Search

An essential characteristic of firm size distribution patterns in developing countries including India, is a bimodal distribution with a "missing middle", which is widely accepted in development economics. We analyse data from the Annual Survey of Industries (ASI), National Sample Survey (NSS) and Economic Census to assess the firm size structure of the whole non-farm sector. The contribution of the paper is that for the first time a comprehensive database is constructed to enable analysis of the size structure of India's non-farm enterprises. The second contribution is that we find a deep distortion in India, with even a "small"-scale sector being very small, relatively. We examine briefly the policy-related causes that make India an outlier even among Asian economies in respect of size structure of enterprises. Finally, we argue that the historically policy-induced informality of enterprises is being entrenched by the current hiatus in state policy in even recognising the true nature of the problem of micro, small & medium enterprises (MSMEs), which holds back both their growth and employment. [ABSTRACT FROM AUTHOR]

Using national-level employment data, this paper explores both the supply and demand-side factors responsible for stalling India's structural transformation on the employment side. We have found that although the overall LF participation has consistently been declining, the size of open unemployment and discouraged LF are rising at an unprecedented pace. This employment crisis arose because of the stalled structural transformation owing to the lack of effective demand for skilled workers in the non-farm sectors. This crisis is not only reflected in stagnant real wages, but it also adversely affected GDP growth and the incidence of poverty. Hence, unless measures are taken quickly, India's demographic dividend, which ends in 2040, is under severe threat. [ABSTRACT FROM AUTHOR]

The share of manufacturing in India's GDP was only 16% in 1991 and has remained stagnant at that level until 2018. Employment in manufacturing has also remained stagnant at under 12.8% of the workforce. One reason is that India has not had a coherent industrial policy in place since 1991. Meanwhile, some 100 countries in the world have adopted industrial policies, especially since the global economic crisis of 2008. The paper begins by spelling out the reasons why India needs an industrial strategy. It goes on to spell out eight elements of what would constitute a manufacturing strategy for India, which would address the concerns of large corporates and small and medium enterprises, as well as micro-enterprises. We would argue that such a strategy will lay the foundations for an inclusive growth strategy for India, which will also create growing jobs for an increasing labour force. [ABSTRACT FROM AUTHOR]

This article explores the notion of the duality principle, as embodied in the German dual system of Vocational Education and Training (VET), within the context of a field survey of skill shortages faced by German and Indian firms operating in India. The study finds that these firms experience problems with the quantity and quality of skills supplied and, in response to these problems, use some form of in-house training for new recruits and employees. Firms also express a willingness to cooperate in skill-development programmes and in joint funding with government. The article makes a strong case for adapting some of the critical elements of the German dual system to render Indian VET more responsive to the labour market and provide a formally structured and integrated system of skill development. [ABSTRACT FROM AUTHOR]

In the first decade of this century, India became one of the world's fastest growing large economies, and began to face serious skill-related shortages of workers. Its TVET system has not responded adequately to the growth in demand for semi-skilled and skilled workers. This article describes six sets of reforms that India's educational planners and policy-makers must put into place if these shortages are not to constrain India's ability to benefit from the demographic dividend. [ABSTRACT FROM AUTHOR]

This paper draws upon case studies of countries which universalised primary education early in their development process and rapidly increased secondary enrolments thereafter. It examines the common elements of social, and specifically, education policy among these high achievers, and also evaluates the policy lessons for other developing countries from the experience of these countries. The supply and demand-side factors which help in explaining this success are compared with the situation prevailing in the rest of the developing world. [ABSTRACT FROM AUTHOR]