RESTRICTED Report No. SA-9a Thi reporwas;prepare'd'or use.wihin the Bank and its oft ated organizat Ionsv -1-. HIl lFul I fz Fl: uI: IU Ia [sIIl IIl rJll ull I1 filil lu ulu I&-lul Theyd-o not occept responsibility for its accuracy or completeness. The report may nor ue pubisieu niur riiuy it be quuued ua represrenting trieir views. INTERNATIONAL BANK FOR R:ECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION INDIA - A REVIEW OF T P1NDT TN 1MANT\TACTTTRTNGrT TNTTTTTTy ANNEX TO VOLUME I STATISTICAL TABLES April i, 1970 South Asia Department Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
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RESTRICTED
Report No. SA-9a
Thi reporwas;prepare'd'or use.wihin the Bank and its oft ated organizat Ionsv -1-.
HIl lFul I fz Fl: uI: IU Ia [sIIl IIl rJll ull I1 filil lu ulu I&-lul
Theyd-o not occept responsibility for its accuracy or completeness. The report maynor ue pubisieu niur riiuy it be quuued ua represrenting trieir views.
INTERNATIONAL BANK FOR R:ECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
INDIA - A REVIEW OF
T P1NDT TN 1MANT\TACTTTRTNGrT TNTTTTTTy
ANNEX TO VOLUME I
STATISTICAL TABLES
April i, 1970
South Asia Department
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1 Indian Rupee U.O. $0.13
1 U. S. Dollar Rs. 7.5
1 Lakh = 100 thousand
1 Crore = 10 million
The Indian financial year runs fromApril 1 through March 31.
LIST OF TABLES
.Table No.A. OUTPUT
- Grouith of National Product, by Sector inConstant Prices, 1961/62 to 1967/68 . . 1
- Contribution of Manufacturing to the NationalProduct, 1950/51 to 1968/69 . . . 2
- The Changing Structure of Indian Industry,1951 to 1967 . . . . . . 3
- Annual Index of Industrial Production,1951 to 1961 (1956 weights) . . . 4
- Annual Index of Industrial Production,1956 to 1968 (1960 weights) . 5 .
- Share of Public Sector in Industrial Output . 6- Per Capita -Value .Added-in Manufacturing by.
States 1960 and 1966 . . . . . 7- Percentage Shares of States in Manufacturing
Employment, Output & Value Added,1959 and 1966 . . . . . . . 8
- Distribution of Labor in Manufacturing Industriesby State and by Industry - 1963 . . . 9
- Share of Government Purchases, Exports andImports on Net Output of Industrial Branchesin India (1963) - % . . . . , 10
of Company - 1964/65 and 1965/66 . . 40- Net Profits and Losses of Major Public
Sector Enterprises 1964/65 to 1967/68 . 41- Public Sector Industry - Profitability Ratios . 42- Internation Price Comparisons . . . 43- Economic Situation of 73 Largest Manufacturing
Enterprises in India, Classified by MainBranches of Activity (1965/66) . . .44
- Business Behaviour of Largest Enterprises(compared to other Enterprises) . . 45
- Concentration Ratios and Related Efficiency Co-efficients of Indian Industry, 1965/66 . 46
- International Comparison Between LargestIndian and I3on-Indian IndustrialEnterprises (1966) . . . . . 47
- Economy of Scale in Indian Industry . . 48- Benefits from Using Capital Intensive
Techniques (1965/66) . . . . . 49- Gains or Losses due to Differential Capital
and Labor Costs in Indian and ForeignEnterprises, 1966 * . . . . . 50
-. Economic and Technical Profiles of IndianIndustrial Enterprises (various Sizes andBranches) Compared to Profiles of IndustrialEnterprises in Other Countries . . . 51
-- Basic Ratios of Indian Industry - Changeover Time . . . . . . . 52
Total GDP 100.0 100.0 100.0 100.0 100.0 1(0.0 100.0 lCO.0 100.0 100.0 100.0
S'ource: 1960/61 to 1967/68 data are taken from "Estimales of National. Prcduct, 1960/61 to 1967/68," CSO, March, 1969. 1968/69 are roughestimates. 1950/51 and 1955/56 are recalculated from the "conventional" and the "revised" series, respectivelr, using themethodology of the 1960/61 - 1967'/68 estimates.
Total Manufacturing 100.00 100.00 100.00 100.00 lOUC.-3Tc
111. All Industry
Mining and Quarrying 7.16 7.47 9.72 8.20 8.20Manufacturing 90.68 88.85 84.91 85.20 82.90Electricity Production 2.16 3.68 5.37 6.60 8.9CO
Total Industry 100.00 100.00 100. 00 M 1.00WCo
Source: Derived from the Annual Survey of Industries and preceeding sur-vevs. excent for 1967 which is ent-irnatd frn t the TIiptt'i l ProductionIndex. The estiaation of 1967 thus assumes that the relationship betweengross out.p_t and valn added is cntnt from. 196- to 1967*. The coverageis the same as for the weights in the Industrial Production Index, and thustends to underetm.ate tex+iles an.d other e',^all-scale iwndustries. "Petro-leum Products" and "Metal Products" do not seem to have been consistentlyAdfined.
TABsLE J
ANNUAL INTiEl OF INDUSTRIAL PRODUCTION1956 %bights
This table is included because 1956 weights are more appropriate for describing grolth in the 1.950's. Structiral changes are such that in fact an indexis reslible only for a few yeari aiounh the base rear. For exa,le, growth of marufactiring output from 1951-61 appea to be 89% isslng 1956 ln1ahtor 103% using 1960 weights.
Classification is from the Ministry of Finance, Economic Survey, 19157/6t.
FT 1960/61 is given under column for 1960.
TABLE 6
SilsE OF FUBLIC SECTOR IN IN0SrRIAL_OUTPUT
Data on Production of Industrial Dndertacings of the Central Qovernment Gross Value of Output Accurding to the Reserie Bank of India(rounded up to 10 ] ahs slncludisig Government owned enterprisesT
1960/61 19653/64 1L965/66 1967/68 1960/6:L - 19&6/66Sales Sales Sales Sales 1960/61 1963/64 196t4/65 1965/66 (index of t
A. Consumer Goods Industries 50 A. Consuter Goods Incantriegs
Nots: Value of sales of petroleum production was added on the assumption that it must contain a certain percentage of refined produicts. Otherwise if it consisted of crude oil only,the total value of petroleum products, xs repoirted by the Reserve BaLnk of Jndia, would be lees than thg value of supposed input of crude oil (as reported by the Indian Oil Corp.).
Sources: a) Bureau of Public Enterprises, Arusual Reports.b) Table 7, Volume II.
n.b. The coverage of this table differs from that of other tables referring to the Public Sector. cf. note to) Table 12.
TABLE 7
PER. CAPITA VAL-UI ADDED i iMTv7AJFACTURLriG BY STAi ITrIS1960 and 1966
Note: Data on the vaLue of tlhe investment licensed, or the average size of the unit,, are notavailale but .-e believed to have risen since 1956. Si-nce 1963, a limi.ted relaxation oflicensing requirements means t]hat the issue of new licenses tends to lag blehirLd investmenttrends.
Source: Report of the :Industrial Licensing Policy Enquiry ComnLittee, 1969
NUJ New Undertaking NA : New ArticleSE Substantia:L Expansion COB : Carrying on Business
There are no official investment estimates in India, butTables 12-25 -Lhich follo7- are our attempt to assemble some rele-vant data, especially on the public sector. Table 12 consistsof Plan outlays. These are not synonymous uith capital formationsince they include a certain amount of current expenditure, buton the w.hole these data are a reasonable guide to overall trends.Table 13 is, in a sense, the master table and attempts -to bringtogethaer the best available public and private manufacturingsector investment estimates and to deflate them into constantpriGes. Thae private sector estimates are derived from thosecalculated in Volume II, and the public sector from the succeed-ing tables. Tables 14-18 are taken from the consolidatedbalance sheets of all undertakings covered by the Bureau ofPublic Enterprises, excluding promotional and developmentalundertakings. These data thus include investment financed byall souirces, including the enterprises' owm depreciation fundsand reserves. The investment estimates given in these tablesare as comprehensive as we can make them, and are thus slightlyhigher than those given in Tables 19-224. The latter classifica-tions of governmental investment cover the same DuoliC sectorenterprises, but include ondlyr those funds *which pass through thecentral government budzet. These data are oenerally reliahlebut it cannot alwrays be assumed that funds disbursed to anarticriJar enternrise -vill become hsical ast in the snmeyear. All these BPE data exclude investment in the largedepartnentall~r-.i factoriesj such as thiose operated by theRailway Board. Lastly, Table 25 is taken from the Reserve Bankcf India source . For reasons exolaied in the text it is notconsistent -Ti h the preceding tables.
