Urbanization in India and Productivity of Manufacturing Industries: An Empirical Study

In this paper, we attempt to empirically analyse the impact of urbanization on the productivity of manufacturing industries in India. Our results from a panel of 15 industries across 13 states during the period 1981-2008 suggest that, there is variation in the effect of urbanization both within and across industries. The variation within an industry is observed across different time periods. As mentioned in literature, technology intensive and innovative industries seem to have benefitted more from the pattern of urbanization in the country.