Industrial Development and Industrial Agglomeration in Northern Mountainous States, India : A Case Study of Baddi Area, Himachal Pradesh State

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  • UNE Yoshimi
    The Center for Contemporary India Studies, Hiroshima University:National Institutes for the Humanities

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Other Title
  • インド北部山岳州における工業開発と工業集積 : ヒマーチャル・プラデーシュ州バッディ地域を事例として
  • インド ホクブ サンガクシュウ ニ オケル コウギョウ カイハツ ト コウギョウ シュウセキ : ヒマーチャル ・ プラデーシュシュウ バッディ チイキ オ ジレイ ト シテ

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This paper aims to clarify the process of industrial development and factors regarding industrial agglomeration in the state of Himachal Pradesh, India. In 2003, the central government announced its "New Industrial Policy and other concessions for the states of Uttaranchal and Himachal Pradesh." This policy intended to promote possible tax incentives and subsidies for those industries that strove to reduce the environmental load in specified industrial areas or estates. On the other hand, the Himachal Pradesh state government launched its "Industrial Policy 2004." This policy aimed to promote new business facilities in backward areas of the state. As a result of these policies, the state was successfully industrialized, although this industrialization was not state-wide. Rather, it was specifically concentrated in flat areas such as the Baddi Area. As of the 2000s, industrial investment in Himachal Pradesh has accelerated. Most investment was in large- and medium-scale units, the majority of which were concentrated in the Baddi Area. In the Baddi Area, development of industrial estates/areas began in the 1960s, and since then, industrial sites have grown intermittently. The primary types of firms are pharmaceutical firms and their related industries as well as firms in the electrical/electric industry. The main reasons for industrial agglomeration in the Baddi Area are as follows. First, the central and state governments' industrial policies attracted many larger firms to the state. Second, the development costs of industrial estates/areas and operational costs of factories in the Baddi Area, which is located in the flat area of the state, is lower than that in the mountainous area of the state. In addition, the Baddi Area is closer to Chandigarh, which is one of North India's large economic and political cities. Consequently, industrial agglomeration and industrial development have especially been promoted in the Baddi Area.

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  • GEOGRAPHICAL SCIENCES

    GEOGRAPHICAL SCIENCES 69 (1), 1-16, 2014

    THE JAPANESE SOCIETY FOR GEOGRAPHICAL SCIENCES

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