Export-Employment Conundrum in India’s Manufacturing Under Globalization: In Search of a Strategic Approach

Abstract

Empirical evidence suggests that higher economic growth driven by liberal trade and investment under globalization has been associated with growing inequalities at different levels. This has been often attributed to decline in the share of labor in national income resulting from declining employment and deterioration in the quality of employment generated. Given the increasing role of manufacturing exports in generating employment, this chapter analyzed the employment in India’s manufacturing exports with focus on both quantity and quality. With a view to characterize the industries with respect to their export-employment potential the study identified four industrial categories; 1) export-employment champions, 2) export champions-employment laggards, 3) export laggards-employment champions and 4) export employment laggards. Our findings suggest that export-employment champions and export laggards and employment champions contribute to more than sixty per cent of total manufacturing employment. These two categories also create better quality of employment as compared to other categories and the manufacturing sector. Apart from their better performance in terms of quantity and quality of employment they are also found instrumental in more equitable distribution given the higher share of wages in the value added of such industries. The disaggregated analysis, however, observed significant inter-industry variation within each of the industrial categories with respect to the quantity and quality of employment generated. Based on these findings the study makes the case for a strategic approach towards employment oriented export promotion strategy by harnessing information communication technologies.

Appendix

See Table 14.

Table 14 Annual average growth rates of output, employment and trade

NIC	Description	NIC	Description
151	Production, processing and preservation of meat, fish, fruit vegetables, oils and fats	269	Manufacture of non-metallic mineral products NEC
152	Manufacture of dairy product [production of raw milk is classified in class 0121]	271	Manufacture of basic iron and steel
153	Manufacture of grain mill products, starches and starch products and prepared animal feeds	272	Manufacture of basic precious and non-ferrous metals
154	Manufacture of other food products	273	Casting of metals [this group includes casting finished or semi-finished products producing a variety of goods, all characteristic
155	Manufacture of beverages	281	Manufacture of structural metal products, tanks, reservoirs and steam generators
160	Manufacture of tobacco products [tobacco-related products are also included while preliminary processing of tobacco leaves is class	289	Manufacture of other fabricated metal products; metalworking service activities
171	Spinning, weaving and finishing of textiles	291	00—Manufacture of general purpose machinery + manufacture of office, accounting and computing machinery.
172	Manufacture of other textiles	292	Manufacture of special purpose machinery
173	Manufacture of knitted and crocheted fabrics and articles	293	Manufacture of domestic appliances, NEC
181	Manufacture of wearing apparel, except fur apparel [this class includes manufacture of wearing apparel made of material not made in]	311	Manufacture of electric motors, generators and transformers
182	Dressing and dyeing of fur; manufacture of articles of fur	312	Manufacture of electricity distribution and control apparatus [electrical apparatus for switching or protecting electrical circ]
191	Tanning and dressing of leather, manufacture of luggage handbags, saddlery and harness	314	Manufacture of accumulators, primary cells and primary batteries
192	Manufacture of footwear	315	Manufacture of electric lamps and lighting equipment
201	Sawmilling and planing of wood	319	Manufacture of NEC
202	Manufacture of products of wood, cork, straw and plaiting materials	321	Manufacture of electronic valves and tubes and other electronic components
210	Manufacture of paper and paper product	322	Manufacture of television and radio transmitters and apparatus for line telephony and line telegraphy
221	Publishing [this group includes publishing whether or not connected with printing]. Publishing involves financial, technical, artist	323	Manufacture of television and radio receivers, sound or video recording or reproducing apparatus, and associated goods
222	Printing and service activities related to printing	331	33—Manufacture of medical appliances and instruments and appliances for measuring, checking, testing, navigating and other purposes
223	Reproduction of recorded media [this class includes the reproduction of records, audio, video and computer tapes from master copies, re]	332	Manufacture of optical instruments and photographic equipment
231	Manufacture of coke oven products [this class includes the operation of coke ovens chiefly for the production of coke or semi –coke]	341	Manufacture of motor vehicles
232	Manufacture of refined petroleum products	342	Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers
241	33—Manufacture of basic chemicals + processing of nuclear fuel	343	Manufacture of parts and accessories for motor vehicles and their engines [brakes, gearboxes, axles, road wheels, suspension shock]
242	Manufacture of other chemical products	351	Building and repair of ships and boats
243	Manufacture of man-made fibres [this class includes manufacture of artificial or synthetic filament and non-filament fibres].	352	Manufacture of railway and tramway locomotives and rolling stock
251	Manufacture of rubber products	353	Manufacture of aircraft and spacecraft
252	Manufacture of plastic products	359	Manufacture of transport equipment NEC
261	Manufacture of glass and glass products	361	Manufacture of furniture
		369	Manufacturing NEC