Steep dip in labour productivity in 8 yrs

An analysis of India Ratings and Research has shown that there has been a sharp drop in the average of India’s labour productivity from 7.4% between 2010-11 and 2014-15 to a low of average 3.7% during fiscal year 2015-16 to 2017-18. Examining the data of Annual Survey of Industries (ASI), the organization said “Labour productivity fell to 2.6% and 2.9% in FY17 and FY18 respectively compared to high growth phase of FY04-FY08 when it grew 14.2%.” It also added that longer and sustainable labour productivity growth is dependent on investments in innovation, knowledge, and intangible capital by businesses, and governments’ commitments towards structural reforms.

Subscribe To Newsletter

Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.