical assessment of the extent and trends of employment and unemployment became possible and was attempted in each of the Five Year Plan documents starting with the latter half of 1970s. But the fact that employment needs to be included as a concrete goal of development planning was, however, recognized in mid-1980s when employment targeting was included as part of the plan exercise. The exercise was reviewed over the next decade.

Starting with the 1980’s, the Indian economy moved to a higher growth path and the trend was further strengthened with the introduction of economic reforms in 1991. It was higher growth that was, by and large, to be relied upon for achieving the employment objective. However, the experience of the 1990’s belied all expectations. A renewed urgency to bring employment back into focus formed the basis of a new approach to employment in the Tenth Plan (2002–2007). By the middle of the first decade of the new millennium it seemed that expectations regarding growth of employment were more or less fulfilled and that employment may not pose such a great challenge. However, the prospects of employment generation seem to have been overestimated as they were based on elasticities observed in recent past which were suspected to reflect a rather ‘spurious’ growth of employment.

Further, the outcomes of planner’s efforts to incorporate employment in growth strategy have largely been disappointing in the Indian case. Though employment growth has taken place, it is of poor quality in terms of productivity and income. As a result, employment growth has not always been accompanied by corresponding decline in incidence of poverty. It is in the above context that the study attempts:

  1. A critical analysis of the approaches to employment in Indian Five Year Plans with a view to examine how far the idea of mainstreaming employment in growth strategy was followed;
  2. An account and assessment of macro-economic and sectoral policies and special employment programmes in terms of their impact on employment;
  3. A comprehensive account of the growth of employment over the last four decades in sectors, sub sectors and rural-urban location;
  4. An analysis of the dynamics of qualitative and structural dimensions of employment in terms of sectoral composition, and employment status categories and organised-unorganised segments; and,
  5. Development of a framework for an employment-oriented growth strategy and policy interventions required for it.
The report was prepared and submitted to ICSSR under the National Fellowship Programme by Prof. T.S. Papola in July 2013.
  • Short term Research Studies on Industrial Sector using ASI and DGCI&S data base for Department of Commerce, Ministry of Commerce and Industry :
    • “Linkage between growth and manufacturing sector and reflected by ASI and Growth in Exports given by ITC-HS”;
    • “Macro Analysis for working out elasticity of demand for top 10 commodities of India’s exports (1999-10 to 2008-09 and 2009-10 to 2011-12)”
  • The Globalisation, the Development Question and the Current Crisis of Capitalism: A Study of China and India

The study was related to different aspects of development in the context of globalisation with special reference to China and India and was carried out by Prof. Sunanda Sen during March 2010 to March 2012 as part of her ICSSR National Fellow at the institute. The papers covered under the broad subject dealt with theoretical position on global financial flows offering a view which deviates from the condescending attitudes in standard neo-liberal doctrines. The themes handled in these papers range from the systemic crisie as are inherent in the on-going flows of de-regulated global finance, their consequences in terms of instability and lack of growth, parallels between the current crisis and the Great Depression of the thirties, impact of speculation on commodity markets and finally, problems of managing finance in de-regulated economies with special reference to China and India. The Report was submitted to the ICSSR in December 2012.

  • Structural Changes, Industry and Employment in the Indian Economy: Macro-economic Implications of Emerging Pattern

The recent pattern of structural changes raises a few basic questions relating to sustainability of development process, on the one hand, and equity and employment, on the other. How far is the decline in the importance of agriculture without corresponding increase in the share of industry, particularly manufacturing, and growing importance of the services sector represents a sustainable pattern of development? Is it a reflection and consequence of greater integration of Indian economy in the world economy as part of the globalisation process, on the one hand, and changing nature of the industrial, particularly manufacturing, sector where its linkages with agriculture and services, rather than its size as such, assumes greater importance? With the stagnant share of industrial sector in the economy and its declining employment potential, will the services sector expand fast enough to provide employment to increasing labour force? Will such an expansion be induced by growth in the industrial sector or will take place independently? These and other related issues arising out of the on-going changes in the structure of output and employment in the Indian economy are not only interesting from the an analytical academic viewpoint, but have strategic implications for the sustainability and equity of economic growth.