7. Total FiLxed Investment at 1960/61 Prices 182 151 146 220 393 403 1439 495 539 542 638 659 694 626 633Private (3a x 6) T7I TY WII I3;7 7I 7 17i TM 1; D 1 w yi391Public: (4a x 6) 12 21 29 66 181 186 163 125 ]94 178 233 243 264 217 232
1/Investment in the non-corporate sector is large, but unknown. The MCAER estimated thal; in 1955/56 to 1955/60 investment by the non-corporate soector averaged Re. 1L5O Crores a year inmachinery aund equipment alone, (NCOAE "Savings in India," New DSLhi, 1965.)
_/i.o., exclu.ding mining and plcatation cmpanies. 1961/62 to 1965/66 data are actuals i'rom Rti data, remaLinder are estimates,
N.B. These data are not sufficiently reliable to justify firm conclusions on year-to-year changes.
Sources: (a.) Rows 1, 2, and 3 are based essentiaLLy on RBI survey data. 1961/62 - 19i5/66 are froa Tables 5 in Volume II. Subsequent data are estimiates based on produiction, import, andstocks data for capital goode. 1950/51 - 1959/60 datai are based onr the RBI s publication "Financial Statisticsi of Jcint Stock Comapanies in India, 1950/51 to 1962/63, withcross-ref,rences to ASI and CMf data as published by the CSO. Unfortunat,ely, none of these data are fully reli;able, for reasons dliscusied in the text.
(b.) Row 4 is based on Bureau of Public Enterprises data for 1960/61 to 1967/68, which is believed to be reasonably accurate. Non-manuifactuxing companies are excluded. Datafor previous years is from the NCQER publication citedl above. For 1960/61 to 1967/68 see TELble 11.
(c.) Row 6 was supplied by the Planning Commission.
TABLE 14
ANNUAL PUB3LIC SECTOR INVESTMENT IN MANUFACTURING INDUSTRY, MINING, AND TRANSPORT
l/i. e. all concerns included by the Bureau of Public Enterprises except promotiona:L and. developmental undiertakings.'- Hitherto classified as a "developTentELl" undertaking, although in fact it has become an oil and gas producer.-3/Chittaranjan Locomotive Works, Varanasi Diesel Works, & Perambur Coach Factory. (Data supplied by the Railway Ministry, includesI a large item entitled1 "suspense" believed to include work in progress ancd inventories.)_V Very rough estimates based on RBI sample surver and "Comnerce" magazine, June 22, 1968.:'/Not really very grand1. There are over 350 central, state m7td statutory corporations, etc. in the public sector, and doubtless
several have slipped through the net. No comprehensive stat'istics exist on the public manufacturing sector as a whole, adlthoughthe! Bureau of Public Enterprises does a sound 3tatistical job in its anmnal repor-t.
(6 /Using the percentages from Table 16.,INeyveli Lignite, National Mineral Development Corporation, National Coal Development Corporation, O.N.G.C.,7,Indian Airlines Corporation, Air India, Shipping Corporation of India, Mogul Line.
-i The residual. Includes large numbers of small non-manufacturing enterprises such as Ashoka Hotels Ltd., whose inclusion maycomrpensate J'or other omissions (note 5). Includes oil compLnies except (.N.G.C.
TABLE 15
CUMULUTIVE INVESTM94T IN OPERATINC AND NON-OPERATING PUBLIC SECTOR ENTERPRISES 1160-1968
B. Undertakings under Construction 61 11.0 160 258 _382 426 310 105 137
4. Fixed Assets, Work in Progress, etc. 58 103 147 237 349 382 278 9L4 1305. Inventories 3 7 13 21 33 44 32 11 7
C. Total Investment in Fixed Assets, etc. (1+2+4) 663 812 1,002 1,207 1,466 1,777 2,132 2,478 2,850D. Total Investment in Inventories (:3+5) 89 129 172 220 278 320 363 5159 71.9E. TOTAL (C+D or A+B) W 17,7 1 77M T7 ,7I IT '2 T 7 .299r 7
Ratios (% of Total Inrestmesnt)
Inventories (D t E) 12 114 15 15 16 15 15 117 20Investment in Operating Concerns (A + E) 92 88 86 82 78 80 88 96 96Produictivie Investment_7 (1+3) as % of E 79 82 83 78 72 68 72 79 84
-/i.e., exclading all work in progress
Source: TabLe 17
TABLE 16
ANNUAL IMNESTMENT ]N OPERAThIkG AND NO)N-OPErAT2ENG PUBLIC SECTOR ENTEEPRISES
B. Undertakings under Construlction 49 5C$ 98 1.24 44 -116f -205 32
4. Fixed Assets, Work in Progress., etc. 45 4) 90 112 33 -1042 -1843/ +365. Inveintories 4 6 8 12 11 - 12 - 21 - 4
C. Total Investment in Fixed Assets, etc. (1+2F4) 149 190 205 259 311 355 346 372D. Total Investment in Inventories (3+5) 4o 43 48 58 42 43 156 20()E. TOTAkL (C+D or A+B) 23 2 -37 5 T77 7 77
Ratios
Inventories as % of Total Annalal Investment (D ii E) 21 18 1.9 18 12 11 31 35Operating Ccncernas/ as % of Total (A 1 E) 74 79 61 61 88 129 141 94
1/;t' Only this part of total capital formation is captured in the ASI siurvey.21 small part of this increase (about Rs 20 Crores) is accounted for by the increased holdings of trading corporatiorns such as the S.T.C..When undertakings undier construction become operating concerns, the corresponding assets are transferred from line B4 to line Al;
this accounts for the negative figLres in B4.
Source: Table ]L8
TABLE 17
CUMULATT IV EETND1 YPIHflTTTUV REN rXYED A'C-SVE A-n T ETORTvES nOF PTTUT Tr ETEP!)RTSECS
Years Ending March 31(Rs Crores)
1960u 1961. 1962c 1963 196U4 1965) 1966 L967 1°6
A. Hindustan Steel Ltd.Fixed Assets at Cost 350 468 572 635 6614 725 775 865 997+ Work in Progress 90 52 24 31 67 108 154 134 81
Coverage: Includes all industrial and commercial concerns submitting reports to Parliament, except promotionaland developmental undertakings, and financial institutions. Included therefore are IA(, Air India,etc., but the Oil ancd Natural Gas Commission, ICICI etc., are excluded, as are State Governmententeorprises And Tan tmentannl ,,nAcr±nina such, as C1ta+ranAn, Locomotive Wo-rk- Nmew enterpri-es
are added each year, and others are changed to higher categories.
Source: Balance sheets of industrial concerns, as published in "Annual Reports on the Workings of Indus-trial and Commercial Undertakings of the Central Government," Ministry of Finance - Bureau ofPublic Enterprisses, 1960/61 to 1067/68.
EXPENEITUIRE ON FIYED ASSETS AND INVENTORIES OF PUBLIC SECTOR ENTERPRIISES
TOTAL 973 1,:133 l,1407 1,780 2,037 2,415 2,841 3,333
Note: This breakdown of investment in industr-y consists of teuity participations, plus loans disbursed from cr throughthe Centra:l and State GoernPnment-q- nn Mar-th 3L; 1966 the Cent:ral G3overnment accounted. for over 95% of suchtotal investment. Excluded from the totals are workin;g capital (generally financed by the State Blank of Indiai)and investTrient financed by the enterprises out of thei:r cwrn net ea:rnings (generally negligible). The figuresare thus s:Ligh tly :Lower than thne comprehensive investment figures in Table 17.
Source: Annual Reports on1 the Workings of Industrial and Coimnercial Undertakings of the Cent.ral Government, 1960)/61tlo 1967/68, ]3ureau of Public Enterpr:ises, Ministry of Finance.
TABLE 20
ANNUAL GOVERNMENT INVESTMENT IN PUBLIC SECTOR I _STRY. BY BRAI'CH OF INDU'STRY
TOTAL 973 1,133 1,407 1,780 2,037 2,,415 2, 841 3,333
-/ Indian Refineries Ltd.2 "lHindustai Aircraft Ltd.I/- ,46 others in March, 1967; 22 others in March, 1961.,,,Fluctuations in this residuLal indicate that some of these data are unreliable.2/Some hitherto unrecorded foreign loans are included for the first time; the actual increase in loans ancd equity wtas6 ,Rs 58 crores (p. 177, 1967/'68 B.P.E. Annual Report).!Partly due to increasing stocks, partly to reclassification of accoluts, and partly just inexpLicable.
Note: This brecakdow of investment in trv nonsists of equity participations and loans disbursed from theCentral and State Governnents and from private parties both local and foreign. (On March :31, 1966 the CentraiGovernment accounted for over 95% of total investment. Excluded from the totals are wurk:ing capital(generally financed by the State Bankl of' India) and investment financed by the enterprises out of their ownnet earnings (generall]y negligible).
