MEASURING LABOUR AND CAPITAL PRODUCTIVITY IN ORGANIZED TEXTILE SECTOR OF INDIA IN POST-REFORM PERIOD

Abstract

The paper examines the issue related to the measurement of labour productivity in the organized textile sector of India. The study using ASI data between 1991- 92 to 2014-15, estimated the trends in labour productivity, capital productivity. The paper also explores the relationship between capital intensity and labour productivity. Analysis reveals that in the post-reform period, there is substantial acceleration in labour productivity in the post-reform period. The results also reveal that capital productivity has shown dwindling trends in the organized textile sector of India. Moreover, capital intensity has been found as a significant factor influencing labour productivity. The relationship between capital intensity and capital productivity was found negative. The growing capital intensity in the textile sector, suggests that the sector is getting modernize.