Labour Absorption in Indian Manufacturing: The Case of the Garment Industry

Jayan Jose Thomas and Chinju Johny


This paper is an attempt to understand the reasons for the
relatively slow growth of labour absorption into the manufacturing sector in India. The study focuses on the garment industry, which has been a significant generator of factory employment in India, especially for females, from the 1990s onwards. Despite this growth, it appears that India has not fully exploited the employment-creation potential in this industry, particularly so in comparison with the performance of countries such as China and Bangladesh. The present study is based on an analysis of secondary data sources and a field study of garment factories and workers in Bangalore.

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