In this paper, the main motivation of this research study is to measure inter-regional intra-industry disparity within the selected Indian manufacturing industry groups and industrial states. Using three measures Output-Capital Ratio, Capital-Labour Ratio, and Output-Labour Ratio, we critically measured the disparity level of average labour productivity, the marginal efficiency of capital, and capital intensity. The paper also measured and compared the rate of disparity of per-capita income between six major industrial states. We determined the reasons for lack of industrialization: unequal distribution of skillful labours and upgraded technologies. We suggested in this chapter to the policymakers to campaign more for the labour training schemes and new technologies promotion schemes equally in every corner of the country.

This study analyzes the causes of excess capacity through the response of capital, labor, and capital intensity. Consequently, we use the three-input CES estimation model. We randomly selected a centralized and a decentralized industry group for our comparative analysis. By estimating the elasticity of substitution between (capital, labor) as a nest, and capital intensity for an industry, we found that the centralized industry groups are facing the problem of excess capacity. Through this study, we discuss the current government policies and the present scenario of a manufacturing plant. And then we suggested to policymakers, i.e. how to resolve the problem of excess capacity through the expansion of manufacturing plants with advanced machinery.