The Institute has been carryed out a research programme on the subject with the sponsorship and financial support from the Indian Council of Social Science Research (ICSSR). The three-year programme covers six major themes and within them a number of studies have been carried out as listed below:

Theme 1  Growth and Structural Changes in Indian Economy

  1. Growth and Structural Changes in Output in India since Independence: A Study Report, Surajit Mazumdar click to download

Theme 2  Employment Implications of Structural Changes

  1. Growth and Structure of Employment: Long-Term and Post-Reform Performance and the Emerging Challenge, T.S. Papola & Partha Pratim Sahu click to download

Theme 3  Growth and Structure of Industry 

  1. Growth and Structural Changes in Indian Industry: Organised Sector, T.P. Bhat
  2. Growth and Structural Changes in Indian Industry: Unorganised Sector, Ajit Jha
  3. Small and Large Industry Linkages, Jesim Pais & Partha Pratim Sahu
  4. Inter-Regional Disparities in Industrial Growth and Structure, T.S. Papola click to download
  5. Structural Changes in Indian Private Corporate Sector, K.V.K. Ranganathan & M.R. Murthy

Theme 4  The Services Sector

  1. Growth and Structure of Services Sector in India, Jesim Pais

Theme 5  Income Distribution, Demand-Supply Balance and Prices
                (modified to mainly include issues of disparities and inequalities of various kinds)

  1. Disparities in Pattern of Consumption Expenditure, Satyaki Roy click to download
  2. Changes in Factor Shares, Satyaki Roy
  3. Human Development: Structural and Changes across States, Satyaki Roy

Theme 6  Trade

  1. Structural Changes in India’s Foreign Trade, T.P. Bhat click to download
  2. Import Intensity of India’s Exports, Mahua Paul
  3. Role of States in Exports, Mahua Paul

A two-day workshop was organised during 7–8 July 2011 to discuss the findings of seven studies completed by them and scope and preliminary findings of some other studies. About 50 scholars participated in the workshop. The seven studies discussed in the workshop were revised and finalised incorporating the comments and suggestions received in the Workshop.

A programme-end seminar was organised in 20–21 April 2012 in which the findings of the remaining seven studies completed after the July 2011 workshop and also a paper synthesizing the findings of all 14 studies were presented and discussed.

  • Structural Changes in the Indian Economy: Emerging Patterns and Implications, T.S. Papola, click to download

Prof. T.S. Papola is the Principal Coordinator and Prof. M.R. Murthy is the co-coordinator of the programme.

  • Sustainable Development: Emerging Issues in India’s Mineral Sector

The project is funded by Planning Commission. A field study for the project has been initiated. Visits were made to a few selected mines in Jharkhand and Orissa where extensive discussions and interviews were held with the mining executives, local community representative and government officials. Further visits are planned to Goa and Karnataka in the coming months. Nilmadhab Mohanty is the Project Director.

  • Employment Challenges in North-Eastern States of India: Role and Potential of the Unorganised Manufacturing Sector

Based primarily on secondary data sources such as the NSS reports on unorganized manufacturing sector, this study analyses the critical issues of employment challenges and potential in eight north-eastern states of India. The study is supported by the V.V. Giri National Labour Institute, Noida. Partha Pratim Sahu is Principal Researcher.

  • Linkages between Large Enterprises and the Unorganised Sector: Review of Issues and Past Studies

The present study presents a detailed review of existing literature on systems of subcontracting in India and other countries. The review includes both theoretical as well as empirical studies based on primary and secondary data sources. The study also makes a critical review of government policies on different aspects of subcontracting linkages. The study was sponsored by the National Commission for Enterprises in the Unorganised Sector (NCEUS). Prof. T.S. Papola was the co-ordinator. Dr Partha Pratim Sahu and Dr Jesim Pais are the principal researchers.

