Import Intensity In The Registered Manufacturing Sector Of India

The international experience of industrially advanced countries shows significant reduction in energy use per unit of output, which is often known as energy conservation in response to rising energy prices. Using ASI data this paper makes an attempt to understand behaviour of labour and energy use in the organized manufacturing sector of Maharashtra during 1980-81 to 1997-98. Both labour intensity and fuel intensity have declined significantly during the period across the industries in Maharashtra. However, the capital intensity registered a significant rise leading to increase in the total factor productivity in the manufacturing sector of Maharashtra. The differential rises in the prices of energy and labour induced industries to substitute fuel for labour in the manufacturing industries such as wood and wood products, paper and paper products, non-metallic mineral products, basic metal and alloys industries, and metal products. However, fall in the fuel and labour intensity with rising capital intensity explains technological change is the factor behind rising total factor productivity in the manufacturing sector of Maharashtra.