Developing country governments often launch new agricultural programmes without collecting pre-implementation survey data, making it difficult to evaluate the effects of such programmes. Leveraging the flexibility of granular pixel-level satellite panel data and a well-developed quasi-experimental policy evaluation design, we study a programme where pre-implementation data is unavailable. We estimate the effect of cash transfers on agricultural productivity in Telangana, India. Treatment and control regions are within 10 km on either side of the state border. They are identical in all respects except for the difference in exposure to policy treatment. Agricultural productivity increased in the major monsoon cropping season due to the cash transfer programme. The findings also reveal that cash transfers helped reduce productivity gaps between irrigated and rainfed agricultural areas. Our results are robust to two different sources of satellite data, three alternative indicators of productivity, two rounds of full-scale resampling, 100 rounds of small-scale resampling and three alternative border designs. Placebo regressions of two previous years also confirm our results. This approach to policy evaluation is applicable anywhere satellite data are available in the world.

Authors: Muddasir Ahmad Akhoon, Abhishek Shaw, Vidya Vemireddy

The author is interested in examining the process of introduction of reforms to explain why the same set of reforms failed to translate into growth in the 1990s in India but have had successful impacts on the economy in later political regimes. In particular, he wants to frame the process of introducing reforms within the socio-political context in India which brings unique challenges and political constraints. This book chapter intends to assess how political capacity and institutional mechanisms are key to understanding why reforms have failed in certain contexts.

In this paper, the researchers revisit the relevance of the agrarian question of capital and provide evidence of the dynamism in agriculture based on an empirical enquiry. They study the possibilities, channels and patterns of agrarian accumulation and its spillover on the nonagrarian accumulation dynamics in an agriculturally advanced region lying in central India. Based on this empirical study, they posit that the agrarian question of capital remains important at a regional scale in India. By bringing the focus back on the question of capital, the paper maps the contemporary agrarian change processes as being linked to the process of generation of agrarian surplus and contributes to the debate on the relevance of the agrarian question of capital in the Global South.

Authors: Sunit Arora, Deepak K Mishra

This article examines rural transformation in India through a review of longitudinal village studies conducted over the past three decades. It argues that rural India is not undergoing structural transformation in the classical sense. While labour is steadily moving out of agriculture, this shift has not led to higher productivity in agriculture or the development of a robust rural nonfarm economy. Instead, what unfolds is a process of deagrarianisation, driven by out-migration of male workers to cities where they engage in informal nonfarm employment. This transition is uneven and remains deeply embedded in existing hierarchies of caste, class, and gender, which shape both access to opportunities and outcomes. By identifying common patterns across diverse regional contexts, the article shows how village studies provides a grounded perspective on the nature of rural change.

Author: 
C.R. Yadu

Reducing gender disparities in workforce participation is an important policy goal in several developing countries. India, in particular, has historically had low levels of women’s workforce participation as compared to men and as compared to peer economies. Prior research has identified both supply and demand-side explanations for low levels of women’s participation in paid work. On the supply side, social norms constraining women’s mobility and autonomy are commonly invoked as one explanation. We test the relevance of such norms in explaining heterogeneity in women’s employment using district-level data from the National Family Health Survey (NFHS) 2015 – 16 and the Sixth Economic Census (2013). Norms indices are constructed using Principal Components Analysis for 640 districts of India. The findings indicate that less restrictive norms related to decision-making, mobility, and asset ownership are positively correlated with higher levels of women’s employment.

Authors:

Subhapriya Chakraborty and Amit Basole

The Shakti scheme, launched by the Government of Karnataka in June 2023, represents one of the most ambitious efforts in India to reimagine welfare by providing free public transport for women. Unlike welfare programmes based on targeted cash transfers, this scheme redefines inclusion through the provision of a universal, non-cash public service mobility. This report is an assessment of the evolution of the scheme with specific regard to the BMTC’s experience. In the period studied– January 2023 to March 2025, covering both pre- and post-implementation phases – the scheme generated a significant surge in bus usage across the state. With more than 2.89 crore trips recorded, a striking transformation in mobility patterns was observed. Importantly, women riders quickly outnumbered men on many of the busiest routes– especially in the Central Business District, reflecting a major shift in access to and usage of public transport. The ridership gains were particularly sharp in the first six months following the scheme’s launch and have since stabilised, indicating a sustained and regular usage pattern among women. The report is divided into three sections. In the first, the researchers discuss state-level free travel schemes. They address certain questions about Karnataka’s experience within wider debates about universalism versus targeting in social policy. In the second, they discuss the report, its methods and findings. In the final section, they discuss some potential paths forward.

