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.”

---

Also see http://www.counterview.net/2014/07/study-finds-scant-regard-for-labour.html

Comments

MG-NREGA: A global model still waiting to be fully implemented

By Bharat Dogra When the Mahatma Gandhi National Rural Employment Guarantee Act (MG-NREGA) was introduced in India nearly two decades ago, it drew worldwide attention. The reason was evident. At a time when states across much of the world were retreating from responsibility for livelihoods and welfare, the world’s second most populous country—with nearly two-thirds of its people living in rural or semi-rural areas—committed itself to guaranteeing 100 days of employment a year to its rural population.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Concerns raised over move to rename MGNREGA, critics call it politically motivated

By A Representative Concerns have been raised over the Union government’s reported move to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with critics describing it as a politically motivated step rather than an administrative reform. They argue that the proposed change undermines the legacy of Mahatma Gandhi and seeks to appropriate credit for a programme whose relevance has been repeatedly demonstrated, particularly during times of crisis.

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.

Rollback of right to work? VB–GRAM G Bill 'dilutes' statutory employment guarantee

By A Representative The Right to Food Campaign has strongly condemned the passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–GRAM G) Bill, 2025, describing it as a major rollback of workers’ rights and a fundamental dilution of the statutory Right to Work guaranteed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In a statement, the Campaign termed the repeal of MGNREGA a “dark day for workers’ rights” and accused the government of converting a legally enforceable, demand-based employment guarantee into a centralised, discretionary welfare scheme.

From jobless to ‘job-loss’ growth: Experts critique gig economy and fintech risks

By A Representative Leading economists and social activists gathered in the capital on Friday to launch the third edition of the State of Finance in India Report 2024-25 , issuing a stark warning that the rapid digitalization of the Indian economy is eroding welfare systems and entrenching "digital dystopia."

School job scam and the future of university degree holders in West Bengal

By Harasankar Adhikari The school recruitment controversy in West Bengal has emerged as one of the most serious governance challenges in recent years, raising concerns about transparency, institutional accountability, and the broader impact on society. Allegations that school jobs were obtained through irregular means have led to prolonged legal scrutiny, involving both the Calcutta High Court and the Supreme Court of India. In one instance, a panel for high school teacher recruitment was ultimately cancelled after several years of service, following extended judicial proceedings and debate.

India’s Halal economy 'faces an uncertain future' under the new food Bill

By Syed Ali Mujtaba* The proposed Food Safety and Standards (Amendment) Bill, 2025 marks a decisive shift in India’s food regulation landscape by seeking to place Halal certification exclusively under government control while criminalising all private Halal certification bodies. Although the Bill claims to promote “transparency” and “standardisation,” its structure and implications raise serious concerns about religious freedom, economic marginalisation, and the systematic dismantling of a long-established, Muslim-led Halal ecosystem in India.

Women’s rights alliance seeks NCW action against Nitish Kumar over public veil incident

By A Representative An alliance of women’s rights activists has urged the National Commission for Women (NCW) to initiate legal action against Bihar Chief Minister Nitish Kumar over an incident at a public function in Patna that they allege amounted to a grave violation of a Muslim woman’s dignity and constitutional rights. In a detailed complaint dated December 18, the All India Feminist Alliance (ALIFA), part of the National Alliance of People’s Movements (NAPM), sought the NCW’s immediate intervention following an episode on December 15 during the distribution of appointment letters to newly recruited AYUSH doctors in Patna.

Search This Blog