Forces Behind Structural Changes: A Quantitative Analysis of Indian Corporate Sector

This paper attempts to analyse Quantitatively the pattern of structural changes in Indian Corporate sector during the post-Independence era. A priori, the process of structural change may be ascribed to two factors, namely the Internal dynamism of the Indian industrial sector itself, and the factors external to the process and the observed pattern of structural change may be brought about by the mutual effect of these two factors. The primary objective of the present paper is to estimate the relative importance of these two factors in bringing about the observed pattern of changes in the industrial structure. The analysis is based on the data available in the Calcutta Stock Exchange Blue Books over the years 1951 to 1980. The results of the categorical data analysis technique used for the purpose of the present analysis indicate that there has been a definite structural tilt toward new modern industries from the old traditional industries and this structural metamorphosis is largely due to the external policy intervention.