  • Linkages between Large Enterprises and the Unorganised Sector: A Study of Subcontracting Relations based on Secondary Data

Based on various secondary data sources, this study provides empirical evidence on the pattern and magnitude of subcontracting in micro and small manufacturing enterprises, across different industry groups and analyses whether there are any sector specific features in functions and linkages. It illustrates types, nature and extent of linkages and their implications for the micro and small enterprises. In terms of select performance indicators, a comparative analysis of enterprises that are engaged in subcontracts and others that are not has been attempted to identify factors that work for or against long term relationships between the large and micro and small firms. Subcontracting as an instrument for technological upgradation and employment expansion in micro and small manufacturing enterprises has also been discussed. The study also discusses various difficulties associated with subcontracting system. The study was sponsored by the National Commission for Enterprises in the Unorganised Sector (NCEUS). Prof. T.S. Papola was the co-ordinator. Dr Partha Pratim Sahu and Dr Jesim Pais are the principal researchers.

  • The Employment Implications of Current Financial Crisis: Challenges, Threats and Coping Strategies in India

After the global slow-down in late 2008 there has been a growing concern over its impact on employment. The study, commissioned by the South Asian Network of Economic Research Institutes (SANEI), aims to analyse the employment impact of recent global slow-down, with special focus on small manufacturing (exporting and non-exporting) enterprises. Partha Pratim Sahu is Principal Researcher.

  • Quality in School Education: Accreditation Standards for MCD Schools for Quality School Governance

The Institute has taken up research project on “Quality in School Education” sponsored by Quality Council of India (QCI), Department of Industrial Promotion and Policy, Ministry of Commerce and Industry, Government of India. The terms of references of the study are:

  • select of two schools from each boards namely CBSE, ICSE, IBO and Delhi Board;
  • requirements of compliance status of the recognition/affiliation bodies;
  • conducting a comparative study of the syllabus, curriculum and pedagogy in selected schools;
  • study of student assessment/evaluation/examination by these affiliating bodies and then the actual operational status in the schools;
  • study of the compliance status of the schools against the requirements of the accreditation standard and listing of good practices in each of the categories of school of different Boards and making comparative assessment.

As per the TORs, the final report has been submitted to the QCI. For the purpose of case study, two schools were selected from each of the four boards viz CBSE, ICSE, IBO and Delhi Board. A survey was conducted in these schools and, personal interview and discussions were held with the functionaries of different Boards (CBSE, ICSE, IBO and Delhi Govt. School), with the help of a structured questionnaire. Discussions were also held with the concerned officials of NCERT, SCERT and Principals of selected schools for the purpose of the study. The final report was submitted in March 2009 and findings of the study were appreciated by QCI. It is hoped that the study will provide useful information for improving Quality Education in Primary Schools. Shri D.N. Gupta is the principal co-ordinator.

  • e-Governance: IT Application for Land Survey and Settlement

The objective of the project was to prepare an approach paper and survey methodology through photogrammatry and IT application for better land management in order to provide a detailed overview of land information system (LIS). The following aspects were covered: land survey (through photogrammatry), digitization of maps, land database development, generation of ROR and requirement of hardware and software.

The report covered the key steps in the process of Photogrammatry-based survey, map generation, preparation of Records of Rights (ROR), GIS, and value added services. It provided the detailed methodology for land formation system for pilot project in Bihar having the following salient features: Integrated digital record of all land information of both rural and urban areas; automatic updating; transparency and accessibility: ensuring single point availability and multi-point accessibility through information kiosks, internet, e-Seva Centres, etc; GIS-based comprehensive land information: available in a multilayered GIS right from individual landholding up to the State level for rural and urban areas; operation by a single, dedicated agency to institutionalize the system and providing services to the citizens through a unified interface. The project undertaken by Shri D.N. Gupta was sponsored by Infrastructure Leasing & Financial Services Ltd. under the e-Governance programme.

