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Steep dip in labour productivity in 8 yrs

An analysis of India Ratings and Research has shown that there has been a sharp drop in the average of India’s labour productivity from 7.4% between 2010-11 and 2014-15 to a low of average 3.7% during fiscal year 2015-16 to 2017-18. Examining the data of Annual Survey of Industries (ASI), the organization said “Labour productivity fell to 2.6% and 2.9% in FY17 and FY18 respectively compared to high growth phase of FY04-FY08 when it grew 14.2%.” It also added that longer and sustainable labour productivity growth is dependent on investments in innovation, knowledge, and intangible capital by businesses, and governments’ commitments towards structural reforms.