Labour Absorption in Indian Manufacturing- The Case of the Garment Industry

Azim Premji University,


A striking feature of the Indian economy has been the relatively small contribution made by the manufacturing sector to the country’s Gross Domestic Product (GDP) and, more importantly, to employment. In 2013, manufacturing accounted for only 16.5 per cent of India’s GDP, compared to 29.7 per cent of China’s.3 According to the National Sample Survey (NSS) on Employment and Unemployment, India’s manufacturing sector provided employment to 61.3 million in 2011-12, which was only 13 per cent of the country’s total workforce of 472.5 million in that year.


  • Jayan Jose Thomas
  • Chinju Johny