ABSTRACT

The unorganized sector constituted around 90 per cent of the total workforce by the turn of the last century. In non-agricultural activities, its share in terms of employment rose from 76 per cent in 1983 to 83 per cent in 1999–2000, while its share in terms of ‘value added’ dropped from 49 per cent in 1983 to 45 per cent in 1999–2000 (Unni 2003), indicating a downward trend in productivity. In the backdrop of this scenario, it may be interesting to examine the growth of unorganized manufacturing, particularly in the post-reforms period. Whether new employment opportunities have come up in the unorganized manufacturing sector, whether linkages between the organized and the unorganized manufacturing sector have become stronger over the years and whether labour productivity has grown and benefited the workers in terms of a rise in real earnings are some of the questions that need to be looked into.