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2021 | OriginalPaper | Chapter

9. Labour Regulations and Employment Growth in the Organised Food Processing Industry in India

Author : Prateek Kukreja

Published in: Agro and Food Processing Industry in India

Publisher: Springer Singapore

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Excerpt

Industrialisation has always been viewed as an engine of economic growth. The manufacturing sector bears strong bidirectional linkages with agriculture for labour absorption and higher growth. Emphasis has been laid in India on the growth of the manufacturing sector as it can contribute to capital accumulation and technical change. This approach is rooted in a dual-sector growth model (Lewis 1954): in a developing economy, growth can be explained in terms of the labour transition between the “capitalist” sector and the “subsistence” sector. Lewis envisaged that the surplus labour would continually exit the subsistence sector and expand the capitalist sector, but this process of industrialisation remains a challenge in most developing countries, and it has not fully translated into productive jobs in nations where it has occurred (Rodrik 2016; Gollin et al. 2016). …

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previous chapter Dynamics of Competition in Food and Agriculture Inputs Industries in India: A Mobility Analysis
next chapter Beyond the Polemics: Subcontracting in the Unorganised Food Manufacturing Sector in India
Footnotes
1
The Factories Act 1948 statistically defines the formal, or organised, sector as one which covers all factories that run on electricity and employ 10 or more workers and all factories that do not run on electricity and employ 20 or more workers.
 
2
An informalisation of industrial labour is stated to take place through an increasing share of employment in the unorganised sector in total manufacturing and through subcontracting and use of temporary and contract workers within the organised manufacturing sector (Goldar and Aggarwal 2010).
 
3
This study has been criticised for methodological shortcomings, including the “miscoding of individual amendments and misleading aggregation and cumulation procedures” (Bhattacharjea 2006, 2017, 2019; Anant et al. 2006). But it provides useful insights into the rigidities in India’s labour laws, and the index has been used—with and without modification into the impact of labour regulations on employment outcomes (see among others, Hasan et al. 2007; Kukreja and Bathla 2018).
 
4
Indian businesses and entrepreneurs perceive Maharashtra and Gujarat to be business-friendly, and they find that labour regulations and over-manning in Kerala are extensive (Dollar et al. 2002; World Bank 2003).
 
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Metadata
Title
Labour Regulations and Employment Growth in the Organised Food Processing Industry in India
Author
Prateek Kukreja
Copyright Year
2021
Publisher
Springer Singapore
Book
Agro and Food Processing Industry in India

Print ISBN: 978-981-15-9467-0

Electronic ISBN: 978-981-15-9468-7

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-981-15-9468-7_9