The present paper intends to study the changing structure and performance of the Indian registered manufacturing sector from 1980-81 to 2003-04 at two-digit level of industrial classification. To analyze the structure and performance, trend growth rates and structural ratios have been calculated. The study period has been divided into two parts, pre-reform period (1980-81 to 1990-91) and the post-reform period (1991-92 to 2003-04). Further, to understand the pattern of performance at a more disaggregated level, the post-reform period has been divided into two parts, early part of the post-reform period (1991-92 to 1999-2000) and the later part of the post-reform period (2000-01 to 2003-04). Using the Annual Survey of Industries (ASI) data, the study found, there has been industrial slowdown during the later part of the post-reform period. And as far as the performance of the manufacturing sector is concerned, it has been at its best during the 1990s (1991-92 to 1999-2000).

In a developing country like India, the manufacturing sector plays an important role in the overall economic development. Many countries have experienced faster economic growth over the last two centuries or so, due to rapid industrialization. The success stories of the Asian economies like Korea, Malaysia, Thailand, Taiwan and China underline the fact that, manufacturing sector can be the driver of faster economic growth. In order to become an economic superpower, India needs to accelerate its growth rate continuously for the next decade or so. For such a high level of sustained growth, the manufacturing sector has to contribute a lot. Being the principal component of the secondary sector in terms of its contribution to GDP, it also provides a sizeable employment and has been a major source of revenue collection for the government.

It is difficult to assess the performance of manufacturing sector with respect to the broad objectives of industrialization over the last six decades. There are some dimensions with significant achievements. The two important dimensions that have come out in the process are: (1) Widening of the industrial base and the consequent ability to produce a very broad range of industrial products; and (2) The fostering of entrepreneurship and the development of technological capabilities and skills in the economy (Ahluwalia, 1985). However, these achievements cannot deny the fact that the potential has been far from being fully exploited and the performance with respect to the core indicator (rate of manufacturing growth) has not been sound indeed.

As far as the performance of the Indian manufacturing sector is concerned, it underwent a fundamental change in the mid-1980s with the first round of liberalization. But, the introduction of the Industrial Policy of 1991 certainly provided a new direction to the overall pattern of industrialization, which at a later stage had larger impacts on the performance of the economy in general and manufacturing sector in particular. The industrial policy statement issued by the Government of India on July 24, 1991 emphasized that the Indian industries should be made more competitive in the changing global scenario. Changes in industrial policy resulted in the introduction of changes in the policy relating to industrial licensing, foreign investment, technology import, ownership and special control over very large private enterprises. After the introduction of New Industrial Policy in 1991, it was expected that the industrial sector in general, and the manufacturing sector in particular, would perform better. Against this backdrop, the present paper presents an overall perspective by highlighting the changing manufacturing structure and performance at two-digit level of industrial classification from 1980-81 to 2003-04.

Managerial Economics Journal, Indian Registered Manufacturing Sectors, Rapid Industrialization, Economic Development, Foreign Investments, Industrial Policies, Central Statistical Organization, CSO, Post-reform Periods, Post Liberalization Period, Agricultural Industries, Industrial Classifications.