Skip to main content

Labour under stress: Gujarat's lag in wages vis-a-vis all-India grows over the years, says fresh study

Counterview Desk
A just-prepared research paper “Labour Under Stress in Gujarat?” by Atulan Guha of the Institute of Rural Management, Anand (IRMA) has noted that huge investments in Gujarat's industrial sector, leading to a high growth rate of the state economy, has failed to translate into “higher wage earnings in Gujarat relative to the rest of India.” Basing on the National Sample Survey Organisation's 2011-12 data, the senior scholar says, the all-India wage rates of urban casual workers were 1.18 times higher, and of regular salaried urban workers 1.41 times higher, than Gujarat.
Worse, the scholar's calculations suggest, the gap between urban workers’ daily wages in Gujarat and all-India has been growing over the years. Thus, between 2007-08 and 2011-12 the urban workers' “all-India daily average wage of casual workers multiplied to 1.13 times that of Gujarat.” As for the female urban workers, in 2007-08, the all-India ... average daily wage, which was 1.07 times that of Gujarat, “rose by 1.25 times by 2011-12.” The scholar finds a similar increase in the gap involving regular urban daily wages for both males and females between 2007-08 and 2011-12.
Apprehending criticism that “this gap between all-India and Gujarat wages exists due to the different sets of prices exposed to the workers”, the scholar says, “The broad trends observed in the wage-gap between Gujarat and the all-India average do not change much, as the all-India consumer price index (CPI) for industrial workers is only 3.56 per cent higher than that of the CPI for industrial workers in Gujarat in 2011-12. In 2007-08, this figure was 3.04 per cent.”
Calling the situation “interesting” for a state considered highly industrialized with an “entrepreneurial and industry-friendly policy framework”, the scholar says, “The industry contributed 37% GSDP to the state in 2011-12, whereas industries all over the country contributed 27% to India’s GDP..” Further, “compared to all the Indian states, Gujarat’s contribution in total manufacturing GSDP increased from about 11% in 1993-94 to 14% in 2011-12.” Also, “registered manufacturing evinced a steeper rise- from about 11% to 16%.”
In fact, according to the scholar, between 2007-08 and 2011-12, Gujarat’s contribution to India’s GDP in all three sectors of the economy rose – in the agriculture and allied sector it rose from 6.6 per cent to 7 per cent, in industry from 11 per cent to 12.3 per cent, and in services from 5.9 per cent to 6 per cent. But this high rate has failed to translate “to augmented wages relative to the rest of urban India”, he emphasises.
He says, “the incremental manufacturing output” is mostly because of “a single industry – petroleum refining – with its share in gross value added in the state’s registered manufacturing having risen from 4% in 2000-01 to nearly 25% a decade later”, the scholar says, adding, “This is because of the output from only two refineries – the shore-based refineries of Reliance and Essar in Jamnagar.” The petroleum refining sector, as represented by Reliance and Essar, are known to be highly capital intensive, relying on modern automation technology.
A major reason the scholar seeks to suggest for low wages in Gujarat is poor bargaining power of Gujarat workers. While regretting that no authentic data is on this score is not available, he says, a look at the website of the Bhartiya Mazdoor Sangha (BMS) – “the trade union of the RSS and hence a sister organization of BJP, the ruling party of the state for last 15 years” – shows that only 2.54% of its members come from Gujarat.”
Based on on this, the scholar surmises that among India’s large states, Gujarat’s trade union membership strength would rank 13th, which only goes to reveal “how the workers of Gujarat are so little organized.” He adds, “Organizational paucity hampers the workers’ ability to fight for a greater share in the output growth or value addition.”
In fact, the scholar regrets, the workers’ issues are “barely heard in the state’s dominant political discourse” and “this could be the reason for the major political parties’ paltry efforts towards organizing workers.”
---

Comments

TRENDING

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

CFA flags ‘welfare retreat’ in Union Budget 2026–27, alleges corporate bias

By Jag Jivan  The advocacy group Centre for Financial Accountability (CFA) has sharply criticised the Union Budget 2026–27 , calling it a “budget sans kartavya” that weakens public welfare while favouring private corporations, even as inequality, climate risks and social distress deepen across the country.

From water scarcity to sustainable livelihoods: The turnaround of Salaiya Maaf

By Bharat Dogra   We were sitting at a central place in Salaiya Maaf village, located in Mahoba district of Uttar Pradesh, for a group discussion when an elderly woman said in an emotional voice, “It is so good that you people came. Land on which nothing grew can now produce good crops.”

When free trade meets unequal fields: The India–US agriculture question

By Vikas Meshram   The proposed trade agreement between India and the United States has triggered intense debate across the country. This agreement is not merely an attempt to expand bilateral trade; it is directly linked to Indian agriculture, the rural economy, democratic processes, and global geopolitics. Free trade agreements (FTAs) may appear attractive on the surface, but the political economy and social consequences behind them are often unequal and controversial. Once again, a fundamental question has surfaced: who will benefit from this agreement, and who will pay its price?

Penpa Tsering’s leadership and record under scrutiny amidst Tibetan exile elections

By Tseten Lhundup*  Within the Tibetan exile community, Penpa Tsering is often described as having risen through grassroots engagement. Born in 1967, he comes from an ordinary Tibetan family, pursued higher education at Delhi University in India, and went on to serve as Speaker of the Tibetan Parliament-in-Exile from 2008 to 2016. In 2021, he was elected Sikyong of the Central Tibetan Administration (CTA), becoming the second democratically elected political leader of the administration after Lobsang Sangay. 

From Puri to the State: How Odisha turned the dream of drinkable tap water into policy

By Hans Harelimana Hirwa, Mansee Bal Bhargava   Drinking water directly from the tap is generally associated with developed countries where it is considered safe and potable. Only about 50 countries around the world offer drinkable tap water, with the majority located in Europe and North America, and a few in Asia and Oceania. Iceland, Switzerland, Finland, Germany, and Singapore have the highest-quality tap water, followed by Canada, New Zealand, Japan, the USA, Australia, the UK, Costa Rica, and Chile.

Mark Tully: The voice that humanised India, yet soft-pedalled Hindutva

By Harsh Thakor*  Sir Mark Tully, the British broadcaster whose voice pierced the fog of Indian history like a monsoon rain, died on January 25, 2026, at 90, leaving behind a legacy that reshaped investigative journalism. Born in the fading twilight of the Raj in 1935, in Tollygunge, Calcutta, Tully's life was a bridge between empires and republics, a testament to how one man's curiosity could humanize a nation's chaos. 

Territorial greed of Trump, Xi Jinping, and Putin could make 2026 toxic

By N.S. Venkataraman*  The year 2025 closed with bloody conflicts across nations and groups, while the United Nations continued to appear ineffective—reduced to a debate forum with little impact on global peace and harmony.  

Michael Parenti: Scholar known for critiques of capitalism and U.S. foreign policy

By Harsh Thakor*  Michael Parenti, an American political scientist, historian, and author known for his Marxist and anti-imperialist perspectives, died on January 24 at the age of 92. Over several decades, Parenti wrote and lectured extensively on issues of capitalism, imperialism, democracy, media, and U.S. foreign policy. His work consistently challenged dominant political and economic narratives, particularly those associated with Western liberal democracies and global capitalism.