Author(s): Anjali Tandon

Publishers: Routledge

Pages: 196

2023 First Edition

ISBN: 9781032291772

Labour and Capital Use in Indian Manufacturing: Structural Aspects


This book strengthens our understanding of Indian manufacturing. It argues that structural transformation should be guided by the given factor endowments. The book undertakes detailed empirical scrutiny to provide inputs for guiding the future industrial policy in India.

The book recognises the differential structure of organised and unorganised manufacturing with their distinguished response to the use of labour and capital. The analytical framework consists of an economy-wide approach and structural relationships at the industry level. The underlying sectoral interdependence highlights the job creation potential of domestic manufacturing, which spreads into the non-manufacturing sectors through the essential accounting of the embodied effects. The impact of import utilisations underscores the leakages in the domestic economy in terms of the employment forgone and capital use, thereby highlighting the need to strengthen domestic production. The book clearly identifies the labour- and capital-intensive categories of manufacturing for empirical investigations.

A comprehensive read on labour and capital use in Indian manufacturing, this book in the series Sustainable Industrial Development will appeal to scholars and researchers of economics, applied industrial economics, Indian economy, and business studies. It will also be of interest to professionals and practitioners in policy circles and research think tanks.



Anjali Tandon is Associate Professor at the Institute for Studies in Industrial Development, New Delhi. Her research focuses on energy, international trade, and industry in a multisectoral framework. Her long experience in consulting projects and publications ranges across energy economy, export diversification, FTAs, agriculture subsidies, and allocative efficiency. Her applied work majorly involves input–output analysis and CGE modelling. Her earlier co-authored book Measuring Structural Change and Energy Use in Indian Economy was published in 2019.


Table of Contents

Chapter 1 Structural transformation and Indian manufacturing 1

Chapter 2 Analytical approach and database 16

Chapter 3 Labour use as a factor of production: Accounting for indirect use 29

Chapter 4 Capital use in production: Recognising the indirect effects 58

Chapter 5 Relative use of capital and labour as factors of production 84

Chapter 6 Structural patterns of factor endowments 96

Chapter 7 Structural relationships of factor endowments 119

Chapter 8 Key findings and policy implications 137