Source: Arnual Reports on the Workings of Industrial and Commercial lUndertakinigs of the Central Government, 1960/61to 1967/68, Bureau of PTiblic Enterprises, Ministry of Finance.
TABLE 22
GOVRNMENT INVE3TMENT IN PRINCIPAL CONCERNS EACH YEAR
Note: This breakdiown of investment in industry consists of equity participations, plus loans from all sources dLs-buzrsed from or through the Central and State Governments. On March 31, 15966 the Central Government accoulntedfor ovier 915% of such total investment. Excluded from the totals are working capital (generally financed bythe State Bank of India) and investment financed by the enterprises out of their own rket earniLngs (generallynegligible). Possible year-to-year changes make the classification of doubtful reliability.
Source: Annual Reports on the Workings oL Industrial and Commercial Undertakings of the Central Government, 1960/61to 1967/68, Bureau of PRblic Enterprises, Ministry of Finance.
TABLE 214
INDIA
ANNUAL GOVERNM:ENT INVEOSTMENT IN PUIBLIC' SECTOR ENTERPRISES BY TYPE OF ASSE'T
Sour-ce: Reserve Bank Df India, Department of Statistics; "Finances of Government Companies" published inBBI Bulletin, var:Lous issujes.
Coveage.: Aims to cover ope:rating, non-financial., non-promotiona'l companies wholly or mainly owneid by theCentral or State Governments. Newly registered companies aire usually included vtL1 4 afiter so-Mdelay. Coverage of companiies is measured by paid-up capitaLl. Major omissions are HSL before1963-64, Neyveli :Lign:Lte Corp. Ltd. betfore 1966-67 and Fertiliser 0orp. of India before! 1962-63.
1/ Not consistent with Tables 13 - :24. See Volsue II, Chapter VII.
PABLJ 26
INDICES OF UNDERUTILIZATION OF CAkPACI[TY B3Y IIDUSTRY GROUP (1955-64)
Number of Index of :Per Cent UnderutilizationIndustry Grroup Industries -…-
Note: (+) shows production exceelding the capacity estimated for a particular "working period" (nuwber ofdays and number of shifts).
Source: NCAER, "Underutilization of industrial capacityll 1966. Based on a very, small sampLe. Thisestimate, which tends to ovearstate utilization, is not comparable with Table 27.
TABLE 27
ESTIMATED UNUTILI2ED CAPACITY IN BROADGROUPS OF ITDUSTRIES DURING 1967-65-
Value GrowthAdded in Index,1963 in 1963 to UnutilizyPs Grores 1967/68 aranacitT
- Shows the percent unutilized capacity based on value addeddata.
Source: "Utilization of Industrial Canacitv in Tndia,1967-68," by Raghunath K. Koti, Gokhale Institute Mimeo-granh Series No. 9. Not consistent writh Table 26.
TABL: 28
nT.C fTPTT 1TnM nF PRnnTTrT-'ArTnRTW_ arrnRnTNG TOTEE REASONS FOR UNUTILIZED CAPACITY DURING 1967-68
No4. of
Reasons for Unutilized Product-Capacity ract, 4U A L
Inadequate Demand 262 32.6
Inadequate Demand as One Among'Other' Reasons 63 7.8
Shiortage of QpA]" i39 17.3
Shortage of Raw Materials asOne Among 'Other' Reasons 39 4.9
Inadequate Demand and Shortageof Rax! Materials 31 3.9
1/'Other' Reasons-' 117 14.6
No Reasons Given 152 18.9
TOTAL 803 100.0
- Important among 'other' reasons are labour trouble (23),technical difficulties (23), inadequate finance (13).power shortage (11) and development stage (11).
Source: "Utilization of Industrial Capacity in India,1967-68." by Raghunath 'K. Koti; rnkhnlp TnsQt.itute Mim'-graph Series No. 9.
20. Transport Equipment Industry 3 8 7 2 2021. Miscellaneous 2 9 11 - 22
TOTAL 78 185 135 119 517
% 15 36 26 23 100
Note: 1 = Not Mentioned2 = Helpful3 = Not Helpful14 = Not Applicable5 = Total
Source: "Ultilization of Industrial Capacity in India,1967-68," by RFaghunath K. Koti, Gokhale Institute Mimeo-graph Series No. 9. Based on survey results.
TABLE 30
SOURCES AND USES OF FUNDS7T-PMU "TMIr^ 0 fn PTUAV &W I TITrWDT r=M .fA WT
Nf)t.p' t Th; ic t.nqhl P_ J c, 'hs n a.-n PlRT cm?mP-arc AT% rmesnYR%!r% fr + 1nncrw4--_5 L. t'>l I
suggested blow-up factors. Data have not been adjusted to conform with themethodology of Chanter VT of Volume II, so are not conRistent. for arampAle. withother tables.
TABLE 31
SOURCES OF FINANCE OF PROJECT COSTOF COMPANIES WHICH ISSUED
CAPITAL THROUGH PROSPECTUSES DURING 1966-67(amount in Rs. lakhs)
IMC' 16.7 1.8 52.2 44.7 68.9 46.5 1,3.4 4.'3 LL.4 8.6 24.8 13.5 NA NA NA NIL NA NAGrrand total OT .2 271.1 139.2 92.o 77 33 =9 T 77 -131 707 177 C 27.7 92; W87 ; 7 S i-T-7
Sources RBIs Report oni Currency and `inance, 15967-68
INDIA: AMOUNT OF LOANS SANCTIONED AND DISBURSEDBY DEVELOPMENT FINIANICE COMPANIES
NCOTE: Strict comparabilit-y is lost because until 19f.5 the data are on an annual basis but thereafter are on a fiscalyear basis. Series I comprises IFCI, ICICI and SFCs 3. Eeries 11 includes IDBI and is on a fiscal year basis.
SOURCES: L.C. Gupta, The Changing Structuref Industrial Financ- in India, 1Q`90, andR5I, Report or. Currency and Fi-ance, I9S7- -.
Source: Reserve Bank of India, Bul1tetin,, June 1967, and "Cu-trrency and Finance, :L967/68."
Note: Capital raised in a particular year relates to conisents received in tlhat year as well as in previous years.Bonus shares are excluded.
The data on capital raised reflect only those companies which so reported to the Registrars of Companies,hence it is not fuiLly comprehensive. Private limited co-mpanies, lbanks, insurance companies and providentsocieties were exempted from capital issues controDl in November 1966. Data for 1966 and 1967 is thusnot fully comp)arable.
TABLI, 36
CAPITAL ISSUED IROUGH PROSPESCTUSES BY NON-GOVERNMENT,NON-FINANCIAL, PUBLIC LIMITED COMPANIES
(in Rs 1Lkhs'
Actual Issues Amount of which,, Amount Amount AmountNew dOld- 2/ Private 1/ Offered 3/ Amount 4/ Subscribed Taken up by Left
C,orNpanies Corpanies TotaL- Subs riptioncr- to Pablic- Underwritrte-r by Public Underwriter Unsubscribed-T ) -r27' 773) -(4)~~ --~(6) -'f 7,17 -775: (-79)
(1+2 or4+'1)
1961-62 933 1706 2639 1031 1508 :1360 NA NA Ni
1962-63 16244 4267' 591L 3406 2.505 2976 NA NA NA
196 3-64 31.37 2345' 5486 2579 21907 2503 NA NA IL
Sources: 1960/61 to 1965/66 from RBI survey of 1,333 companies. S;ubsequent years' data are linked to the B3I series, usingtrends deduced from three other surveys:
a) 813 companies, by the Financial Etpress, February 19, 1968.b) 25L companies, by the Econormic Times, July 2:2, 1968c) 167 companies, by the Financial Express, July 13, 1969.
The absolute values given by these siurveys differ from the REII results - usually the smaller the samnple, the higherthe ratios - presumably because the larger and more profitable companies aLre easier to sample first. Trends are,however, generaLlly consistenat.
Definitions: 'Gross Profit' is after depreciation but before tax, interest and managing agents' remunerations.'Net Profit' is after depreciation and after taxj, interest and mainaging agents' remunerations.'Profit Bef'ore Tax' is gross prcfit minus interest.'Capital Employed' is net fixed assets Dlus inventories and other mise11hneo,q it
'Neat Worth' is paid-up capital plus reserves + surpltus.
TA RL ' V
PRIVATE SECTOR PROFITA3ILITY RATIOS BY SIZE OF COMPANY;
Gross Profits Gross Profits Profits After Profits RetainedNumber as Percentage as Pe:rcentage Tax as Percen- as Percentage of
Size-Group of of Sales of Total Capi- tage of Net Profits Before(Paid-t) CAipita1) Companies tal E:mployed Worth T'ax
Source: Bureau of ]Public Enterprises - Annual Reports. Includes profits of trading and other non-manufacturiangenterprises, and is thus not consistent with Table 42 .