  • Impact of Foreign Direct Investment on Selected Sectors of India: A Comparative Study with Selected Countries

The study made a comparative study of policies and procedures and actual inflows of FDI in select industries and a few countries in Asia and Latin America viz., China, Brazil, Mexico, Malaysia and Thailand. The study focussed upon information technology, transport equipment, other engineering industries, food processing sector and drugs & pharmaceuticals which offer a mix of export potential, technology intensity and employment generation and which have also accounted for a significant portion of FDI inflows into India in the new policy period.

The principal investigators of the study are: K.S. Chalapati Rao, K.V.K Ranganathan and M.R. Murthy. Final report of the study was submitted to the Office of the Economic Advisor, Department of Industrial Policy & Promotion, Ministry of Commerce and Industry in March 2007.

  • SME Clusters in India: Identifying Areas of Intervention for Inclusive Growth

The project comprised of a comprehensive study on SME clusters in India in view of integrating the promotion of clusters to the broader goals of ‘inclusive growth’. The study critically reviews the different phases of policies undertaken by the government in reference to small scale sector and locates the relevance of cluster based approach beyond the traditional ‘large/small’ dichotomy. The study includes field survey of four clusters related to footwear and garments and also two other clusters related to traditional and high-end products primarily to capture the production relations in a comparative framework. The footwear clusters studied were located at Kolkata and Agra and the garments producing clusters visited were at Tirupur and Delhi-NCR. Using the case study approach the project tried to capture also the differences in industrial dynamics in the case of ancillaries, industrial estates, techno-poles and traditional manufacturing clusters and propose policies that could help generate a course of industrialization targeted to the dual goals of employment and efficiency.

The project draws attention to the fact that national level policies and firm level parameters are both incompatible to a proper cluster development programme. It is necessary to devise meso-level interventions that can capture the specifics of the region and at the same time could indulge in cumulative generation of collective efficiency. Facilities and subsidies given to small firms at various levels should encourage clustering and cooperative competition and need not be focused to successful firms. Policies should aim at exposing the cluster to new challenges of competition such that linkages between firms do not get rigidly defined. At the same time some kind of regulation is required to encourage/discourage new start-ups such that easy entry could not generate a race to the bottom. In this connection proper execution of labour rights is not only required but needs to be promoted through the reward-punishment structure. Apart from basic physical infrastructures such as roads, water and power supply, public investments are required on human development and capability building. This requires developing of autonomous real service centres on the one hand and on the other the government should encourage financial transparency and disclosure such that complex issues related to SME finance becomes more tractable. In sum a process of regional planning should evolve primarily to take care of the issues specific to the region. This involves a political process and the voice of the cluster should be adequately represented in that process to appreciate their claims in the public good not as individuals or households but with a defined identity of a cluster.

The study was sponsored by the Socio-Economic Research Division of the Planning Commission. Prof. S.R. Hashim was the Project Director, Prof. M.R. Murthy and Dr. Satyaki Roy were the principal researchers. The final draft report of the study was submitted to the Planning Commission in March 2010.

  • Subcontracting Relations between Large Enterprises and the Unorganised Sector: Evidence from a Primary Survey

The existing secondary databases on subcontracting being inadequate and limited to very few characteristics, a field survey is undertaken to supplement the analysis based on secondary data. The study attempts to analyse the complete functioning of subcontracting system from the perspective of micro and small enterprises. The study analyses many important aspects of contractual relationships such as nature, type and duration of contract; status, location and number of buyer firms; mechanisms of price fixation and modes of payments; the benefits and constraints for the small firms working under contract and so on. The study also briefly discusses the issue of conditions of work in micro and small enterprises. The study was sponsored by the National Commission for Enterprises in the Unorganised Sector (NCEUS). Prof. T.S. Papola was the co-ordinator. Dr Partha Pratim Sahu and Dr Jesim Pais are the principal researchers.

