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

From plagiarism to proxy exams: Galgotias and systemic failure in education

By Sandeep Pandey* Shock is being expressed at Galgotias University being found presenting a Chinese-made robotic dog and a South Korean-made soccer-playing drone as its own creations at the recently held India AI Impact Summit 2026, a global event in New Delhi. Earlier, a UGC-listed journal had published a paper from the university titled “Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis,” which became the subject of widespread ridicule. Following the robotic dog controversy coming to light, the university has withdrawn the paper. These incidents are symptoms of deeper problems afflicting the Indian education system in general. Galgotias merely bit off more than it could chew.

Farewell to Saleem Samad: A life devoted to fearless journalism

By Nava Thakuria* Heartbreaking news arrived from Dhaka as the vibrant city lost one of its most active and committed citizens with the passing of journalist, author and progressive Bangladeshi national Saleem Samad. A gentleman who always had issues to discuss with anyone, anywhere and at any time, he passed away on 22 February 2026 while undergoing cancer treatment at Dhaka Medical College Hospital. He was 74.

From ancient wisdom to modern nationhood: The Indian story

By Syed Osman Sher South of the Himalayas lies a triangular stretch of land, spreading about 2,000 miles in each direction—a world of rare magic. It has fired the imagination of wanderers, settlers, raiders, traders, conquerors, and colonizers. They entered this country bringing with them new ethnicities, cultures, customs, religions, and languages.

Sergei Vasilyevich Gerasimov, the artist who survived Stalin's cultural purges

By Harsh Thakor* Sergei Vasilyevich Gerasimov (September 14, 1885 – April 20, 1964) was a Soviet artist, professor, academician, and teacher. His work was posthumously awarded the Lenin Prize, the highest artistic honour of the USSR. His paintings traced the development of socialist realism in the visual arts while retaining qualities drawn from impressionism. Gerasimov reconciled a lyrical approach to nature with the demands of Soviet socialist ideology.

Public money, private profits: Crop insurance scheme as goldmine for corporates

By Vikas Meshram The farmer in India is not merely a food provider; he is the soul of the nation. For centuries, enduring natural calamities and bearing debt generation after generation while remaining loyal to the soil, this community now finds itself trapped in a different kind of crisis. In February 2016, the Modi government launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) with the stated objective of freeing farmers from the shackles of debt. It was an ambitious attempt to provide a strong safety net to cultivators repeatedly devastated by excessive rainfall, drought, and hailstorms.

'Policy long overdue': Coalition of 29 experts tells JP Nadda to act on SC warning label order

By A Representative In a significant development for public health, the Supreme Court of India has directed the Food Safety and Standards Authority of India (FSSAI) to seriously consider implementing mandatory front-of-pack warning labels on pre-packaged food products. The order, passed by a bench of Justices J.B. Pardiwala and K.V. Viswanathan on February 10, 2026, comes as the Court expressed dissatisfaction with the regulatory body's progress on the issue.

Unpaid overtime, broken promises: Indian Oil workers strike in Panipat

By Rosamma Thomas Thousands of workers at the Indian Oil Corporation refinery in Panipat, Haryana, went on strike beginning February 23, 2026. They faced a police lathi charge, and the Central Industrial Security Force fired into the air to control the crowd.

From non-alignment to strategic partnership: India's ideological shift toward Israel

By Bhabani Shankar Nayak* India's historical foreign policy maintained a notable duality: offering sanctuary to persecuted Jewish communities dating back centuries, while simultaneously supporting Palestinian self-determination as an expression of its broader anti-colonial foreign policy commitments. The gradual shift in Indian foreign policy under Hindutva-aligned governance — moving toward a strategic partnership with Israel while reducing substantive engagement with the Palestinian cause — raises legitimate questions about ideological motivation and geopolitical consequence.

Development vs community: New coal politics and old conflicts in Madhya Pradesh

By Deepmala Patel* The Singrauli region of Madhya Pradesh, often described as “India’s energy capital,” has for decades been a hub of coal mining and thermal power generation. Today, the Dhirouli coal mine project in this district has triggered widespread protests among local communities. In recent years, the project has generated intense controversy, public opposition, and significant legal and social questions. This is not merely a dispute over one mine; it raises a larger question—who pays the price for energy development? Large corporate beneficiaries or the survival of local communities?

Search This Blog