As Automation in India Increases, So Does Inequality

Factory Visit

A new research paper finds that as the capital intensity of production grows, the share of workers’ wages in national income has fallen sharply. In the paper, Radhicka Anand – an economist with the Indian Council for Research on International Economic Relations – looks at the impact of the increasingly capital intensive production that has been characteristic of post-reform India’s manufacturing sector. Based on Annual Survey of Industries (ASI) data, she analyses the effect of current modes of manufacturing production on inequality. Anand’s study is focussed on formal sector manufacturing, responsible for 65% of all manufacturing output but only 10% of all manufacturing sector employees.

Read the full article in The Wire