ASI 2022-23 Report Highlights Declining Worker Productivity And Wage Growth In India

ENA Economy 2024-10-04 15:17:17 New Delhi, Oct 4 (KNN) The Annual Survey of Industries (ASI) for 2022-23 has unveiled concerning trends in India's industrial landscape, highlighting issues with labour productivity and income levels. The survey, conducted by the Ministry of Statistics and Programme Implementation, indicates that wage growth has not kept pace with inflation, leading to a contraction in real incomes for workers. Perhaps most alarmingly, the value added per worker decreased in the 2022-23 period, signalling a decline in overall productivity. This situation presents a paradox where employment and output figures have risen, but the quality of employment and workers' economic well-being have deteriorated. The ASI data also exposes a structural imbalance in the Indian economy. Many sectors that employ large numbers of workers are not among the top contributors to economic value addition. This disparity suggests that a significant portion of India's workforce is engaged in low-value occupations, raising questions about the nature of job creation in the country. Further analysis of the ASI figures, which are presented in current prices, reveals that when adjusted for inflation, the real growth in value added is minimal. This adjustment provides a more sobering view of the industrial sector's performance than the nominal figures might suggest. Commenting on the findings, Amit Basole, Head of the Centre for Sustainable Employment, Azim Premji University in Bengaluru, noted the concentration of employment in low-productivity sectors. The labour-intensive sectors like food products and textiles are low-productivity ones, but they contribute a large share of overall employment, he explained. Basole also pointed out that the weak wage growth observed in the ASI aligns with data from other sources, such as the Periodic Labour Force Surveys, lending credibility to the findings. He expressed concern over the stagnation in productivity and value added, emphasising the potential long-term implications for the economy. The ASI, which plays a crucial role in informing calculations of India's gross domestic product and gross value added, has thus brought to light critical challenges facing the nation's industrial sector. These findings may prompt policymakers to reassess strategies for boosting productivity and ensuring more equitable economic growth. (KNN Bureau) 39491 https://knnindia.co.in/news/newsdetails/economy/asi-2022-23-report-highlights-declining-worker-productivity-and-wage-growth-in-india 2024-10-04 15:17:17 knnindia.co.in ASI 2022-23 Report Highlights Declining Worker Productivity And Wage Growth In India