Our faculty, students and researchers work together everyday to contribute to a better world by grappling with urgent problems we are facing in India. We conduct rigorous work to produce high quality learning resources and publications to contribute to public discourse and social change. Here, we feature a sample from our work for everyone to access. You can explore featured resources, policies, and the latest publications from the University.
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Estimating the productivity gap between organised and unorganised small-scale units in India’s manufacturing sector
in Azim Premji University
Small manufacturing firms are considered to be engines of growth and job creation. While most research on small firms focuses on formal sector units, in India informal sector units far outnumber the formal. This is true even for manufacturing units employing 5 to 49 workers, which constitute only 5% of all unorganised units, but in absolute numbers are nine times more numerous than organised units in the same size class. Such firms have the potential to contribute to structural transformation but their capacities vis-a-vis formal firms are not well understood. To address this, the researchers create a unit-level dataset combining Annual Survey of Industries data for organised (formal) units with the National Sample Survey data on unorganised (informal) units. They also discuss problems involved in this exercise and some ways to deal with them. They find that matching organised and unorganised units on observable characteristics reduces the labour productivity differences between them to around 25 percent. The researchers discuss some policy implications of their results.
On the 25th of March 2020, the Prime Minister, Mr. Narendra Modi, announced a nationwide lockdown to stem the spread of the novel Coronavirus, COVID-19. The decision, while imminent, was unplanned and unilaterally made without any consultation with the state governments. This has consequently caught millions of migrant workers and the bureaucracy off-guard, leaving them no time to plan for such an emergency. While millions of migrants successfully reached their home states, only to be quarantined in camps, many remain stranded far from home, with no money or food. We are therefore confronting a lethal combination of crises: health, hunger, sanitation, and trauma, both physical and psychological.