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

Grueling summer ahead: Cuttack’s alarming health trends and what they mean for Odisha

By Sudhansu R Das The preparation to face the summer should begin early in Odisha. People in the state endure long, grueling summer months starting from mid-February and extending until the end of October. This prolonged heat adversely affects productivity, causes deaths and diseases, and impacts agriculture, tourism and the unorganized sector. The social, economic and cultural life of the state remains severely disrupted during the peak heat months.

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman* The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat* The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

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.

The cost of being Indian: How inequality and market logic redefine rights

By Vikas Gupta We, the people of India, are engaged in a daily tryst—read: struggle—for basic human rights. For the seemingly well-to-do, the wish list includes constant water supply, clean air, safe roads, punctual public transportation, and crime-free neighbourhoods. For those further down the ladder, the struggle is starker: food that fills the stomach, water that doesn’t sicken, medicines that don’t kill, houses that don’t flood, habitats at safe distances from polluted streams or garbage piles, and exploitation-free environments in the public institutions they are compelled to navigate.

Why India must urgently strengthen its policies for an ageing population

By Bharat Dogra A quiet but far-reaching demographic transformation is reshaping much of the world. As life expectancy rises and birth rates fall, societies are witnessing a rapid increase in the proportion of older people. This shift has profound implications for public policy, and the need to strengthen frameworks for healthy and secure ageing has never been more urgent. India is among the countries where these pressures will intensify most sharply in the coming decades.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor* Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

Proposals for Babri Masjid, Ram Temple spark fears of polarisation before West Bengal polls

By A Representative A political debate has emerged in West Bengal following recent announcements about plans for new religious structures in Murshidabad district, including a proposed mosque to be named Babri Masjid and a separate announcement by a BJP leader regarding the construction of a Ram temple in another location within Behrampur.

Search This Blog