Analysis of Productivity in Indian Industries
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Date
2012
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Abstract
An attempt has been made to analyse determinants o f productivity based
on the indices o f partial and total factor productivity in rural, urban and
aggregate industries o f India fo r the reference period between 1998-99
and 2007-08. Multiple linear regression model was applied to analyse the
data. To find out the average annual growth rate in partial as well as total
factor productivity , exponential growth function was applied. It was found
that the trend rates o f partial and total factor productivity indices were
positive.The analysis also revealed an inverse relationship between labour
productivity and unit- labour cost in these industries. Significant relationship
existed between all forms ofproductivity indices and the major factors which
infiuence productivity. It was concluded that the productivity o f capital and
total factor productivity may be taken into account along with labour
productivity while granting wage increase so that wage increase is not o f
infiationary nature. In order to boost the total factor productivity growth
there is a pressing need to harmonise the industrial relations with workers
and management In this context, amendments in labour laws,greater
participation o f workers in management and rehabilitation o f workers
especially in case o f disinvestment o f public sector units are some spheres
which require quick attention o f policy makers to create conducive
environment.