Pattern of Growth of Unorganised Manufacturing Enterprises in India: A State Level Analysis

Abstract

This paper examines the growth of employment and gross value added (GVA) in the unorganised manufacturing sector of India across different states and union territories (UTs) using four rounds of National Sample Survey Office (NSSO) data from 2000 to 2016. The paper matches the data according to the National Industrial Classification of 2008 to ensure comparability. The paper finds that most of the states/UTs experienced job-loss growth, while only five states experienced job-less growth. It also finds a positive and significant relationship between the growth of employment and GVA, supporting Kaldor’s hypothesis. It suggests some policy measures to enhance the growth of GVA and employment in this sector, such as linking the entrepreneurs with various markets, identifying clusters of skill sets, and encouraging subcontracting from big firms.