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In the context of declining degrees of vertical integration in major industries of Indian manufacturing sector during the post-reform period, the present paper is an attempt to examine how such “vertical disintegration” has affected firms’ market power and its implications for competition policy. Using panel dataset of 49 majors industries of Indian manufacturing sector for the period 2003–04 to 2010–11 and applying the system generalized method of moments approach to estimate of dynamic panel data models, the paper finds that vertical integration does not cause any significant impact on average market power of firms in an industry. Instead, it is influenced by market size, and selling and technology-related efforts. While selling intensity has a positive impact on market power, the impact of market size and technology intensity is found to be negative. Notably, like vertical integration, market concentration, import to export ratio, and capital intensity also do not have any significant impact on market power. The findings of this paper, therefore, have important implications for competition law and policy in general and policies and regulation relating to technology development and international trade in particular.

Acquisition of land for mining directly benefits its owners who generally belong to higher castes and are literates. However, the extent of benefits accrued may differ across the owners. The difference in benefits is dependent on their size of landholding, amount of land given up and compensation received, their education level, the provision for jobs, etc. In this context, the present chapter attempts to examine how the socially marginalised communities are included in mining-led development initiatives and explore its implications for further land acquisition. The chapter uses primary data collected from the vicinity of Talcher coalfields, the second-largest producer of coal in the country, situated in Angul district of the Indian state of Odisha. Attempts towards acquisition of land for mining in the region in recent years have faced severe protests by various social groups. The sample households were selected following a proportionate stratified random sampling procedure. Using descriptive statistics and applying the ordinary least squares (OLS) method of estimation, the chapter finds that mining-based development initiatives do not necessarily lead to financial inclusion of the socially marginally households, particularly when there is provision of employment in the mines only for the landowners. Since many of the socially marginalised households lack ownership rights over land, they suffer from limited employment opportunities in the mining enterprises. In addition, asymmetries in bargaining power, access to information and capabilities further limit the scope of reaping the benefits of mining. Hence, socially inclusive mining and smooth economic transitions require imparting higher and quality education to the members of these households, developing the skills, providing greater access to information and widening the scope of employment beyond the landowners.

CONTEXT In northern West Bengal and southern Bangladesh, Rabi crops, sown in winter and harvested in the spring, are an important source of income and nutrition for the target communities. In the study areas, NGOs and extension services have been engaging with farming communities on selecting suitable crops for the upcoming season. This engagement took place in the absence of quantitative tools to discuss trade offs and what-if scenarios to support an informed discussion. OBJECTIVE The objective of this study was to design a crop-choice model to support extension agronomists in engaging with the farming communities more effectively using a quantitative analysis tool. In this process, we explored how agricultural system models can be inclusive and allow participation and eventual application by NGO and government extension agents, using a process of gender sensitive contribution. Methods The crop-choice model includes several constraints related to available resources, including land, labour, capital and technologies to calculate optimal crop areas within the Rabi season. The crop choices are determined considering gender specific community perceptions of risks, labour use, market, price-volatility, self-consumption, water use and cash flow. The model was used to explore the consequences of different crop choices on income, gender specific labour, use of inputs and markets, and to reveal the trade-offs of pursuing different crop choice pathways in the context of agricultural intensification. The initial model was demonstrated to the farmers and the extension agents, and based on their reflections, it was fine-tuned further to make the engagement process more effective. For better communication with the participating farmers, the model related questions and findings were translated in the local language (Bengali). RESULTS AND CONCLUSIONS We found that the modelling process can be made more inclusive from the outset by including farmers, NGO and extension agents as co-contributors of the model at each of the modelling steps and incorporating their reflections. Such an inclusive and reflective approach provides easy-to-use interfaces and enables translation of model results in ways that more effectively benefit farming communities. The process of engagement with farmers during tool development has been very valuable to farmers and researchers alike and the use of the tool has made the farmers informed about alternative scenarios and led to actual benefits for crop choice decision making. Inclusive farming systems models need to consider the gender dimension and its critical role in farm decision making and how this can be included in models to reflect the diversity of decision process. To maximise relevance of the model for next users and farmers, it was important that these key stakeholders were part of the model development from the beginning, this study has focused on the same throughout. SIGNIFICANCE This study demonstrated that appropriate design and development principles enabled bioeconomic farming systems models to be used by NGO and government extension agents to engage with farming communities as discussion support tools in farming decisions. Such an approach would make the engagement process more convincing and effective. Besides, it would also provide useful insights to the NGO and extension agents in revising their intervention strategies.