* = not in operation- neg:Ligible
TABLE 42
UBLIC ;SECTOR INDUSTRY - PROFITABILITY RkTIOS )
1960/61 L961/62 1962/63 _ 1963/64 L964/65 1965/66 1966/67 L967/c8ai c i- c a b c a b e c -(et
Number of Companiies 45 48 5 + L2 = 47 5 +42 47 6 62 =68 8 + 65 73 I + 65; 73 --
a = Giant companies with paid-up capital of over Rs. 20 crores.b = Other companiesc = A11 companiesIn 1966/67 Giant companies accounted for 80% of total assets of companies surveyed.
Source: EReserve Bankc of India surveys of government companies. The RBI does ncot include companies until they are faiLrly iwell established - for exampleIEL does not appear here until 1962/63 - so these data give a generally favarable picture of the returns from public sector enterprises. The RBIsource has been uLsed instead of Bureau of Public Enterprises data far these ratios also because ncn-manufacturing concerns are excluded fromi'BI data. :L967/68 is an estimate using BPE data to project the series.
Definition: 'Gross Profit' is after depreciation but befare tax, interest and managing agents' remuneration.'Net Profit' is after depreciation and aLfter tax, interest and managing agents' remuneration.'CapitaL Employed' is net fixed assets plus inventories and other miscellaneous assets.'Net Worth' is paid-up capital plus resErves and surplus.
_ rlfl I _ITDJAU, 43
INTERNATIONAL FRICE COMPARISONS
In US $
C cmnodit Unit India U.S. Japa
Rice Metric ton 127.21 191.40 201.6o0W4heat Metric ton 111.01 6i.40a 77.64Sugar Metric ton 206.86 286.00 79.04L6
Coal coking Metric ton 4.84 26.75 32.96noncoking Metric ton 4.97 11.86 12.01
Pig iron Metric ton 48.69 66.13 9S.07Aluminum sheets Metric ton N.Q. 704.00 715,57Aluminum circles Metric ton 947.37 814.00/1 8L4.16Zinc ingots Metric ton 427.63 415.80 276.95
Cotton sheeting (unbleached) Meter 0.18 0.37 0.28Longcloth (unbleached) " 0.17 0.35/2 0.28All wool heavy weight worsted " 7.04 4.46 1.73
Mild steel plates Metric ton 128.82 135.74L7 86.89Bars and rods - 14 mm and below Metric ton 106.58 150.7077 95.65Structurals, bearing plates
and sleeper bars Metric ton 111.71 150.o04 125.15
Caustic soda Metric ton 134.87 62.72 31.28Sodium carbonate Metric ton 73.03 38.08 40.58Sulphuric acid Metric ton 43.05 64.76 66.75Nitric acid Metric ton 315.79 n.a. 114.51
Loom - plain cotton Each 306.58 n.a. 897.17Ring spinning frame Each 8,059.7h 10,206.23 8,134.50Agricultural tractor - 35 BHP Each 2,781.58 2,294.93 n.a.
Tires - average price fortruck tire Each 41.64 50.18 n.a4
Rubber shoes Pair 0.89 - 1.50/3
Note: i. Indian domestic prices, are quoted on ex-factory basis, exceptingthose of agricultural commodities, where a wPigihted average was cal-culated for main producing regions. US and Japanese prices areexDort quotations, f.o.b. ports of departure, excent when statedotherwise.
ii. All prices apply to i9o8; they were converted into the uS dollarsat the official exchange rate.
iii. N.Q. = Ncot quotedn.a. = Not available
Table 43: international Price Compaisons (Page 2)
Footnotes:
/1 Bars and rods
2 Cotton drill, twM. and sateen
/3 Korean (rubber hunting boots)
/4 Thailand price
a Canadian price $66.70
/6 World price $44/MT
/7 Domestic prices, ex-factory
Source: Index NumriDer of Whnolesale Prices in India (Revised Series)for weeks ended December 14 & 21, 1968, Office of the Economic
X,UV 5 tt:._ '_1 -4 Us1U '_- '. - A. _2 V1 TX---II B l -- U n _ _ I A-r-PA4uv1ser, VUJ_jL.L~U.U-Y U±L .11ULWUbL-.dLL LP_V",.LVjAILWAiLU aIU VU1LP.Ujd. A.LJLaLAi4-0
Government of India, New Delhi; US Exports, Schedule B Comaodity andCountry, US Departwent of Ca-rmnerce, DLW-eau of the CenSus, rT 4h/January 1969; Japan Export & Imports, Cammodity by Country, JapanTrade Association, October 1968.
Fsosoto Sitoatiso of aa1 sr.t~ k4mate1 'hs~ iWe io Indi,Clasafif .d -s ae .s of datW My 16 196
(oil data, except aqployxent, in lakhss of ruopeea)
Sales ~19646 Sales 1965/66 Net assets Net worth Gross profit Net profit h4upicyens ij,65
Source Coefficients for largest companies calculated from Table144;coefficients for "all companies" calculated from the Reserve Bank of IndiaFinancial and Economic Review, November 1967. "All Companies" include only public limited companies, while "Largest Comrpanies"include often Government-owned industrial enterprises.
TAILA 46
Concentration Ratios and Related lti'iciency Coefficients ,xf Irdiion Industjy (1965/66)
Share of 4 Ls.rgest Cotnies in Total Irnittry in, /1 _ Eificiezry CoeffiLcients (in Rs pe Loy I Lbor or catital)Productivity of labor 'Level of Tecsnolo3" otivlty of Capital
Sales Net fixed assets lEPlo,noent (Outpt in Rs per oeled) LNet assets in Rs per on_ loyed) J Output per 1,()00 Rs Of Cap.)Largest 13 n argesat LrgestAJEnterprises Compariies EnterprLsee Cpanie hterprisee Companies
Source: This table was calculated from data, containied in Table 44 and 45,andin the Reserve Bank of India Monthly Bulletins.
The following Table 47 ie derived to shoe, that the largast companies are more efficient users of production factors than are all companies taken together.
Soorco: Competed fro5 CoMpamp resorts and from tie Fortune rageolso list of tie largest US enid international corporations.
1/ A11 quotients are the ratio of tbe fig.re or. the Indias company (salon. ass0t0 or profits) and the fore.ign company.
TABLE L8
o:usonr of Scale to. India" Snuoty
DESIRABLE AND ACi'AL SCALE CF PfUJCTION COST' BrHAVIOUR AS PINCTION OF SCALE OF PRCDDJCTIONTo,tal Actual Ulili,.atiocn Number of- Tectage fall
Minisom prudoctiurc -capacities units of Capacity in omit costs Cost rouge Year ofProduct aLit Flant Si2! (967/6S) i productio P'roduct Unit r .sge over the ra:g.. in '000 $ ref-erece
Note: This tLblo has bies -porutec from v-rious sources. Gi..o their dier-sity, the above aomporisce con reflect only the order of magritudesand ohosold lead to brood and tentativ- conoiusiono only.
Source: .r. F. H. Potil: 'Ecosomce of Scale.: an engineering approach", mimeo, Unisverity of Bombay; V. GOpta: "ECot Functions Conceniration ani barriers of entry insa,sfacturiog industiles of Indiia, Journal of Induotrial Eco-omics, 196d; YeTog-Her Y.h: :Eossosles of Scale for IC mian Mia af-turing Tdiustries", The Scoo-ometricArnul of the ]ondian oosoeni .Joorol, lol. XIV No. 2:H. C. oss-san: `Pundamstals of Coet Ein .seering in tUe Cheeica1 Irdus'try", Chapoan & Ball, Lo.los 196.;C. H. Chilten: "Si. Te:eth Factor, appliea to complete plant coot eignceortug So poc-ss indu:itr_e"' .cOr= Hill Book Co., Nea York, 1960; F. T. Moors: Economies of Scale:Sose statistic:1 evide:ce" QJE, May 1959; IDerd N., Schooler E.W., Vietoreisc T: "Indo-trial Complex Anlysis and Regional Develonent: MIT Pess an John Wil.ey & Soss,Nea YTok 1959; Born D. "The Structure ot British Indostry" Vol. I & E], C-b,r:1ce Unielorsity Press, Londsn 1958: Bain J. S. Barriers to NeB CEepetition' Harvard U.wersity Press,125d; FK. K. . .ti: "Utol:isti-o of IG:duotsdl CaPacity in IDdio, 19b7-6d8 cokhle DI-sb tote of Politics and cwomd-s. Poona, 1:6:; Monthly Statistics of the Froduct:,o of SelectedI,dustries of India for Serterber and October 1967, Centrol Statitica,l Or.anilation, Calcutta, 196d: Report 1967-68 by the Minlsost of Industrial Oeelopemot and Co.opay AIffirs,005, NeB UEcho 196d.
