Long-Run Performance of the Organised Manufacturing Sector in India: Aggregate Trends and Industry-level Variation

Author
Amay Narayan, Amit Basole
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