  • Aid Salary Discrepancies and Development Workers Performance

The project is a part of a bigger study titled “Are Development Discrepancies Undermining Performance” (ADDUP) covering six countries namely; China, Uganda, Papua New Guinea, Solomon Islands and Malawi in collaboration with Massey University, New Zealand and coordinated by Prof. Stuart C. Carr of the Massey University’s Poverty Research Group in New Zealand.

This is an interdisciplinary project which examines a range of issues in development work, from pay and conditions to relationships between expatriate and local staff. The main objective of the study is to assess how pay diversity affects people at work in aid projects, development sectors in international organisations, international NGOs, multinational corporations and academic institutions. It attempts to compare international and local compensation systems and explore the extent and impact of pay diversity and put forward various ways to improve the system that would be beneficial for everyone. ADDUP’s purpose is to make a constructive contribution towards understanding and managing pay diversity in aid and other capacity development work. The approach uses a stakeholder model—seeking participation from important, key organisations to help complete a meaningful and helpful project on an important issue for employers and employees.

As a part of this study, ISID conducted a survey of about 240 respondents from international organisations, international NGOs, multinational corporations and academic institutions. Preliminary findings of the survey were discussed in a one-day workshop on June 02, 2009 at the Institute. Key stakeholders; representatives of UN and other international organisations, embassies and international NGOs, and subject matter experts participated in the workshop. Prof. T.S. Papola was the project Director and Dr Jesim Pais & Dr Partha Pratim Sahu are the principal researchers.

  • Import Intensity of India’s Exports in Liberalized Trade Policy Regime

There are divergent views on effects of trade liberalization on economic growth and employment generation. However, this is not the case with export expansion and improvement in competitiveness. The impact of trade liberalization is closely related to initial level of economic openness. If initial level of economic openness is more, growth of output, exports, employment and competitiveness will be more positive. But it may not be prudent to attribute higher growth to trade liberalization alone. Available studies on various countries are not conclusive on the effects of trade liberalization on employment generation. The objective of the study is to assess empirically the impact of trade liberalization on output, exports and employment generation and competitiveness in India’s manufacturing sector.

The results of the study reveal that import intensity of exports in manufacturing sector has increased and so is the competitiveness. Liberalization has led to expansion in output and employment, particularly in labour-intensive and export-oriented industries. Many of the capital-intensive industries also witnessed rise in output and competitiveness. Liberalization policies have thus brought about a favourable impact on Indian industries. But trade reforms must be implemented and sequenced suitably, as a part of broader effective growth strategy to enhance economic growth in India.

The principal investigators of the study are: T.P. Bhat, Atulan Guha, Mahua Paul and Partha Pratim Sahu. Final report of the study was submitted to the Department of Commerce, Ministry of Commerce and Industry in March 2007.

  • Export-orientation of Foreign Manufacturing Affiliates in India

Foreign firm’s contribution to India’s exports continued to be marginal whereas their export contribution has grown significantly in other developing countries like China, Malaysia, Singapore, Chile, Hungary, Poland and Czech Republic. For example, foreign affiliates contributed just about 4.5 per cent total exports in 1990 in the case of India. What explains this poor export performance of FDI in Indian case?

The present research project has estimated the export intensity and shares of foreign firms for 17 Indian industries over 1991–2005 and analyzed factors that determine export-orientation of foreign manufacturing affiliates in India to explain foreign firm’s least biases towards export activities.

The empirical result also suggests that the export-orientation of foreign firms has changed positively following the adoption of an outward looking regime since 1991. The new policy regime seems to have stimulated exports activities of foreign affiliates by producing an export-friendly business atmosphere. Nevertheless, the Indian government needs to be both proactive and cautious so far as the nature and composition of exports, the propensity for which is keenly opted for by the foreign affiliates. The overwhelming emphasis upon exporting mineral products following preliminary processing is an ominous sign that potentially reduces the beneficial impacts from FDI to the host country.

