Industrial Concentration and Dispersion Trends in Major Indian States

Abstract

This study investigates the patterns of industrial concentration and dispersion across major industrial states in India. Over the past few decades, India's industrial landscape has undergone significant transformation, with certain states emerging as industrial hubs while others lag behind. By employing a combination of quantitative methods, including location quotient analysis, Herfindahl-Hirschman Index (HHI), and spatial analysis, this research evaluates the extent to which industrial activities are concentrated or dispersed within the leading industrial states of India. The study explores the factors influencing these trends, including state-level policies, infrastructure development, access to raw materials, labor availability, and market proximity. The results show distinct regional disparities, with some states exhibiting high industrial concentration due to the presence of key sectors like manufacturing, information technology, and heavy industries, while others show signs of industrial dispersion in response to evolving economic and policy environments. The findings highlight the need for balanced regional industrial development strategies to ensure equitable growth across India.