In this chapter, the researchers critically examine the emancipatory role of neoliberalism with a focus on women’s work in India. They argue that the multi-pronged crisis afflicting the labour market is a fallout of the implementation of the neoliberal project in India that had severely impacted women workers, who typically are one of the oppressed sections in society. They argue that neoliberalism leads to the proliferation of social orthodoxies that promote patriarchal gender contracts whereby men are the primary breadwinners while women are mainly responsible for social reproduction in the ​‘domestic’ space.

They highlight that the neoliberal regime in India is associated with declining participation in paid work for women workers, notwithstanding the rapid growth rate of the Gross Domestic Product (GDP) that the economy has been witnessing. This is in the backdrop of India having one of the lowest rates of participation in paid employment of women workers. They claim that women’s work participation in India is affected by the production conditions in Indian agriculture and the burden of unpaid care work. However, increased participation in paid work — the quantitative dimension — does not necessarily lead to women’s empowerment under neoliberalism. This is largely due to the proliferation of the informal sector, which has been the major source of paid work for women workers. The researchers contend that women workers encounter two layers of subordination and control in the labour market that become acute in the informal sector, which is associated with a lack of worker’s rights. They are subordinated, first, by the dominance of capital and, second, by the patriarchal social order. These, in turn, adversely impact the quality and economic value of women’s work. They argue that the degradation of the economic value of women’s work has led to the accentuation of the gender bias that endangers the chances of survival of the girl child in a society characterised by deep-rooted patriarchy.

The contemporary precarity of women’s work — in terms of quantity and quality of work — also reflects the existing social orthodoxies that loom large in the private and public domains in India. Lastly, based on the latest Periodic Labour Force Survey database, they argue that the COVID-19 pandemic has widened the structural inequalities in the economy and added a layer to the existing vulnerabilities of women workers.

Authors: Mampi Bose, Shantanu De Roy

The Indian economy, despite registering high growth, is characterised by a persistent and vast informal economy. Using it as an illustration, the researchers draw lessons for characterising labour markets in contexts of high informality. They employ a group-based statistical modelling method to identify whether there exist systematic patterns in the high volume of worker transitions across different employment arrangements. Using panel data for eight points between 2017 and 2019, they identify seven dominant labour market trajectories. The trajectory capturing stable formal salaried employment, with highest average earnings, accounts for only 6.7% of the sample. None of the dominant trajectories denote a job ladder from informal to formal work, and the sorting of individuals into informal trajectories is far from voluntary, indicating an existence of formal and informal segmentation. The most populous trajectory, comprising 38.4% of the sample, with second highest average income (although half of that of the formal salaried trajectory), is stable self-employment, followed by the trajectory representing transition within different forms of informal wage work at 27.2%. Most trajectory groups associated with informal wage arrangements have high flux, indicating lack of stability. Furthermore, trajectories associated with informal wage employment have even lower earnings than those with informal self-employment. Far from suggesting a desirability of informal self-employment, this is indicative of a breaking down of the expected voluntary transition from self to wage employment in the transformation process. Additionally, access to trajectories is stratified along various correlates, especially caste. Caste hierarchy operates most starkly at the node of accessing the trajectories, while in terms of penalties or gains in earnings, traditional caste-hierarchy may not always operate uniformly. The findings disrupt the standard expectation in structural transformation models and labour market theories, while highlighting the need to foreground evolving nature of informality in labour market models for developing economies.