It has been observed that foreign affiliates in India have significantly lower export intensities in R&D- and advertising-intensive industries. The host country policies may target foreign firms operating in these industries so as to encourage them to adopt exports by providing supportive incentives.

The study was initiated internally by Jaya Prakash Pradhan and completed in August 2006.

  • Conditions of Work and Promotion of Livelihood in the Unorganised Sector

The study envisages preparation of papers on the following aspects of work and employment in the unorganised sector.

  1. Magnitude and structure of employment in different categories; self-employed and wage labour, distribution by industry and occupation, rural-urban locations, gender and social categories such as castes and so on.
  2. Working conditions of wage labourers in the unorganised sector in terms of physical environment, conditions of employment such as hours of work and holidays, wages, social security, grievance settlement procedure, legislative and institutional arrangement for ensuring minimum conditions of work in the unorganised sector.
  3. Levels and sources of livelihood of self-employed workers, access to inputs, credit and markets, programmes for promotion of livelihoods and their effectiveness.

Background papers, based on secondary material and past studies, were prepared and submitted to National Commission for Enterprises in the Unorganised Sector (NCEUS) and have been used as major input in the final report of the Commission. T.S. Papola was the project Director and Jesim Pais, Partha Pratim Sahu and Rathi Kant Kumbher are the principal researchers.

  • Labour Regulation in Indian Industry: A Study of its Impact on Growth, Investment and Employment

The project consists of studies, consultations, discussion and publications with a view to contributing to the on-going debate and policy making on the subject, by especially examining the impact of existing labour regulation on growth, investment, employment and labour standards in Indian industry. The main aspects of the project are as follows:

  1. Labour Policy and Legal Framework in India: A Review; C P Thakur
  2. Labour Regulation in Small Enterprises: Coverage and Impact; V N Prasad
  3. Labour Regulation and Its Impact: A Review of Studies and Documents; T S Papola, G S Mehta & Vinoj Abraham
  4. Effectiveness of Labour Regulations in Indian Industry; Jesim Pais
  5. Labour Regulation, Industrial Growth and Employment: A Study of Recent Trends in Andhra Pradesh; D N Reddy
  6. Impact of Labour Regulation on Growth, Investment and Employment: A Study of Maharashtra; K R Shyam Sundar
  7. Labour Regulation and Industrial Development in Uttar Pradesh: Some Recent Trends; Alakh N Sharma & V Kalpana
  8. Labour Regulation and Industrial Development in West Bengal; Debdas Banerjee
  9. Labour Regulation, Labour Flexibility and Labour Reforms in Europe: Some Perspectives with Possible Lessons for India; A V Jose, Pietro Garibaldi and K R Shyam Sunder
  10. Labour Regulation in Indian Industry: Towards a Rational and Equitable Framework; T S Papola, Jesim Pais and Partha Pratim Sahu

Ten detailed research papers have been prepared under the programme and integrated into a report incorporating a framework for a fair and efficient labour regulation in India conducive to growth and employment generation and observance of minimum labour standards in Indian industry.

The study is undertaken in collaboration with the International Institute for Labour Studies (IILS), Geneva. The European Union (EU) has sponsored this research project. T.S. Papola, ISID and A.V Jose, IILS are the project Directors.

  • Defining the Role of Government in Transnationlization Efforts of Indian SMEs: A Case Study of Indian Pharmaceutical Industry

Over the decades, small and medium enterprises (SMEs) have emerged as a strong player in the Indian pharmaceutical industry, although they are now facing increasing national and international competition. Enlarging market focus and improving firm-specific competitive capabilities through transnationalization, thus, turn out to be critical strategies for Indian pharmaceutical SMEs. The present study, commissioned by Department of Scientific and Industrial Research, Ministry of Science and Technology, critically discussed the role of government polices to promote internationalization efforts by small pharmaceutical firms. It also analyzed their internationalization growth in terms of export performance and outward FDI as compared to large firms during the period of economic reforms and undertook empirical analysis of the various determinants of their internationalization process.

