Studies showed that the Indian workers suffered from lack of
productivity. Do you agree to this
Answers
Explanation:
A number of factors are relevant here. First, low labour productivity implies misallocation of labour. The shift away from agriculture should mean that this isn’t a problem in India. But efficient allocation doesn’t work quite so neatly. Economists Margaret S. McMillan and Dani Rodrik pointed out in a 2011 paper, Globalization, Structural Change And Productivity Growth, that as firms increase in efficiency, they have reduced need for labour. Workers are then compelled to move to more low productivity employment. After the Jawaharlal Nehru years, growth in India until 1980 was labour intensive; it has been capital intensive since. And as Tadit Kundu has pointed out in Mint (goo.gl/M1ePi3), capital-intensive sectors such as metal products and chemicals have been responsible for the bulk of productivity growth while labour-intensive sectors such as leather and textiles have lagged behind. This adds to the inequality problem. It also places India at risk of the phenomenon McMillan and Rodrik identified.
Answer:
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