2 /1 Annoal prodaction was nii tl:r:. . As so doa- conc-rnle temperatu:r .s pr.srurs -r giove, the Miosioon assoud cornal ccnditions (ic tuan) of 25 kg/cs cod 27 c, at hi-h the
converton fact.or bcoores 5 m-' = .'S.'; it.;.
/2 Annual roducti.o -J3,c:) thoas- . Is co-:-tli-_c .: in ootnote /I the cos-orcian factor is ! - I 201 kg.
TABLE 49
BENIEFITS FRM USING CAPITAL INTilSIVB TiCHNiQUis (i165/6c)
ocuct'Lv.-Lty of Labor "Level of Technology' Cost benefit result from using(output in Rs per cam employed) (Net akssets in Rs per oeE! employed) capital-intensive Leahniquez
Value added Net gain inLargest All in outlut radditional v.a. Largest All Annual
M. Metals and Engineering Products 28,920 16,881 12,039 45.1 5,429 25,512 8,420 17,092 1,709 3,720
Source: Table 46
1/ Share of the value added in output is higher if calculated from the RBI sources than when calcuLated from the ASI statistics. As data, for tris table are Mainl;y derivred from theRBI sources, we thought that it will be more appropriate to use also this source for the calculation of the value aLdded. This value ELdded is calcuilated by subtracting frozm thevalue of output the value of rawr materials and components, consumed in the production and is therefore particularJ.y appropriate for the calculation of ret gains from, higherproductivity. Results for tobacco, and to arn extert basic metals, are not as meaningful as the rest because the 'largest enterprises' comprise most of the industry.
.ABLE 50
G~ain, or 100s300 due to Differential. Capi-tal and Labor Gusto in Indian and Foreig. n ltorprises, 1966.
Animal Coo i nnua- Cost Factor Shore Cost Differences (in US$) per $3,300o: Eat .4sceco ot Net, Assets Annual iA-l Cos,t of labor Distribistion between fines in other nsrtries and(L,feti.eo per $1330X dage per Wage per $1,330 (in per Indian Fines
ProductLion Soc Assets 13~ years) prochaction Emsployee Bill Procuc ti on $1,030 Find) _______________
930S$U$ w U55 Eq_- iomen; t, 1U$ 115O U$) ('us$) Conital Labor Capital. Labor~ Net anrls
fPm Col S, from Cal 8I. Large-Siec Indus,trial Enterprises
CABLE 50, Gains or Losses duie to Differential Canital and Labor Costs in Indian ann Foreig _Enterprises, !66.
Annual Cost Factor Share Cost Differences (in US$) per $1,000of Net Assets Annual Annual Cost of Labor Distribution between firms in otheir countries andper $1,000 Wage per Wage per $l,00C (in % Fer Indian Firms
Production Net Assets production Employee Bill Production $1,000 Prod.)ooo US$ 000 uS$ (uS$) 1/ Emloyment (Us$) (0oo us$) 2/ (us$) 3/ Ca ital Labor 4/ !]Wlf or 'a MZo e
1/ Based on ten-years, purchase, i.e., column (2) divided by colnumn (1) and multiplied by 100.2/ (4) x (5) divIded by 1000.3/ (6) divided by (1) anid multiplied by 1000.7/ Percentage shaire of columns (3) and (7) is this sum.
Souu-ce: Iridian Companies' reports (Top 200 companies), US Company reports (Fortune magazine - top 500 enterprises), Industrial Companies outs>de the US(Fortune Magazinie - Top 200 eniterprises); Ainual publications of the International Labor Organization, 1965 Annua.l Survey of Industriesby the C'iO, Calc utta.
Note¢: The top entry in each cluister of comparisons is always an Indian company.
marhiveryanJ equipmentto Ltota hook Talon of 'San1 o Share of A.-I0 Share ofvia of b Share of Shore of o Loe of ornoctin moohio-e -ato isloe wage per Share of idi ,eot
capital an.tet first ohl.-1 Is.anageme-t pr'odoc- pe pe-on,: per aeraoo oddcd is odded uployce deprpct-- Lectricity tfaxe- in Gros-(before dc- o t.otal in total ain per ,directly Pi'ed cpital diectly total -ner in direct tion in value co--rded total valoe profit
nreciauojn. nsol?ebenlt emoloyrnev t e34yee ner e__ _ si oynd oroodction nplyon proBuction oc.p P pee n :tpout rate
d. GoTfJMGiE:R OAJDI IS2JITR2STE
I. rood lmuetny - vegetable & .an.aI oiL: & lats
a. Ihsia: lrdepeident enterpr:Lecvpocity 25,000t of hydrogenated cegetableoil un three shifts. ota.l .s.et. areP.. 20 l ihuni enploys 33'1 - Founded19O /1 50.6, /7 /17 60.7 5.1 16,645 31,976 d00 /13 37z2 5.6 (11.2) 1,179 283 7.7 16,054 5B3
b. Yugoslavia: Singin e-tnrprlas oapaclity1,50O torn refined oil on three shLftserplnys 117- Foanmled 1946 /2 45. ! / 50.4 L4.5 /4 9,053 10,592 . 3,312 1,750 15.3 1,382 533 3,393 ' 9/3 7-9/10
c. Yu.goslavia: SingL establish..ent p,uduoingop to 6,003 r2 of plyw-od and vees-e onpO&ttal 3 hnifte. msopleyn )58; foornnddin 1958. /2 49.2 /3 43.2 15.1 Ah 1,760 2,072 2,460 1,425 Lb.3 78O 282 i..4 2,474 0.5 /8 20.0 /10
L. Leather arnd Leather Products
a. India: Branch of a 4 establishment enter-priLe; nnual crapacity in 2 nUll-eupairs of leather shoes plus cannonother leather goods on partiol 3 silfteplsn tanning copacLty of 6(3,ooo ihLdenon 3 call shdfto.
Total au-ntn of all
b ir-nch it,. 135. This brhnch has3,'526 employees. Founded in 1d81 ':i 71.] /7 /13 96.6 3.1 1,117 1,202 L1O 87 30.0 (31.h) 336 251 10.2 659 2'.0 3. /5
b. France: One, etabl_sLohent octerprine.neisslize bAx s} t ,st ann i
c. -- p; slOhi, V : SIngle crtepri so afici ann-r,o:ce 2.5,0(0 s
2o- toaclo lesther.
