Amit Basole and Amay Narayan
Azim Premji University
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.
Basole , Amit and Amay Narayan. 2018. “Long-Run Performance of the Organised Manufacturing Sector in India: Aggregate Trends and Industry-level Variation.”, Centre for Sustainable Employment Working Paper #18, Azim Premji University, Bangalore.