Authors: Rosa Abraham, Surbhi Kesar

Reflecting a longstanding intellectual heritage in Marxist political economy, contributions to agrarian studies have variously referred to the production, distribution and extraction of value. Despite this central role within the heritage of agrarian studies, the concept of value is often used inconsistently between authors and sometimes deployed without clear elucidation of the underlying theoretical tenets. As such, value often tends to be used more as a metaphor suggestive of conditions of exploitation rather than a detailed conceptual framework. In response, we must ask if there is still a robust case for value analysis forming a foundational pillar of agrarian studies? To address this challenging question, we invited three authors to give their perspective on the value of value for agrarian studies. First and foremost, we asked them to consider what value analysis does that is otherwise missed in critical agrarian studies and how we can mobilise its potential to sharpen analyses. Two further pivotal questions arise, spurred on by recent trends in the literature. First, to what extent do the categories of value enrich or hinder our evolving understanding of the dynamics of social reproduction within agrarian households and communities, including the gendered relations through which agriculture and livelihoods are performed? Similarly, are the largely anthropogenic concepts of value fit for the purpose of explaining environmental change and the more-than-human dynamics through which agricultural landscapes are produced and change over time?

Authors: A Haroon Akram-Lodhi, Srishti Yadav, Alessandra Mezzadri, Marcus Taylor

This article aims to understand the methodological position that Marx takes in Capital Volume 1 and the implications of that on the individual units in his analysis. With the understanding that Marx adopts a fundamentally holist methodological standpoint, the article outlines how the individuals within classes and the system of capitalist production are measured and contextualised. This question is answered by examining Marx’s Capital Volume 1 as the primary text. Where relevant, the researcher engages with Marx’s intellectual background and tradition. The individual units discussed in this study are the commodity, the worker and the capitalist.

This article examines how the concept of the representative individual emerges through averaging and how this process unfolds in Marx’s Capital, shaped by his methodological approach. The article illustrates the method of averaging in Marx, through his intellectual engagement with Quetelet as it also focuses on Hegel’s influence on Marx’s method and elaborates on the parallels and divergences between them. With the given engagement with Capital and Marx’s intellectual interactions, the researcher arrives at a specific understanding of holism that can be attributed to Marx in Capital Volume 1.

Author: Sushmita Rama Subrahmanyam, Student, MA in Economics (2024−2026)

The consolidation of agricultural lands by dominant socio-economic groups is discussed in the context of contemporary debate on the land question by foregrounding market-led land transfers as a driver of accumulation in rural India. Empirically rooted in central India, the paper studies the commodification and increasing concentration of land as an outcome of the processes of agrarian change at work. 

The nature and extent of the under-representation of marginalised caste groups in enterprise ownership in India are examined. It is found that exclusion takes place in three distinct stages. First, the share of Scheduled Caste (SC), Scheduled Tribe (ST) or Other Backward Class (OBC) individuals in ownership of any enterprise is less than their share in the workforce. Second, among those who do engage in entrepreneurial activities, a disproportionately higher share of entrepreneurs from the marginalised identity groups are engaged in enterprises, which are not purely commercial and are likely to be subsistence-oriented. And finally, even within the owners of purely commercial enterprises, those from marginalised groups tend to be concentrated in the smaller enterprises and are severely under-represented in the larger and more productive ones. 

Caste and class are two major markers of social and economic stratification in India. They play a crucial role in sustaining and strengthening the process of social exclusion. It has been often expected that the process of economic growth and modernization may weaken the congruence between caste and class structures and induce social and economic mobility, thereby bringing about a change in the socio-economic environment. In this paper, we focus on the celebrated period of high economic growth in India during the previous decade to study the evolution of caste-class dynamics, to analyse the pattern of association between caste and class positions, and examine whether this association/​congruence has weakened during this period. The analysis is based on four rounds of employment-unemployment surveys of the National Sample Survey Organization covering the period 1999 – 2012. We construct a matrix of caste and class positions of repeated cross-sections of individuals that shows whether different caste groups are over- or under-represented in different class positions and how these representations have changed over time. We then use a multinomial logistic regression framework to capture the role of caste in explaining the conditional probability of an individual to belong to a particular class position, after controlling for other critical explanatory variables. We further examine how the explanatory role of caste has changed over time. Additionally, we explore the role of education, a crucial channel for socioeconomic mobility, in explaining the class positions of individuals belonging to different caste groups over time. Finally, we examine the impact of high economic growth in determining the class position of an individual in general, as well as for different caste groups over time. The analysis shows that caste has continued to remain an important factor in explaining class locations of individuals during the period of high economic growth. Further, the caste-class associations have continued to persist across different categories of education over time. While there has been a partial weakening of certain associations during the period, particularly for the Other Backward Castes and in some parts of the rural sector, the overall picture is more of continuity than change, with further strengthening and reinforcement of caste-class congruence along several axes. This calls into question the expectations about social mobility with economic growth as well as the nature of economic growth in India.