Unlnoc 122 ecplovye- c on o- - i'tFo.naIod in 101:7. '. o -. 1 ". 21.. '2 , i ,,L 2,112 l,e6l: Ii.] 0'' i7 i 1 .i 2,572 ] d /8 d.3 /10
TABLE 51: Enoe4c and lThmabril Pro-iles of lIonei Iiaiorial Sntorpitso
Share of1m achi neryand eqoirreenttn total book VaLue of 7a:se of Share of JLna-L Share of
oalu of Share of Share of alue of prd-ction enchiee value- Value wage per Share of in.di-t
capital. ssets first shifts n-aag-.ne podac- per peroon Per person addec in added ployee doprecia- Electricity taxes in Gros
(before do- in total in total iLon per directly Fimed oapital di:ectLy total * per in dirent tLon valulte esnawd total value profit
DrecialtiOn eo,pioysuent eployment apppyp eo,ioyecl p5trowloyee emioynd orodooctino eaio'p pyi4ono ooutpu,t e.rh ff!en i ratefl T~~~~~~~~~ V~~~~~ -~~~~~ T 1 U ;fl~~~~~~~~~~~~~~~~~~~~ U ~EEVLl ULj21 Ket, If-t
'. Ihabber orad babber Products
a. tdia: Or, e rsstablehnt enterprise;-emual c.pacity of 400,000 pie.ee
of tyres & tbke an three ehLfts.Total assets of ELs. 30 tsilLin and1,118 epinpees. Founded 1952 /1 77.4 52..h 12.7 7,484 15,96d 3,215 2,4a9 24.9 (39.9) 1,861 333 4.2 /i6 9,218 L,8 12.7
b. ]..rael: Independent establiehkent;napanity 7,000 tone of tyre andS,oo ten of takes on 3 shifts. Totalassets IL 21 hifLion & 566 eploy-et.1'unded 1.952 /1 74.5 /13 55.h 4.1 8,626 12,206 8,496 6,331 35.3 3,0.48 2,212 4.3 /16 Ll,9i1 - 1.2
c. Tugusla.a: EgSing] enterprise, aemtlcapacity is 6,0X0 tans of various rubberprodnets on 3 shifts 903 tpily.es.t'o-nded 1.925. /2 56.1 /3 5.3.8 18.2 A 4,600 5,621 2,630 1,804 28.8 1,325 583 1.6 10,350 21,5 /8 19.b 0
6. CheulooeL Indstlry - paints, -arsishs,
a. i .raLa - Major pradote no rpwtingu-it , paints a, varnishes ikestatlLdn:apacity: 1,700-2 ,boo tans with nonohift - pomnaded 1940 /1 42.9 10().0 4.6 2,516 3,537 347 209 19.0 477 1631 o.8 773 -
b. !sagoelaeia - XJaor preduote of re-
Porting sunittenasrls, lI-cqurs andnl-rs; i,ntallws capacity 22,000mans with three shifts. Fouttdd1L920 /2 61.5 Zi 43.7 27.7 /A 10,312 16,269 3,239 2,758 26.2 2,698 592 1.1 k,f - 16.8
7. Match Industs
a. India , A"'l onpacity of reporting-tait 6,200,000 gross boxes (50 atiton
sanh) on tre shifts . It is une of 8branches of large establishment;f,ounded ]L930 /1 39.6 59.2 4.] 1,511 1,785 288 135 57.2 (60.5) d64 4(1o 2.7 1,09S 7.7 27.1 L£
h. Israe.l I:ntaledl capaCitJ of reportinguidt is 1.6,000 packs (7,200 pci. *aoh)of bus -stohee pl.U 230 pa*ts (10,000;pt. each) of boob: atnhss On one shift
a. India, An,..l oapocity of reportingunit is 600,000 tosn of Tydr-slic
-:nt on three shifts, This is atranch of' lasrger hbilding naterinl.enterprise fsunded in 1923 /1 53.8 /7 41. . 2.5 5,334 6,077 3,402 2,0d7 45.0 (65.9) 2,400 341. 8.8 37,383 38.0 21.4
b. Franc,: Adnual ospacity of reporting,oit is (00,000 taos of cenent anpartial, three shift operation. This is anew brooch of a 13-establ±sh.ent enter-prise fondeod in 1962 /1 61.7 dl.9 9.c bCa,23 72,LJ2 179,61d dd,322 44..4 (55.7) 17,d99 3,720 32.9 271,752 2C.3 0.3
c. Israel, is,oal installed capacity is 85o,-100t -ons of hldr2uliccstent cncontina-us threeshift operation. An indepeodest enterpriseSith ten plants, one founded in 1725, the
other in 1953 /1 od.l 751.9 1.5 12,271 22,5d3 .,1l31 59,790 44.9 (75.6) 5,516 2,4u.S 7.9 129,712 55.7 11.5
T_rLg 5L Ecsotic asd 7eohno-al Pr-ofile of Indian Icd-lotrial E3t-rori-c
Share ofmachineryand eqdipeentin total sock VaLue of Valuc of Share a: Anual Share of
value of Share of Sbare of 'Value of prodactios machines -aLue Va.ue .age per Share of indir sot
capital assets first shifts saagesent produc- per person per person added in added ieployeo depreoia- SiLetriotty taxes, to, .rons
(before de- in total ic to-tal tio. per directly Fined capital directly totaL per i.n direct tioo tulsa co-ss d total nalue profit
8 reciatlos) !-dt naprpnt p zLa yd 52- pljv:e e d nroduottLoo M e -rodoticon of oPp_ p.,er n e, p i w ratt
dii. Bri.k$i.liea. glaes & gaoes products
a. IndkLa: Older of 2 branch enterprioecapacity 6,:00 tcae of fire bricke
b. Tag slavia: Single ostarprise,capanity 135,000 tonm of raw re-fractory olay 35,000 taon of bakedclay and 67,000 tom, of fire-oWybrio ke on 3 shifts; loeys 1,885,fo,nded 1950 /2 48.3 /3 48.5 12.3 /4 1,979 2,257 2,3196 1,321 44.7 (47.6) 883 368 3.7 3,756 5.1 i' 22.5 /Ac
e. Yugiielasia. Single enterprism tickprn,hed s up to 58,600 tone af aebthee-cmn,nt Slabe & pipes on 3 abifts;inpioye 590, foitedl 1919 /2 74.9 /3 48.3 9.0 /4 4,816 5,292 3,326 2,739 27.6 (3i.
6) 1,331 546 3.S5 4,969 9.7 '/8 13.8 as
9. Basic metal
9i. Iron foundries
a. India: Rposrting nti is irfink steelf-sur with additiolen .nta&l orkieg& aesably ietni.s for praduelng ccrusrhers & aleetrie mtors (4.400 ad400 r-pti-ly) sith two shift.. Anindepndnt iestablielaent ftirntd 1866 /L 38.3 88.2 4.0 965 1,210 -di 374 27.9 (29.3) 270 270 3.1 0.0. 1.4 10.9
b. Israel, Anmas capacity of reportingWill is I 14-1S titan of rarioascast iron preducts (ca l0,oCO tons) anpartial thr,a shift spratico.. Inde-pendent establi.heknet fonded in 1935. 66.7 95.2 6.5 5,352 6,645 6,358 5,065 56.6 3,028 2,857 4.3 54,393 - 3.9
9ii. Iron castings
a. India: Repartirg undt speciali..e ir ironcooling for acbhins and pets; annuacapacity is Re. S illien or- partial twoshif't operotioc; one e-tablishent enter-priae;founded in 1946 /1 07.0 ,.6. 2.3 2,42_ ^,8C, -,4 ''1 '." r 5 a (am O( I , . 566 2.0 14.2
b. Japan: Major product of reporting fir- iscas.ing of inohine Soda (a-raal capacitycbhet 2,00D tmo) vith one shift. I-oe-psncdet one enterprise esoahliohest,
a. India, Reprting unLts anna'tl aeocityis 1,800 t of fabritoated etowtar.ifor building.s ad & ret ted.- Ltowm- ero 3 ehift.. Brerto of 9-etablieluant entsaerpise f.uadd to
TABLE 51: Economic aid Technical Profiles or itoitac louotrtl_*t.3risO
lhitre ofmac:hineryanti eqduipmntin total b-ok Itne ot o'- ur ro!' Ab-1 Shlare of-aiue of share ol Shace o' fale o' prtdcct lion - -achie ao Valon cage per Sbare of iod-reot
capital assets fir-t hift- oangetcooi protr- ne- cacao-r- per pnrco - ddod in atddid oployee doprecia- -lecor,ibty taxes in Goons
(hefno- de- in total so total Li0:- ncr - cL-LUy Fixor capita! di r.cl ty otal a ?er n 0arect tion -aLue nnsn-d tatal oalan pofit
p r = -m-ng5ni erpLcW3ct 9! e atoellyad per 066Ac re ECEjClotn rpoa produoCLnn f ruput pereroloyra ofoupt -r
b. Is'roel: Capcity of r-portirg c.It isIL 2 llli-ort worth of hay bailer-,goaio drills, Proit grlading .chiossetc. on oPe ohift.Eodape.dest establish-meni fo-ideci 1946; assets IL 1.5 hilLion,la employe-e /1 60.2 100.0 31.7 1 f,64ho 1.7,053 2,530 2,232 22.2 2,587 1,642 6.2 2,439 - 5.2
J. Japrm: Capacity of reporting cit 100,000pieces powr- tillers, sprayers, bush ocuterson one shift. Isdependent establihrsent with190 emplysee and assets i2,210 ilLion /L 52.4 100.0 7.3 13,89'7 .11,7d6 2,567 2,983 23.0 3,190 1,4;16 1.8 2,1o49 0.4 7.0
ll. Irrigatio Eui sent (CPcSp)
a. India: Reporting chit pradwoes anrsally opto 1,500 oSrifug1L pasps wcrth about ft.1.2 Million on partial two shifts. Ideepe-dent eatblishseot; total assets Re. 1.39rhillon; esployee; 152; founded 1946 /1 45.3 88.1 12.5 7313 958 432 255 43.5 321 180 3.7 J58 _ 1..8
b. Jap-n: Repasting upitu capaoity is abcut12,00io pesMps of canasta types wrth 12,000rdllion on one shift. lzicepeedent enter-prIse established 1950 total assets i2,300eillion & 479 sqs1scsss. 30.2 100.0 5.6 9,362 18,6.647 4,r23 2,898 43.1 4,042 1,561 4.7 1,261 - 16.0
a. rc.iia. Indo-dn-ont -olblisiceint,capacity in Rs. 1.1 rullion ofil-f:l-n-s,oa-r loIns, arotu]torat
napiLoynontc. coops 3. ocecioJiocinocltine oo:L cactiofg. Asst c Rr 2-IrilLion, 2_,31 -1,l,eys fo-'iez IL '15 6J.2 'II 71' 1.' t : l.a- '.' .1 22.2 5 2h h. 1,7$3 5.0 10.0
,TABLE 51: 4ooo,c are 0ocbstcal )rofila oi :'i.s vvas,r)a) rt _
b>are ofeachicero
Is total book tllesc:f Jalue cI Share of be.na Shore ofvolue oif S-,Ce a. Share of Ju1e of productfor- achbirot value 'a.We clage er Shore o' indireccapital ossets fi,-st ehif vs -nngeee-t proaco- per per-on p50 person aided) cc aiFec employer Uspracia- t1rctrisi ty ases Is Oroo-(before do- ib total in total tion per iirertly Fixed capital directly totol * pen !o airot. tire val-o ce -sed total voice profitereototlac)_ ol3D Omet - aev..la.ceet amloee ~~em p per orpLlcyee e_ep!ye proucotioc p,cs o>rosostiocS of rutpeut per employee sLof uipst ralts
a. Prance: lndependontl entahlichneot,oapasity 63,j)5r die.,f eiei-nc on o-1shiv. Capital etook Fre. 14 million
6 5) esplypees orgo-od ls 1 961 -sbads of old f-otog'. /2 53.7 100.0 11.9 3v,d66 d6,407 3,640 4,930 22.7 (38.h) 7,1370 ;5,015 /77 2.9 419 20.5 J,.6
Tcgo-slaia.: igle enterprise,;capacity11,001) deie]. engines 7,30 tractors& 20,700 t f' epare pIarts, or two hifts,S,5C6 employe,es; foaseled °58. /2 68.2 /3 59.6 27.9 /4 6,673 6,477 2,L432 2,348 32.7 1,';28 669 7.9 2,579 0.9 /8 15.6 /10
38,000 ntoursosotire sod more than 8,502otore and parts as 2 ehift,. 1,952ployea. Fpounded 0955 /2 ' ;.5 13 48.5 26.7 /4 3,950 5,388 3,140 2,388 43.3 (46.o) 1,70)3 i'37 U.6 3,657 4.9 /8 19.7/10
Soutrce: COsputed frim Vol. I and T ofP-profile_ oa Mi aoranturing establishmsentso UN Indvtrial Planning and Prograding Series No. 4 and 5, Ne- York 1967 atl 1968. Data in national currescies hate been corrted
ir't US dol-ars at squilibriu exchange raLe, cal:ulated by the Mission. FPr India the ethod is -Vleimnd in the Chapter On India's dependenc on indaetrtl ieport.. For Israel the squilibrim, rats
Vi.pe.ted Is 5 u per doliar Forer. tPer m l the present exchange rate was defleted backyards by usinig the wh0lse.e prioe item. Por rne at .Jwas offlil. exhang rates d-rt,g th analysed period-wer actcspied as ecuiibhrionmtrase.
