Modeling the profitability of Indian States with MLR

The analysis is focused on the factors affecting the profitability of the manufacturing sector across states. From the data, it can be seen that in the year 2017-18, Himachal Pradesh had the highest profitability of 18.44% while Maharashtra had the highest profit of Rs.1, 21, 35,683 lakhs. Similarly A&N Island had the lowest profit and profitability of -0.67%. The difference in the results can be widely seen because of the difference in the amount of fixed capital, employment, the net value produced, and market share in terms of factories. The estimated model is precise enough to make predictions on the performance of the manufacturing sector through changes in capital intensity, vertical integration, labor intensity, and the number of factories present in a particular state.