Author:

Vaishali Kohli

Economic Policy in Independent India provides an immersive, accessible yet rigorous understanding of the Indian economy through a political economy analysis of economic policies. It provides a birds-eye view of the politics, context, and ideas that shaped major economic policies in independent India and argues that they are the product of crisis, coalitions, and contingency — not necessarily choice. Each chapter focuses on specific political regimes: Colonial Rule, Jawahar Lal Nehru, Indira Gandhi, liberalisation under coalition governments, the UPA Government, and the NDA Government. The book evaluates how well a government executed its policies based on the economic and political constraints it faced, rather than economic outcomes. Using theories to make sense of the economy, political ideology, historical conditions, and international context, the book’s framework provides multiple perspectives and analyses economic policies as an outcome of interactions between dynamics in the economy.

The Indian story of economic growth and structural transformation has been one of significant achievements as well as continuing challenges. On the one hand, the economy has grown rapidly since the 1980s, drawing millions of workers out of agriculture. And the proportion of salaried or regular wage workers has risen while that of casual workers has fallen. On the other hand, manufacturing has failed to expand its share of GDP or employment significantly. Instead, construction and informal services have been the main job creators. Further, the connection between growth and good jobs continues to be weak.

Report Files

Full report – download revised pdf file, see corrections sheet for changes made to earlier version.

Executive Summary (pdf)

Results Appendix (spreadsheet)

Figure data (spreadsheet)

All figures (pdf)

Tables (spreadsheet)

Press Release (English | Hindi | Kannada)

Media Coverage (spreadsheet)

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.

Authors:

• Amit Basole
• Dimple Chopde
• Paaritosh Nath

In this entry, the researcher will analyse neoliberal policies and how they have been popularised through the mass media – with a particular focus on market triumphalism. This is an important issue in contemporary times as neoliberal policies have led to an increase in economic inequality. However, public discourse has argued that these policies are beneficial to the economy and workers. The first section will describe the historical trajectory that shaped neoliberal policies. In the second section, the researcher will trace the introduction of neoliberal policies in India in the 1990s and how English newspapers popularised them. In section ​“Sandel’s Critique of Market Triumphalism in America”, the researcher will discuss the popularity of market triumphalism through neoliberal policies in the USA and Michael Sandel’s (What money can’t buy: the moral limits of markets. Penguin, London, 2012) influential critique of it.

Azim Premji University, in collaboration with 9 Civil Society Organisations (CSOs), conducted a survey of 3,000 households in 92 low-income settlements across 39 wards of Bengaluru. The survey was done to estimate the continuing impact of COVID-19 induced lockdowns and economic disruptions on employment and livelihoods. The survey also captured information on access to government support as well as coping mechanisms to deal with such a crisis. Workers in a wide range of occupations such as drivers (cab, auto, and others), daily wage workers (construction and others), domestic workers, and factory workers (garment and others) were surveyed. The survey was conducted in the month of November 2021 with the help of Action Aid, Association for Promoting Social Action (APSA), The Center for Advocacy and Research (CFAR), Hasiru Dala, Gubbachi, Reaching Hand, Sangama, Swabhimaan Trust, and Thamate.

• Download the full report here
• Press release: English | Kannada
• Key Findings: Short | Detailed
• YouTube video of the virtual event held on 4 April, 2022.
• Recording of the in-person event held on 29 March, 2022 in Bengaluru is available here.