/2 Deta as of 1963 /11 Shtre nf machinery & equp..ent. tonle A& instroeots, vehile., and office furniture & flatores.
13 Rqlpicemseit clveu as of 1963 /12 DIto as of 1)66
/A Share of ronfantory worherl in total eeploqeot. /13 Share of achinery and equipent and tools & instrosmpts.
/5 Before adroating or oVerhead /14 Profit rote in 1963 .as 5.0o. In 1965 productioo denlined, market price of leather went d8rw, while
the cost of bide., increae,d./6 Lsd atd buildings are rented /15 DIto as of 1965
/7 After depreciation /L6 Includes roycltios
'0 turnover tao /27 foopacy sOny vest, boo off the plnot o prenises calved at ho. I stAllion. So thIs As included~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IzCWV~l..,i,1,n i tepl.t pemse Ie tR I tiic floeS onset,s the char', f Gocldoery is 16i od the fined a..e.t per employse iv Re. 19181.
Capltal. labwr ratioShre cf Wagee Value added per p.rom (&a. per parson. eplyd)
Ixplioit Share cf valu Share of val. & -a1-i.ee in Capit.l-vlue added ratio exploy.d(Ole./p.er.on)IPrie. In r.a.et added l~ cutp.tj/ dded ir output2/ (grose) value added ntegral margin l Current prices Catsat urret pricS C ratet 1955
1, ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 9S9 p ric43/_ Pr 1
2/ Acxcrd.ing t.0 the Census (i.e. vele added eclulve of deprociatbox oUtpUt at o-facutory enUE ). Snn-e, Annu-l S&-vey cf InduetrLae 1959 nd 1965 (Cexes Seotor)2/ Ac:ording t input-cutput table. (i.e. vaue added Lnoluealv of dep-eoiatioo and ot.-eret output at producer e pric-). Sa-e, 19591 Arth. Vijnaxa, Sept.-Dec. 1967 p. 309 tInput-mttput tbIle c the Idial e-or fwr 1956), 1963
Deflated by iapliit price it-creae. *eparotely fc each brauchDeflated bjy lUplixit price Increase, cf capital goo,
* Statitica. dat ard coeffiieota relating to beveragee her, integrated into rae Be erge. A Tobacc
Table 52 (cont.)
Baic Ratioe of Ins InduatrY - Chan& over Tim
Part II - Cont.
Orcth Growtbin value added in capial per Oross profits asper person eployed person ployed percentage of sales 1/
Metal products 61.7 188.5Non-electrical machinery 133.9 181.7 ) 12.L
Electric m-abhin-ery 1113.5 172.3 10.1. 5/2.7
Transport equipment (excluding repairs) 78.9 135.2 ) 10.3
Total - Manufacturing Industry 111.0 183.9
1/ Source: Financial Statistics of Joint Stock Compariee in IndiA, Reserve Bank of India, 1967 p 149
2/ Sugar3/ Cotton textiles
! Iron and Steel5/ Engineering
;/ Cement7! BAsi, in.t,i1 heAi-1
TAILE 53
SO[E ST'RUCT'URAL. RELATIONSHIP IN INDIAN INIWJSTRY - 1959--65
Index of Change
1959 19?60 'L961 lq%J 1965 (1959-100)
1. Productive capital per f'actory (Rs thousand) 2,112 2,298 2,,405 hlL, I4 4,1680 221.62. Number of workers peir factory 353 :334 313 318 :294 83.33. Salaries, wages, etc. peir wcorker (Rs) 1,512 1,660 1,636 2,183 2,259 149.4L4. Ex-factory value of output per factory (Rs thousand) 3,272 3,619 3,718 14,602 14,770 145.85. Share of' latbor payments in value addled (%) 57.7 55.8 52.2 55.1 52.9 91.76. Salaries & arages as percentage of ex-factory
v aluei of output (%) 16.3 15.3 13.8 L4.8 13.9 85.37. Valu,e ad[ded as percentage of' output (%) 28.2 27.14 265.4 :26.7 26.2 92.98. Ratios Of:
(i) Productive capital to value added 2.29 2.31 ;2.45 3.51 3.73 162.9(ii) Productive c:apital to vaLue of output 0.65 0.63 0.65 0.914 0.98 15i.8
9. Productive capital per worker (Its) 5, 996 6,1387 7,679 13,888 15,937 265.8
Sources: Fifteein Years of Deocratic Planning, Vol. II SectoraL Developments, by S. Kesava Iyengar, Asia PublishingHouse, 1965, pc. 6593; Annual Survey of Industr-ies, 1965, CSO Calcutta, 1967, p. V.
Note: Coefficients of this table differ slightly from those calcULated in the tab'le on Growth and Structure ofIndiaLn industry, the latter relating exclusively to well-defined branches of manufacturing excludes non-classified manufacturing, gas and electr:icity, which were not eliminated from structural relationships ofthe present table.
Imparts of industrial inputs 224323 l 189,85 33 2 2.97,6 8Total imports 5;09 3 131; _
Note: Values conf'orm to c.i.f. Source: Various issues of' the Monthly Stat;istJLcs of Foreign Trade of Id1iat publishedI1, 1Dy the Govt. of India, Dept. of C(nmercial. Intelligenqe and Statis' ics.
TABLE 55
Classification of iport , by Production CtalAgories
(in laldis Re)
0CI IL S ASI I 1 P O R T S I N D E I
I 'I EM ___I_T C 8! iFrwIxp~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~alue>Md Pr-qpees- I ! rp eea ---
E. Ahare of six largest houses in fixed assets of themanufacturing industry (in %) 20.16 21,12
1/ Estimatc.2/ Excluding power generation, shipping, trading, construction, mining, and other non-industrial activities.
Sources: i. Data on net and gross fixed assets and total assets of public and private limited com-anies were computed from finincial statements published in The Reserve Bank of Indiamonthly bulletins andx blown-up by the mission.
ii. Data on fixed assets of public enterprises were comnouted from Annual Reports on the working of Industrial and Coccissrcial undertakings of the Central Government publishedby the Bureau of Public Enterprises, Ministry of Finance.
iii. Dtta on assets of large multifirm holdinps(or "looses" in the lndian namenclatore)were computed from financial statements published in the Economic Times (January 3 and 8,1968), and from data, contained in rK. Hazari "The Gorcerate Private Sector - 'ocn-enLrAtion, Ownership and Control" Planning Commission, Government of India, 1966, and inL.A. Joshi nThe Control of Industry in India" Bombay 1765. The 1956 data relate to the "inner" circle only, leaving outside such assets, in which large houses holcd lessthan 50%.
