Spatial variation in challenges faced by Indian industry

Abstract

India is a vast sub-continent containing variety of geographies, states with different languages, internal conditions which results in difference in opportunities and challenges for businesses to thrive in those localities. In order to obtain a sustainable economic growth, the government of India must focus on the all-round development of the country with each state growing at a healthy rate. But due to different reasons there is huge regional imbalance when it comes to spread of industries in India. According to the annual survey of Industries that was conducted in 2020, 20% of the total fixed capital of industries is in Gujarat. Tamil Nadu has the highest number of factories and has employed the most number of people in India and its number sums up to 16% of the total factory count in the country. Whereas, states like Madhya Pradesh, Jharkhand and Bihar have less than 2% of the total annual count.