Media coverage

– Print

• Bangalore Mirror: Inheritance of Covid losses (30 Mar 22 | Page 1, 8)
• Rajasthan Patrika: तीन फीसदी परिवारों को ही मिला नकद हस्तांतरण योजनाओं का कुछ लाभ : अध्ययन (30 Mar 22 | Page 1)
• The Hindu: Survey finds that Covid-19 impact on livelihoods continues (30 Mar 22 | Page 4)
• The New Indian Express: Urban poor still coping with job, income loss- Report (30 Mar 22 | Page 2)
• Udayavani: Kannada (30 Mar 22 | Page 8)

– Online

• ETV Bharat: ರಾಜಧಾನಿಯಲ್ಲಿ ಕೋವಿಡ್ನಿಂದಾದ ದುಷ್ಪರಿಣಾಮ : ಸಮೀಕ್ಷೆಯ ವರದಿ ಬಿಚ್ಚಿಟ್ಟ ಅಜೀಂ ಪ್ರೇಮ್ಜಿ ವಿವಿ
• Hindustan Times: 3% benefitted from Karnataka govt’s cash scheme
• News9: Bengaluru COVID impact survey- Job, income losses hamper ability of households to recover
• Rajasthan Patrika: कोरोना महामारी : 40 फीसदी ने कम भोजन से किया गुजारा
• The Indian Express: Job and income losses persisted among low-income settlements well past 2020 lockdown- Study
• The News Minute: Job, income losses due to lockdowns continue to impact Bengaluru urban poor

We investigate the impact of the COVID-19 pandemic on income levels, poverty, and inequality in both the immediate aftermath and during the long uneven recovery till December 2021 using high-frequency household survey data from India. We find that the average all-India household income dropped between 30 to 38 percent during the months of the nationwide lockdown of April and May 2020. The subsequent recovery remained incomplete and was unevenly spread over the population even twenty-one months after the start of the pandemic. Households, on average, continued to make 16 to 19 percent lower cumulative income in the post-lockdown period, but have mostly recovered after the second wave in the second half of 2021. Poverty more than doubled during the lockdown and was 50 to 80 percent higher in the post-lockdown period in comparison to the pre-pandemic levels. In the post-second-wave phase, poverty was still slightly higher than in the pre-pandemic period, and any progress in poverty reduction that would have been achieved under normal circumstances over the two years was lost. Inequality too spiked during the lockdown, but returned back to the pre-pandemic levels. Using an event study model we find that the initial shock of the lockdown was more severe for the bottom of the income distribution, but the bottom also experienced a faster recovery. On the other hand, the top end of the distribution experienced smaller declines during the lockdown but they have been slow to recover. The bottom deciles in any period typically constituted households working in contact-intensive, informal, less secure occupations that were hit the hardest during the lockdown, but were quick to recover when the economy opened up. The upper end of the distribution constituted households working in less contact-intensive, formal, secure occupations that were shielded from the sudden shock but were slow to recover.

Authors:

• Mrinalini Jha
• Rahul Lahoti

This paper revisits a part of the analysis by Banerjee et al. (2020), in which they examine the consequences of the nation-wide scale up of reforms to the funds management system (e‑FMS) in India’s national workfare programme, using a two-way fixed effects specification. They report a substantial 19 percent reduction in labour expenditures. We exploit the recent literature that highlights the limitations of the TWFE estimator in the presence of staggered roll out and effect a Goodman-Bacon decomposition of the TWFE coefficient, to pinpoint sources of identifying variation. We undertake a detailed examination of subsamples of six constituent and valid DiDs based on timing of treatment that are averaged into the TWFE coefficient to identify heterogeneity in treatment effects. This disaggregated subsample analysis does not support the conclusion of any reductions in MGNREGS labour expenditures, suggesting that the TWFE coefficient based on the full sample is indeed biased.

Authors:

• Deepti Goel
• J.V. Meenakshi
• Zaeen De Souza

Historical experience suggests that a sustained rise in per capita incomes and improvement in employment conditions is not attainable without a structural transformation that moves surplus labour from agriculture and other informal economic activities to higher productivity activities in the non-farm economy. In this paper, I analyse India’s performance from a cross-country comparative perspective, estimating the growth semi-elasticity of structural change. Using a cross-country panel regression, I estimate the effectiveness of growth in moving workers away from agricultural and informal activities as compared to other developing countries at similar levels of per capita income. I show that the performance in pulling workers out of agriculture is as expected given its level and growth of GDP per capita, but the same is not true for pulling workers out of the informal sector. I also propose the following five indicators that need to be kept track of when evaluating the growth process: the growth elasticity of employment, the growth semi-elasticity of structural change, the growth of labour productivity in the subsistence sector, the share of the organised sector in total employment and the workforce participation rate. Comparing these indicators across periods, states, regions or countries, allow us to understand which sets of policies have worked better than others to effective improvements in employment conditions. When taken together the indicators allow us to set structural change targets as well as to say whether the current pattern of growth is going to be sufficient to meet those targets.

