Determinants of Business Risk in Indian Manufacturing Sector - Post Liberalization Era

Abstract

The manufacturing sector has come to play a predominant role in the economic life of almost all countries, irrespective of their ideological moorings. The different industrial sectors of India witnessed astronomical growth over the last 15 years. Most of the developed countries are strong enough in their manufacturing sector. Though the service sector in India has brought faster economic success, still the manufacturing sector plays an important role on the ground of sustainability. Today, the modern businesses by default undergo competition and hence they constantly re-orient their activities. These activities automatically reflect in profitability and as a result there arises fluctuation in profits. This fluctuation should be regularly motorised through accounting variables and effective steps should be taken to control the cost.