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Unit 17: Industrial Sector in Post-Reform Period

dimension of the problem, as the wider consequences for labour utilisation outside the modern sector, Notes
is overlooked in the vision that sees industrialisation as the remedy for ‘unemployment’ and under-
employment”.
17.3 Pattern of Ownership of Industries
The Annual Survey of Industries has reclassified data about the ownership pattern of industries into
three categories. In the non-corporate sector are included
Table : 4 Ownership of industries (2007-08)

Factories Productive Employees Net Value Wages
Capital (`` `` ` crores) (‘000) Added (`` `` ` crores) Worker

1. Non-Corporate Sector 89,593 78,301 2,473 36,503 34
2. Corporate Sector 52,396 10,17,345 5,323 3,81,586 70
(a) Private 52,206 10,00,984 5,296 3,75,929 69
(b) Public 190 16,360 26 92,024 2,30
3. Others 4,394 66,437 400 63,501 1,29
Total (1+2+3) 1,46,385 11,62,085 8,198 4,81,592 62

Note :
1. Non-corporate sector comprises of individual proprietorship, Joint Hindu Undivided Families
(HUF) and Partnership
2. Private corporate sector includes public and private limited companies
3. Others include Khadi & village industry, handloom, co-operative societies etc.
Source : Annual Survey of Industries (2007-08)
industrial units which are owned by individuals proprietorships, joint families (Hindu Undivided
families -HUF) and partnerships. Secondly, the corporate sector is sub-divided into two sectors - (a)
private corporate includes public and private limited companies; and (b) public corporate sector
includes Government Departmental Enterprises and public corporations. There is third category
‘others’ comprising of khadi & village Industry. Handloom and co-operative societies running
industrial units e.g. sugar mills run by co-operative societies in Maharashtra etc.
In terms of number of units, the non-corporate sector accounts of 63% of units, mostly in small industries
sector referred to as the unorganized sector, but they employed 7.3% of productive capital, accounted
for only 8.2% of value added, but provided employment to nearly 31% of industrial labour.
The corporate sector accounted for 91.3% of the productive capital, 90.4% of value added and provided
employment to about 66% of industrial labour. Within the coiporate sector, the private sector accounted
for 83.2% of productive capital and 78.4% of the value added and provided employment to about
62% of industrial labour. Along with this, the public sector provided 8% of productive capital with
12% of value added and provided employment to only 3.3% of total industrial labour of the order of
8.45 million.
Others were a minor category where contribution productive capital, value added and employment
was insignificant.
Although public sector was relatively small comparison to the private sector, yet a noteworthy of the
changing industrial pattern in the planning era in the is the growth of the public sector in a big way
in the he and basic industries, the machine goods sector, engineers industries etc. which provided the
industrial base of economy and thus created basic infrastructure of economy to enable the private
sector to flourish later this sense, the role of public sector as the engine of growth is unique.
Interestingly, the wages per worker received 2004-05 reveal that they were lowest in non-corporate
sector as ` 27,603. They were higher in ‘others’ as & Village Industries, Handlooms etc. as ` 50, 385
because the State fixed the wages, irrespective of the earned. In the corporate sector or the organized

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