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  • Author: Amrut Godbole, Sagnik Chakraborty, Manjeet Kripalani
  • Publication Date: 03-2021
  • Content Type: Working Paper
  • Institution: Gateway House: Indian Council on Global Relations
  • Abstract: Covid-19 has accelerated the process of digital manufacturing, already under way globally, and in India. Companies that saw it as an option, now understand it as an imperative. Within India, digital adoption by companies has outpaced their global peers on several criteria including new business and workforce models. A rush of foreign investment into India’s digital space, will expand this trend. This is a significant shift for India, as Covid’s geopolitical and economic fallout is the realignment of supply chains, largely away from China. India, with its size, market and tech capability, is seen as an alternative site – though it has not been an immediate beneficiary. That has been Vietnam, with its Asian proximity and favourable regulatory environment. However, India is cognizant of the opportunity, and the government has enacted some enabling policies. In November 2020, the Production Linked Incentive scheme (PLI) was extended to over a dozen sectors in which India is already competitive, like pharmaceuticals, automobile, telecom, textiles, electronic tech consumer products. These subsidies encourage products to be made in India, for the home and export market. Just prior to this, in September 2020, the government addressed a core problem in India – labour. It replaced 29 old legislations by four, simplified labour codes, to modernize labour regulations. Meanwhile, those companies in India, largely Indian and foreign multinationals, already on the digital manufacturing path, used the year to fast-track their digital adoption.
  • Topic: Science and Technology, Digital Economy, Leadership, Manufacturing
  • Political Geography: South Asia, India
  • Author: Tuhinsubhra Giri, Santosh Mehrotra
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: Centre for Sustainable Employment, Azim Premji University
  • Abstract: Most international development economics and industrial organization literature emphasises the importance of SMEs (small and medium enterprises) as important to output, but especially to employment generation. Countries have different definitions for SMEs. In India the MSMEs (micro, small and medium enterprises) are defined in terms of investment in plant and machinery or equipment. The MSME Ministry (Annual Report, Government of India 2017–18) stated that the sector accounts for 45% of the manufacturing output and 40% of the total exports of the country; also that MSMEs accounted for 30.74% of GDP in 2014– 15. Not surprising, MSMEs are considered a driving force of the economy.
  • Topic: Economics, Labor Issues, Employment, Manufacturing, Economic Development
  • Political Geography: India
  • Author: Raavi Aggarwal
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: Centre for Sustainable Employment, Azim Premji University
  • Abstract: This article analyses relationships between the implementation of state-level industrial policies in India and manufacturing sector economic performance (employment and gross value added), utilising data from the Annual Survey of Industries conducted by the Government of India. I employ panel data fixed-effects regression models to evaluate the associations between the industrial policy and state-industry specific performance over the 2007-08 to 2014-15 period, incorporating potential effects of the state government's political alignment, infrastructure provision and educational expenditure in the state. The results provide evidence of a positive correlation between industrial policy implementation and firm output and employment, by around 12.6 - 14 per cent. However, subsequent introductions of an industrial policy are negatively associated with employment and are uncorrelated with industrial GVA. This analysis has implications for economic policy in light of the Central Government's plans to implement a revised industrial policy at the national scale.
  • Topic: Economics, Industrial Policy, Employment, Manufacturing
  • Political Geography: India
  • Author: Amay Narayan, Amit Basole
  • Publication Date: 05-2018
  • Content Type: Working Paper
  • Institution: Centre for Sustainable Employment, Azim Premji University
  • Abstract: Despite its weak performance in terms of job creation in recent years, the organised manufacture sector remains vital to employment policy. This paper investigates the aggregate trends in this sector, in employment, output, labour-capital ratio, as well as wage share and wage rates at the three-digit NIC level over a long period from 1983 to 2016 using the Annual Survey of Industries data. We show that three distinct sub-periods can be identified within the overall period. Further, using shift-share decomposition we show that most of the decline in the L/K ratio can be explained by within industry changes. Finally, we analyse industries with respect to their capacity to deliver job growth as well as wage growth.
  • Topic: Economics, Employment, Economic Growth, Manufacturing
  • Political Geography: India
  • Author: Rajesh Bhattacharya, Sarmishtha Sen
  • Publication Date: 05-2018
  • Content Type: Working Paper
  • Institution: Centre for Sustainable Employment, Azim Premji University
  • Abstract: In India, the relative importance of the handloom sector, one of the largest employers following agriculture, has been declining for last few decades. The All India Handloom Census data for the year 2009-10 however showed a rather modest decline in the number of weavers in West Bengal, in contrast to a 33% decline at the national level in the same year. But share of handloom income in total household income for the weaver households in the state has decreased significantly pointing to considerable occupational diversification among them. Based on a qualitative field study in three districts of West Bengal—namely, Hooghly, Nadia and Purba Bardhaman—this essay presents findings related to the condition of handloom weavers in West Bengal and in the light of the findings, examines two issues— intra-sector and inter-sector mobility of labour as well as weavers’ response to changing market conditions. The paper argues for a more labour-focused approach in place of currently dominant tradition-focused understanding of the sector.
  • Topic: Labor Issues, Employment, Manufacturing
  • Political Geography: India, West Bengal
  • Author: Chinju Johny, Jayan Jose Thomas
  • Publication Date: 05-2018
  • Content Type: Working Paper
  • Institution: Centre for Sustainable Employment, Azim Premji University
  • Abstract: A striking feature of the Indian economy has been the relatively small contribution made by the manufacturing sector to the country’s Gross Domestic Product (GDP) and, more importantly, to employment. In 2013, manufacturing accounted for only 16.5 per cent of India’s GDP, compared to 29.7 per cent of China’s.3 According to the National Sample Survey (NSS) on Employment and Unemployment, India’s manufacturing sector provided employment to 61.3 million in 2011-12, which was only 13 per cent of the country’s total workforce of 472.5 million in that year (Thomas 2015a).
  • Topic: Economics, Labor Issues, GDP, Employment, Manufacturing
  • Political Geography: India