Employment Growth in India:Findings from Organized Manufacturing Industries

This study attempts to understand the dynamics of the sluggish growth of Indian organized manufacturing sector and employment intensity at aggregate as well as industry levels using Annual Survey of Industry data at 3-digit level. Time period considered is from 1981 to 2014 with the trend breaks in major economic events/shocks in Indian economy. The study shows a small improvement in the employment elasticity of organized manufacturing sector over the period of time. Within the broad industrial groups, the gap between employment and gross value added of medium low-tech industrial group has come down rapidly over the period. Similarly, low-tech group has also shown a slight improvement in the employment elasticity over the period.