The paper includes the most debatable issue
to examine the impact of economic liberalisation on
Indian capital goods sector. It deals with the effect of
growth and productivity on sub-sectors of capital goods
industries- electronics industries, electrical machinery
industries, non-electrical machinery industries and
transport equipment industries. For this purpose, ASI
database has been used for period 1980-81 to 2013-14
which is further classified into pre-reform (1980-81 to
1990-912) and post-reform (1991-92 to 2013-14) period.
The study yielded limited evidence of increase in
productivity growth and n evidence of increase in
capital productivity. The decline of growth and shares
of sub-sectors also suggests that trade liberalisation
cannot interpret as important factor to affect the
productivity in long-run.