Impact of infrastructure availability on level of industrial development in Jharkhand, India: a district level analysis

This paper contributes to the ongoing research on measuring the industrial development at a micro (district) level and turning the findings into useful policy tools. The paper takes the analysis at micro level and concentrates on the districts of Jharkhand state - one of the most resource rich states in India with a low level of industrial development. For better understanding the impact, the infrastructure is split into three major components - physical infrastructure (PI), banking infrastructure (BI) and social infrastructure (SI). Results show that, when all the districts as a group is considered, for all the models, the association of the components of infrastructure with level of industrial development is found to be weak - which reflects the low level of infrastructure availability in the state, whereas when the more industrialised districts are considered, for the same set of models, only PI and SI are found to be significant, suggesting a lack of proper synchronisation of the industrial development policy for BI at the district level.