The pharmaceutical industry in India is found to be largely dominated by small and medium-sized firms. The small firms are operating at a disadvantageous position as compared to their large counterparts. The research shows that in-house R&D capability, import of capital goods and machineries, inter alia, are crucial determinants of export activities by SMEs. The case study of select pharmaceutical SMEs suggests that individual firms undertake different strategies such as product innovation, quality improvement, collaborative R&D with government and agencies to successfully operate in the international market. Pharmaceutical SMEs are also undertaking outward-FDI to improve and enhance their overall competitiveness in the global market.

The existing government polices to promote export and other forms of internationalization strategies are found to be grossly inadequate. A large number of pharmaceutical SMEs, are either not aware of different government schemes or are not getting any substantial benefits from such initiatives. The present study identifies specific intervention areas, such as availability of low cost finance for technological up-gradation and quality improvement, information on overseas markets, improvement in crucial physical and R&D infrastructure, promotion of pharmaceutical SMEs clusters, special and discriminatory incentives schemes for pharmaceutical exporting SMEs and so on, which need urgent policy attention to facilitate Indian pharmaceutical SMEs to stand on their own in the present competitive business environment.

Final report of the study was submitted to Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology, Government of India. Jaya Prakash Pradhan and Partha Pratim Sahu are the principal researchers.

  • High-tech Industries, Employment and Global Competitiveness

High-tech, knowledge-based industries like information technology, biotechnology, and pharmaceuticals have played an important role in the transition of the Indian and Chinese economies – the two largest and fastest developing economies in the world today. This process has been characteristically marked by the expanding reach of multinational enterprises, flows of foreign direct investment, unprecedented advancement of information and communication technologies (ICT) and knowledge-based industries, and infusion of ICT across the entire spectrum of industries and activities.

This interdisciplinary book offers an in-depth understanding of the behaviour of firms in these industries, analysing the strategies they adopt in a globally competitive environment, the role they have played in ushering in the growth revolution in China and India, and the contribution they have made to the nature and growth of employment. Findings are based mostly on data collected through fieldwork and surveys. The book also discusses the emerging nature of scientific and technological developments like nanotechnology, novel materials, spintronics, and quantum computers, suggesting that in the future, knowledge and technology will become the real sources of wealth for nations.

This book will be of particular interest to those in the fields of economics, international business, and industrial and technological development management.

The book is edited by Prof. S.R. Hashim, ISID & Vice-President, Forum for Global Knowledge Sharing and Prof. N.S. Siddharthan, Honorary Professor, Madras School of Economics and Member-Secretary, Forum for Global Knowledge Sharing.

It is published by Routlege India, Taylor and Francis, Group, New Delhi.

  • India and China in WTO: Building Complementarities and Competitiveness in the External Trade Sector, project report submitted to the Planning Commission, Government of India, 2005.

  • Employment Implications of Growing Exports: With special focus on Services Exports, the study report was submitted to the Ministry of Commerce & Industry, 2005.

  • Two sub-Chapters: 'Economic History of Tobacco Production in India' and 'Policy Interventions: Supply-side Actions' for 'Collaborative Approaches for Comprehensive Tobacco Control in India' project for the Health Related Information Dissemination Amongst Youth (HRIDAY). This is a sponsored project of the Ministry of Health & Family Welfare, Government of India and Centers for Disease Control & Prevention, USA , 2004. Final report of project has come out as a publication Report on Tobacco Control in India', K. Srinath Reddy, and Prakash C Gupta (eds.), Ministry of Health & Family Welfare, 2004.

  • Review of Existing Policies and Legislation for Micro and Small Enterprises (MSEs) in Uttar Pradesh, 2004. The project was sponsored by the ILO.
  • Study for Working out the Details of Steel Demand in Oil, Gas, Water and Slurry Transmission Segments, 2004. The study was sponsored by the Steel Authority of India Ltd.

