ABSTRACT

Further, there are extremely large variations in productivity within the manufacturing

sector, with the registered (organised) manufacturing industry showing nearly seven times

the labour productivity levels of unregistered (unorganised) manufacturing in 20092010 and also employing less than one-third the numbers of workers. This is in marked contrast to

the experience of China, for example, where the period of rapid growth has been associated

not only with industrialisation but particularly the emergence and preponderance of medium-

and large-scale units that provide formal employment to workers. The persistence and con-

tinued domination of low productivity work in all the major sectors despite several decades

of rapid aggregate income growth suggests a particularly unusual growth pattern in India.