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Productivity and Unit Labour Cost in Indian Manufacturing: A Comparative Perspective

Abdul Azeez Erumban
Economic and Political Weekly
Vol. 44, No. 15 (Apr. 11 - 17, 2009), pp. 39-48
Stable URL: http://www.jstor.org/stable/40279133
Page Count: 10
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Productivity and Unit Labour Cost in Indian Manufacturing: A Comparative Perspective
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Abstract

Up to date results on prices, labour productivity and unit labour costs for Indian manufacturing in comparison with some advanced and developing countries are presented here. The results indicate that the labour productivity levels in Indian manufacturing are much lowerthan those of Germany, the us, South Korea, Hungary and Poland, but higher than those of Indonesia, Brazil and Mexico. The unit labour cost in Indian manufacturing is the lowest among the countries in our sample, indicating strong cost competitiveness of Indian manufacturing vis-a-vis these countries. However, a comparison with China reveals a fast erosion of Indian manufacturing competitiveness in the recent period.

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