  • Livelihood Strategies for Sikkim, 2003. The project report was submitted to the UNDP.

  • Savings and Capital Formation of the Indian Private Corporate Sector: An Attempt at Explaining Recent Trends, project report submitted to the Union Ministry of Finance, 2003.

  • Savings and Investment of the Indian Private Corporate Sector during the'Nineties, sponsored by the Union Ministry of Finance, 2002.

  • India's External Trade during the 'Nineties: Some Aspects - An Analysis of Customs House and Company Data, a project report sponsored by the Planning Commission, November 2002.

  • Beyond the Washington Consensus - Governance and the Public Domain in Constrasting Economies: The Cases of India and Canada, a joint project of the Robarts Centre for Canadian Studies, York University, Canada; Institute for Studies in Industrial Development and Centre for Research in Rural and Industrial Development (CRRID), 2001.

  • Global Capital Flows and the Indian Stock Market, a project sponsored by the Indo-Dutch Programme on Alternatives in Development (IDPAD), 1999.

  • Privatization in India - Social Effects and Restructuring, country study sponsored by the International Labour Organisation (ILO), 2000.

  • Design of Social Safety Net for the State of Madhya Pradesh, sponsored by Asian Development Bank (ADB), 2000.

  • Madhya Pradesh - Implementation of Public Sector Restructuring Programme: A Poverty Impact Assessment Study, sponsored by the Asian Development Bank (ADB), 1998.

  • Foreign Investment Approvals and Implementation Status: A Review (August 1991- December 1994), sponsored by the Union Ministry of Finance, 1995.

  • Foreign Investment Approvals: An Analysis (August 1991 to July 1993), sponsored by the Union Ministry of Finance, 1994.

  • ISID Development Indices: Monitoring Stock Exchange Trends, sponsored by the Union Ministry of Finance, 1994.

  • India's Trade Policy and Export Performance of Industry, sponsored by the Indo-Dutch Programme on Alternatives in Development (IDPAD), 1994.

  • Economic Liberalisation and Indian Agriculture, sponsored by the Food and Agriculture Organisation (FAO), 1994.

  • Directory of Statistics of International Investment & Production in India, prepared for the United Nations Centre on Transnational Corporations, 1993.

  • Small and Medium-sized Transnational Corporations, TCMD Division of United Nations Department of Economic and Social Development, 1992.

  • Political Economy of India, 1992.

  • Directory of Joint Stock Companies in India, 1990: A Review, a report submitted to the Department of Company Affairs, 1992.

  • India's Imports and Exports: Some Insights (An Analysis of Daily Trade Register Data), a reported submitted to the Union Ministry of Finance, 1991.

  • Exchange Rates, Trade Policy and Tariff Structure, a reported submitted to the Union Ministry of Finance, 1991.

  • Directory of Statistics of International Investment and Production in India, prepared for the United Nations Centre on Transnational Corporations (UNCTC), 1990.

  • Patterns in Indian Agricultural Development: A District-Level Study, sponsored by the Planning commission, 1989.

  • Public and Private Corporate Sectors in India: A Study in Characteristics and Trends, project report submitted to the Standing Conference of Public Enterprises (SCOPE), New Delhi, 1988.

  • Joint Sector Enterprises in India: Rationale, Growth and Performance, 1995.

  • Employment Generation and Rural Labour.

  • Patterns of Rural Industrialisation and Non-farm Employment in India.

  • Rural Labour Markets and Incidence of Poverty.

  • Export Promotion and Indian Joint Ventures, 1990.

  • Small Scale Sector and Big Business, a study prepared under the ICSSR Research Programme, Regulation of Private Corporate Sector In India, 1984.

  • Functioning of the Industrial Licensing System, a study prepared under the ICCSR Research Programme, Regulation of Private Corporate Sector In India, 1983.

  • Ownership and Control Structure of the Indian Press, Report submitted to the Second Press Commission, 1981.


         
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