TREND AND GROWTH OF OUTPUT AND EMPLOYMENT IN MANUFACTURING INDUSTRIES OF ODISHA

Abstract

The objective of the study is to analyse  the trend, growth and performance of manufacturing industries in Odisha. The study is based on time series data of twenty five years i.e. from 1990-91 to 2014-2015 has been taken into account. The number of reporting units are increasing but at a slower rate. It was 1678 units in the year 2003-04 and in 2006-07 it was increased to 1906 units. But just after one year it was again reduced to 1745 units, though it was again increased to 1848 units in 2008-09. During 2013-14 it was increased to 2714 units. It is marked from the above table that both input and output are increasing and always output is greater than input. The correlation between total employment with number of registered factories and Fixed Capital is same as 0.84 but the correlation between employment and Working Capital is 0.77. From this we can say that, if we want to increase the total employment, we have to increase total number of factories and Fixed Capital not the Working Capital. Similarly in the case of value of output there is a high and positive correlation with that of Fixed Capital, which is equal to 0.98. So in order to increase total output, Fixed Capital should increase at a faster rate. The use of Fixed Capital and Working Capital increased but at a slower rate. The investment should be directed to those industries which not only help in achieve the objective of productivity and growth but also generates employment.