🔆 Indian industry's reliance on cheap labor and long working hours, hindering innovation and long-term growth.
Key Points:✅
Long Working Hours: 🔸11-12 hours/day in Ludhiana factories.
🔸46.7 average weekly hours in India vs. 38 in US, 36.6 in Japan.
Industry bosses advocating for longer hours.
✅
Informal Labor: 🔸78.3% workers casual or self-employed (2023-24).
🔸50% of regular workers lack contracts, leave, benefits.
🔸68 million in small, unregistered enterprises.
✅
Contract Workers: 🔸56% of new factory jobs post-2011-12.
🔸Lower wages, lack of regulations.
🔸Migrant workers form core labor supply.
✅
Profit vs. Wages: 🔸Profit share increased from 31.6% (2019-20) to 46.4% (2021-22).
🔸Downward pressure on wages.
✅
Small vs. Large Firms: 🔸Small firms supply components to large firms.
🔸Delayed payments, low prices, race-to-bottom competition.
🔸Weak state support, import competition.
✅
Lack of Innovation: 🔸Reliance on cheap labor over technology.
🔸Garment industry: Stagnant export share (3.1%).
🔸Enfeebling small firms, reduced purchasing power.
✅
Negative Momentum: 🔸Low wages depress domestic market.
🔸Impoverished workers stifle long-term growth.
Possible Questions:✅Prelims: Which of the following statements regarding the Indian manufacturing sector is/are correct?
The majority of the workforce is employed in the organized sector.
Indian industries primarily compete on the basis of technological innovation.
There is a trend of increasing reliance on contract workers.
(a) 1 only
(b) 2 only
(c) 3 only
(d) 1 and 2 only
✅Mains: "The Indian industry's continued reliance on cheap labor, rather than innovation and technological advancement, is hindering its long-term growth and global competitiveness." Discuss this statement, highlighting the factors contributing to this trend and suggesting measures to promote a more sustainable and equitable industrial development model.
#gs3 #prelims
#economy
@upsc_4_economy@upsc_the_hindu_ie_editorial