Productivity and Wages in Indian Industries

Productivity and wages plays an important role in the economic development and ultimately determines the standard of living in the country. In a developing economy like India the wage policy is facing a real conflict between the need of the workers for larger consumption and the demand of the economy for higher rate of capital formation. The increasing productivity and its linking with wages is the best option available. The book examines the relationship between productivity and wages in selected industries of organised manufacturing. In this endeavour, the book examines (a) the trends in productivity (b) the trends in distribution of productivity gains (c) the trends in factor compensation (wages and rate of return). The book pleads that wage increase beyond a level should conform to productivity levels and should consider the interest of consumers, the industry and the economy. The book argues that the wage-productivity relationship should be such that it can result in a circular self generating mechanism where increase in productivity leads to an increase in wages and increase in wages motivates the workers to further increase the productivity. The book will be useful for policy makers, researchers in the field of productivity, businessmen and for all those who are interested in saving the country from high cost economy.