Impact of government spending on industrial sector productivity in India

The sole purpose of the study is to empirically examine the effects of government spending on the industrial productivity in India for the period 2005–06 to 2011–12. The study employed two variable regression analysis model specified on the basic of hypothesized functional relationship between governments spending as the explanatory variables, while IIP of six use based industries constituted the explained variable. The model for the study was estimated using the ordinary least square (OLS) technique. The result shows that public spending has statistically significant impact on the industrial productivity of the economy in the period of reviewed.