Notes, i. While it is clear thaLt 1958 data or large houses relate to net fixed nsets (i.e. book raloe of fi-xed ass, excl-dinc deprecia':isn), 1966/67 data refer to "assets" in"eneral. The mission compared some components of these ca-a (such as assets in largest industrial plants in she hblding) with cr,pany reports and found that "assets"exceed considerably ' net fised assets" of olanoe sbeeets, in soom. ac.es hy mor' than thrice. tie -issinn assumed, usin; the opproyimation rule, toat "assets" correspondprobably to "gross assets" of these houses, with wrich thcy ar. crc-r,ed.
ii. Neither total net fixed assets for the whole iiost ry in 195b, ohr total -ssets f.r b7;.6667 are available. 2o estimate 1i-S total assets the mission has worked from1-63 backwards. According to the AhI daoa, srncrrti:e raot t. i industry grcr yf 12.65 in 1960 (compared ts 1959). The risolan accested the saoe rate of growth for1)53-1559, To calculate assets in 1966/67 an-tber sethls W- v sed. Secordin tot) he Flanning, Cromission, public investment ir i3rdostry amounted to 516 crones in1966/j7. In miet terms, hoverer, assets in Gorsmsst-ssrd ind,ustry haoe increased hi onnly ,03 crores. Ar-unt of nnun l in-estlent in private industry was, in recent
:rs, rogihls equal to that in the sorern-"nt scotor, i-ct private industrr assets were still 2.2 times larger. Tic riosts-n nas assumec therefore, thun withdrawals ofcapital in sri-rate industry were p.--orti inate tc the sotal casistl stock. It has s':h-tracter these withdrt,oals tram tie total es-timaed aroant of rivotae inrestren-t(the l;ater escAl to rpblic isneotrent) and ias added ttie residiua2 to 1965/66 assets.
TABLig 60: SPFEAD OF ACTI=TY OF LARGEST INDIAII MIULTIFLIY HOLDIlNGS (HOUSES)
Conceyntr3tiorl by fL z (1966/t;7) ~ Comce-tr. ----- Ltlion byc b,du3try e (1958t ries-et11 . thde5i,67 Total __T_t_l_ Bs.1 Metl l1oRaloeri. _ Papr M Ieooal hLneralo _ X Indt
lackhs rn. in all lakhe rin 7ekd r,75 1.81 re7g 13kh re. 1,81. rs. lakhe re. 2 lald r 1.h ,i Z
Tnt. - .21 -s-ot, 519,04 100.0 Tata - all aNeete 163,oOin --I.n - enumfoctorl3 lndu3trr 395',00 76.8 100.00 in A,ich:In vhich Tat. ron & Steel Co. 180,57 725 rnact-rtng
.rtiLn 8urn - .11 aeseta 16;,60 100.0 Martin Born - a11in ohich -oua.ttring indnetry 139,27 81..1 100.00 aeeete 48,29in ohIol. Indian Iron & Steel 118,13 i in .81ih,
Indian Standard Wago. 5,55 3.98 3amn.facturiAgWN;lRi inde.try 10,99 8.4o 38,42 93.7 2,54 6.2 0.1
Maf.tinl - a11 .... t. 11:1,13 100.0 matlal - a11 assete 6,19in which - nanuoct-t-ig induetrr 105,78 93.5 100.00 in Isich,in whchh Natlonal Organ.l Chrail Ind, 3l,95 .!oaenuf.tring
Fruit Products and Vegetable Oils . . , . 19.59 11.46 3.82 7.00 4.62
TABLE 62
Share of Various License9e Categories of Private Corporate Sector in Paid-up Capital. (1958-1959).,Proposed ][nvestment on Machinery, and Value of Import of Capital Goodcs. (%)
Licensee Category No. of Cumulative Value of,comrpanies 7U.C. -Pops…
(1966) as in Invest- Irrnport of Capi.tal Goocds1958-59 ment ApTrnd Approved=ppronred ToI
on for clearly otherwise approvedmachinery
.1. 73 Large Houses . . . . . 7.38 44.15 54.47 59.24 61.95 57.09 59.,492. Their Second Tier Concerns . . . 0.57 0.83 1.00 0.908 0.68 1.14 0.923. Total of 1 ancl 2 . . . . . 7.95 44.98 55.47 60.22 62.63 58.23 60.,41
01 which
4. 20 Larger Housies . . . . . 3.74 30.37 39.97 40.23 47.38 31.94 39.565. Their Second ITer Concerns I . . . 0.45 0.67 0.74 0.E18 0.55 0.14 0.806. Total of 4 am 5 .. . . . . 4.19 31.04 40.71 41.11 47.93 32.98 40.367. Large Indiepencdent Cospanies . . . 0.22 8.49 6.97 6.82 5.98 5.27 5.628. Total of 3 and 7
1]. TctaL of 8,9 and 10 . . . 100.00 100.00 1oCY00 00.0O(Private Corporate Sector )
Source - as Table 11
TA U-36
Zxrput and Acha,ewnent of Capacity and Production in Selected Indusrties
196r-611656Sr. Product ____of
No. Accounting Targets Licensed Achievements COt. 4 Tairgets Licensed Achievern4ents. Col- io 'Remarks.- -- capacity -- as a%- capac ity---- as a
as on Ins- Pro- of Capa- Pro- ais on Installed Produc- % ofCapa- Produc- 1-7-61 talled duction Col. I city ductionl 1-4-66capacity ~iorl 'Col- city tioni capaciry
1 2 3 4 5 6 7 8 9 10 II 12
I. Cement Machinery . . .RS. Crores ... Ili o-6 . 4'5 4'5 23 65 2C100 4-9 44-4 @llhuiing
2. Diesel Engitnes (StaitiotAiLry) .ooo' Nos. .. .. 56E 47 7 43t 2 .. 72 2 .6-, 100 lo 93' I 138 s~cr a
TABLE 64 -. ConLt.Targets and Achiev~rentens of Capacity and Prdouction in 'Selected indwst tis
i1&30-61 1965-66
Si. Product Unit of Targets Acduevements 'Targts Achievenwits (N~. roNo. AccoDunt- -- -- -Liiwised------- Col. 4 --- -Lias --- ---- a or Rema r
ing. Capa.- Pro- aLpacity rnstal- Pro- as a Ospa- Prod- capacity fnsta 1ro-% ofcity duiction as on, tailed diuctioni % of city ducticat as on- led duction (;oL 7
Sources: I. Progmrmana r4 Indwria1-& elopmmmt x936--6s, v Y6-66.2. Fourtlh Five Year Plan, Draft Outline. 03. FcOrth Five Year Plan, Draft, 1969-2,,4. Holndbook of lindusuta Data D)G I,1966.
6. Mont Satstc ai~r I tic of SeImcaed limisari in WIe Now--Dec. z067 (C. S..- 0.7. LmU drcapscy Spiem have been tmhmn bfis ASmA& Ph.mr bri 1th and uibt is rp,;of 8mal Advbm ComI of I=m**w~
T'ak.a frcs Reiport of the Incmutria2l Liceimsing Po'licy Inbquiry Coumtittee, Qoverrme.t oif Intdia., Jul.y 15969.
TABLE 65
PLAN CUrPUT TAROFTS AND ACHIEITNTS HN MAJOR INDUSTRIFS
First Five Tear Plan Secoed Five Tear PFi Third Five Tear Plan Arnal Plane
Base Tear Target Achleveasnt Target Achievesent Targe t Achievesat Target Achies et Target Achiavemet TargotIndustry ud &&in raresentaLtie rDuost Unit 1950/51 1955/56 196G/61 1965/66 1966/67 1967/68 1968/1i9
Sourcms The First flve-Tear Plan p 44k4-45D. Seconi Fin-Tsr Plan pp 388, 411-412, 417-428. Thtrd Five-Tsar Plwie pp 35, 4ij54. Fourth Five-Tear Plan p 289Annusi Plit Progreae Report 1966-67 p 53, 126, 140-143. Annual Plan 1967-68 p.
8 6. Annual Plan 15'68-69 p 134
j 33 KY sod above2/ 200 H.P. and below3/ Cmaercial, passerger, Jeepa & station r.gona
Ncte: Plan target for Industrial p:oduotiu a-re set in physical units. T, illustrate anticIpatIons and actual evolution ~f mio Indh-trio., the Miosio ha. choon £ afew of the noat representative itens in each brandh.