The Covid-19 pandemic has created a need for high frequency employment and income data to gauge the nature and extent of shock and recovery from month to month. Lack of such high frequency household-level data from official sources has forced researchers to rely almost entirely on the Consumer Pyramids Household Survey (CPHS) conducted by the Centre for Monitoring the Indian Economy (CMIE). Recently, the CPHS has been criticised for missing poor and vulnerable households in its sample. In this context, it becomes important to develop a detailed understanding of how comparable CPHS estimates are to other more familiar sources. We examine the comparability of monthly labour income estimates for the pre-pandemic year (2018−19) for CPHS and the Periodic Labour Force Survey (PLFS). Across different methods and assumptions, as well as rural/​urban locations, CPHS mean monthly labour earnings are anywhere between 5 percent to 50 percent higher than corresponding PLFS estimates. In addition to the sampling concerns raised in the literature, we point to differences in the way employment and income are captured in the two surveys as possible causes of these differences. While CPHS estimates are always higher, it should also be emphasized that the two surveys agree on some stylized facts regarding the Indian workforce. An individual earning INR 50,000 per month lies in the top 5 percent of the income distribution in India as per both surveys. Second, both PLFS and CPHS show that half the Indian workforce earns below the recommended National Minimum Wage.

Authors:

• Mrinalini Jha
• Amit Basole

The Centre for Monitoring Indian Economy’s (CMIE) Consumer Pyramid Household surveys have emerged as an important source of regular labour market data for India. Given the differences in methods in data collection between the CMIE and official employment sources, it becomes exceedingly important to establish some comparability between the government and the CMIE datasets. With the release of the official labour surveys, Periodic Labour Force Surveys for 2017 – 18, we now have an overlap between the official datasets and CMIE datasets. In this paper, we examine the extent of comparability of labour force estimates from these two datasets. We find that employment estimates for men are broadly comparable. However, for women, there is a consistent divergence with CMIE estimates of women’s workforce participation lower than that of NSS-PLFS. We explore the points of divergence in the measurement of women’s work and hypothesise some potential reasons for this difference. We find that irrespective of the reference period used in the PLFS estimation of employment statuses, there is no convergence with the CMIE employment estimate for women’s employment. Moreover, the mismatch in CMIE-PLFS estimates occurs across all types of women’s employment and irrespective of what reference period of employment (in official data) is used.

Authors:

• Rosa Abraham
• Anand Shrivastava

We cannot achieve the demographic dividend unless we create jobs for millions of youth. There are multiple forces – thirteen of them identified in this report — working against employment growth in India from both supply side and the demand side. It is proven that large enterprises create very few jobs. Even these few jobs are created for educated youth. Only Micro and Small Enterprises (MSEs) can create large number of jobs across India for workers with wide range of skills and education. Out of a total of just over 63 million enterprises in the MSME sector, 62 million are informal micro and very small enterprises (MSEs). Of these, single worker firms (own-account) are 40 million, firms with 2 to 5 workers are 22 million and firms with more than 5 but less than 10 are estimated at 1 million. 107.6 million workers (97% of all employment in the MSME sector) are in this MSE segment. These MSEs, surprisingly, are more rural than urban — 51% are in rural India. Women-owned firms accounted for 20 % of all enterprises, 16 % of all workers and 9 % of aggregate value-added. There is a huge potential to grow these women owned enterprises. MSEs are the most important segment of the Indian Economy if we want to achieve GDP and Employment growth. Moreover, many of these enterprises are closely aligned with households, particularly in location and ownership. These enterprises play a pivotal role in linking the formal and the informal sector through value chains. We don’t need more micro-enterprises or more single-person firms. Instead, we need to scale-up these existing MSEs. How can we do this? By creating a support system which will make these MSEs go digital, grow in scale and increase their productivity. This will automatically create jobs The Udyog Sahayak Enterprise Network (USENET) proposed in this report is that support system. Why a support system? Because it is not possible to educate millions of the MSE entrepreneurs to become digital experts. Why now? Because India and the world are going digital. In the digital marketplace small can compete better and grow.

