The policy of economic liberalisation had bypassed all the Bimaru states, except Rajasthan, said an analysis by the Associated Chambers of Commerce and Industry of India on the impact of economic liberalisation on the industrial sector.
"Andhra Pradesh, along with Bihar and Madhya Pradesh, witnessed a sharp decline in the number of industrial units, while Uttar Pradesh did marginally better during the nineties," the analysis said.
It shows that the liberalisation policy, based on free trade and competition, resulted in 17 per cent increase in the total number of industrial units from 112,286 in 1991-92 to 131,557 in 1999-2000 under the Factories Act.
In Bihar, the number of units declined 57 per cent from 3,671 to 1,570 and in Madhya Pradesh 21 per cent from 4,163 to 3,269. In Uttar Pradesh, the number increased modestly by 179 from 10,124 to 10,303.
Among the southern states, Andhra Pradesh witnessed a sizeable fall in the number of units from 15,972 to 13,164, while Karnataka saw an 18.8 per cent increase, rising from 5,850 to 6,952, Kerala 18.8 per cent, from 3,702 to 4,845, and Tamil Nadu 30.6 per cent, from 15,502 to 20,249.
The northern states fared better. Haryana witnessed an increase in the units from 3,102 in 1991-92 to 4,296 in 1999-2000, Himachal Pradesh from 331 to 508, Jammu & Kashmir from 240 to 393, Rajasthan from 3,689 to 5,063, Uttar Pradesh from 10,124 to 10,303 and Delhi from 3,346 to 3,596.
The western states of Gujarat, Goa, Maharashtra and the Union Territories of Dadra & Nagar Haveli and Daman & Diu also improved their position in the liberalised environment.
The number of units in Gujarat rose from 11,094 to 14,710, Goa from 243 to 477, Maharashtra from 15,264 to 19,009, Dadra & Nagar Haveli from 132 to 846 and Daman & Diu from 66 to 1,118. In Madhya Pradesh, however, the number of units declined by 21.4 per cent from 4,163 to 3,269.
In the east, the impact of industrial liberalisation is positive, except in Bihar, where the number of units declined from 3,671 to 1,570. In West Bengal, the number rose from 5,679 to 6,373 and in Orissa from 1,566 to 1,591.
The Assocham analysis shows that Nagaland outshone all other states in the north-east with the number of units rising from 63 to 147, an increase of 133 per cent. In other states of the region, the picture is mixed.
In Assam, the number of units rose from 1,625 to 1,648 and in Tripura from 200 to 206. However, the number of units declined in Manipur from 63 to 61 and in Meghalaya from 29 to 27.
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