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

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.

Ahmedabad's Sabarmati riverfront under scrutiny after Subhash Bridge damage

By Rosamma Thomas*  Large cracks have appeared on Subhash Bridge across the Sabarmati in Ahmedabad, close to the Gandhi Ashram . Built in 1973, this bridge, named after Subhash Chandra Bose , connects the eastern and western parts of the city and is located close to major commercial areas. The four-lane bridge has sidewalks for pedestrians, and is vital for access to Ashram Road , Ellis Bridge , Gandhinagar and the Sabarmati Railway Station .

No action yet on complaint over assault on lawyer during Tirunelveli public hearing

By A Representative   A day after a detailed complaint was filed seeking disciplinary action against ten lawyers in Tirunelveli for allegedly assaulting human rights lawyer Dr. V. Suresh, no action has yet been taken by the Bar Council of Tamil Nadu and Puducherry, according to the People’s Union for Civil Liberties (PUCL).

Farewell to Robin Smith, England’s Lionhearted Warrior Against Pace

By Harsh Thakor*  Robin Smith, who has died at the age of 62, was among the most adept and convincing players of fast bowling during an era when English cricket was in decline and pace bowling was at its most lethal. Unwavering against the tormenting West Indies pace attack or the relentless Australians, Smith epitomised courage and stroke-making prowess. His trademark shot, an immensely powerful square cut, made him a scourge of opponents. Wearing a blue England helmet without a visor or grille, he relished pulling, hooking and cutting the quicks. 

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.

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

Differences in 2002 and 2025 SIR revision procedures spark alarm in Gujarat

By A Representative   Civil rights groups and electoral reform activists have raised serious concerns over the ongoing Special Intensive Revision (SIR) of electoral rolls in Gujarat and 11 other states, alleging that the newly enforced requirements could lead to large-scale deletion of legitimate voters, particularly those unable to furnish documentation linking them to the 2002 electoral list.

From crime to verdict: The 27-year journey that 'rewarded' the destroyers of Babri Masjid

By Shamsul Islam    Thirty-three years ago, on December 6, 1992, a 16th-century mosque was reduced to rubble by a frenzied mob orchestrated by the Rashtriya Swayamsevak Sangh (RSS) and its political fronts. The demolition was not a spontaneous outburst of Hindu sentiment; it was the meticulously planned culmination of a hate campaign that branded Indian Muslims as “Babur-ki-aulad” and the Babri Masjid as a symbol of historical humiliation.