Download Policy Proposal Here.

Read media coverage here.

Realising India’s demographic dividend requires a focused policy approach for employment generation. Micro and Small Enterprises (MSEs) can create millions of jobs, across India, for workers with wide range of skills and education. Out of a total of just over 63 million enterprises in the MSME sector, 62 million are informal micro and very small enterprises (MSEs). We do not need more micro-enterprises. Instead we need to help existing MSEs to grow in size. We can do this by creating a support system which enables them to go digital, avail of government schemes, adopt new technologies, and increase productivity. This will create millions of new jobs.

This report is a first of its kind collaboration between Azim Premji University, FICCI, and TISS-Mumbai. It proposes the creation of an Udyog Sahayak Enterprise Network (USENET) at the national level. USENET is a support system for MSEs that will improve Ease of Doing Business for micro and small entrepreneurs. Udyog Sahayak Enterprises will take servcies such as digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional, and national regulation, aiding partnership with digital marketing platforms and digital payment platforms, to the MSEs at their doorstep.

Media Coverage

Press Coverage USENET Report Release
The Times of India: Support system to up ease of doing business
The Economic Times: Azim Premji University, FICCI, TISS, roll out plan for employmenet generation in MSME sector
ETAuto: Policy proposal for employment generation, scale-up in MSME sector
Business Today: FICCI, Azim Premji University recommend 18 lakh Udyog Sahayak Enterprises network to assist MSEs

The Hindu: Draft policy to help grow nano, micro enterprises
The Hindu Businessline: ​‘Set up USENET centres micro, small enterprises’ 

The New Indian Express: Micro firms can create 10.3 million jobs: Report
The Statesman: Azim Premji University, FICCI and TISS form policy proposal for employment generation for MSMEs
Telangana Today: USENET could help MSMEs scale up
The New Indian Express – Edex Live: This network for MSEscan help create 56 million new jobs in 10 years. Here’s how
UNI: Azim Premji University, FICCI, TISS come out with new USENET policy for creating one crore job
The Hans India: Azim Premji varsity, FICCI, TISS roll out plan to generate jobs in MSME sector
SME Times: Report proposes ease of doing biz for MSEs
Nagaland Post: Policy proposal to scale up MSME sector

Author:

• Zico Dasgupta

The efficacy of survey-based policy recommendations is primarily dictated by the quality of data collected in the first place. Is the survey truly representative of the population it claims to characterise? Are respondents voicing their true opinions or are they playing to the gallery? Did enumerator bias creep into the data? These are questions that most users of surveys have, but are typically brushed aside in the race to get the analyses out. While there are no foolproof measures to ensure that survey data are authentic, certain steps can be taken to improve their dependability. One such is the use of what is called ​‘para data’ (data about the process of data collection), to streamline enumerator practices, and thereby improve the reliability of the data being collected. This report details our experience of using para data to improve the quality of the India Working Survey (IWS).

Authors:

• Deepti Goel
• Rosa Abraham
• Rahul Lahoti

Using two rounds of the Periodic Labour Force Survey (PLFS) covering the periods 2017 – 18 and 2018 – 19, we construct a panel of urban Indian individuals aged 15 to 65, and analyse the dynamics of their participation – or non-participation – in the labour force. We construct transition probabilities to study the movement of individuals through three distinct statuses — employment, unemployment and non-participation – at the aggregate level and for different demographic groups. We find evidence of considerable movements from the labour force to non-participation; there exists a significant discouraged worker effect as well as a pronounced movement from employment outside the labour force, specifically for women. A majority of those unemployed in the beginning of the year remain so at the end of the year, indicating the presence of long-term unemployment. The reduction in unemployment rates from 2017 – 18 to 2018 – 19 hides significant weaknesses in Indian urban labour markets. This study represents an original contribution to the field of Indian labour economics, given the paucity of large-scale studies of the dynamics of Indian labour.

Authors:

• Rahul Menon
• Paaritosh Nath

Author:

• Kunal Mangal