In the context of changing farming practices, particularly with increasing use of chemical fertilizers, the present paper attempts to statistically model the implications of such input intensification for growth of agricultural production and yield and crop diversification in Hooghly district of the Indian state of West Bengal. Understanding the issue is very important for sustainable growth of the sector in the long-run. The paper uses secondary data collected from the Bureau of Applied Economics and Statistics of the Government of West Bengal for the period 1989–2010. The paper shows that greater use of chemical fertilizers has no strong correlation with growth of agricultural production and yield. It is also found that agricultural production has fluctuated during this period possibly due to improper use of N–P–K over the years exceeding the assimilative capacity of soil. Further, excessive use of chemical fertilizers has also resulted in over extraction of ground water in the area. It is, therefore, suggested that efforts should be made towards deeper understanding of inherent potentials as well as limitations of soil and designing the farming strategies accordingly. In addition, formation of farming groups and promotion of organic farming should be explored to facilitate sustainable growth of the sector. Decentralized participatory planning can play a crucial role in this regard.

In the context of initiation of economic reforms in general and changes in policies and regulations of the banking sector in particular, the present paper attempts to examine the structure-conduct-performance relationships in Indian banking sector. It is observed that there have been changes in the market structure of Indian banking sector, conducts of the banks and their performance in the post-reform era, especially during the last decade, though the changes have not been significant in every aspect. Using a panel dataset of 59 banks operating in India during 1999-2000 to 2008-2009 and applying the two-stage least squares (2SLS) method of estimation, the paper finds that there exist strong inter-linkages amongst structure of the market, banks’ conduct and their financial performance. While market share of a bank depends directly on its market size, asset base, selling efforts, and past financial performance, its selling efforts vary directly with market share, asset base, and past financial performance. On the other hand, returns on assets of a bank vary directly with its market share, but inversely with its asset base and selling efforts. The regression results essentially suggest for multidirectional and dynamic SCP relationships in Indian banking sector. It is also found that the nature of ownership has significant influence on market share, selling efforts and financial performance of the banks. As compared to the nationalised banks, market share of the private banks (both domestic and foreign) is found to be lower. But private banks make greater selling efforts and have better financial performance vis-à-vis their public sector counterparts

In the context of economic reforms in general and subsequent wave of M&A in particular, this paper attempts to examine the impact of M&A on the export competitiveness of firms in the Indian manufacturing sector. By using a panel dataset of 33 industries from the period of 2000-01 to 2007-08, it is found that, the wave of M&A has enhanced the export competitive- ness of firms. The industries with larger number of M&A have greater penetration in the inter - national market. The other factors that have significantly contributed to export competitive - ness include the presence of MNCs and import of foreign technology. Export competiveness is higher in the industries that have larger presence of MNCs and greater foreign technology purchase intensity. On the other hand, industries with higher capital intensity or greater selling efforts by firms have limited penetration in the international market. However, this paper did not find any significant influence of market concentration, competition from imports, in-house efforts, or profitability on export competitiveness of firms. Therefore, the findings from this paper have important policy implications in relation to the regulation of M&A and entry of MNCs as well as the import of capital goods.

R&D Efforts by Indian Pharmaceutical Firms in the New Patent RegimeIn the context of recent amendments to the Indian Patent Act and introduction of the product patent, the present paper attempts to examine the innovative efforts of Indian pharmaceutical companies in the new patent regime. The paper finds that although R&D expenditure has increased significantly in the current decade, the increasing R&D efforts are not widespread across the firms and more than half of the Indian pharmaceutical companies do not spend at all on in-house R&D. This means that protection of intellectual property alone is not enough to encourage the firms towards innovation. Instead, it is observed that R&D expenditure varies directly the with market size of the firms, their capital intensity, exports orientation and past profitability, but inversely with their market share, selling efforts and import intensity. However, a firm's involvement in mergers and acquisition or sourcing of technology from foreign sources or variability in financial performance does not have any significant impact on its R&D efforts. Hence, the policy measures should be directed towards restricting the monopoly power of firms, encouraging exports, liberalizing imports of necessary machinery and equipment, and motivating the firms towards innovation, especially in life-saving drugs, an through appropriate incentive/disincentive structure.