Chapter

The Impact of International Trade on Manufacturing Employment in India

S.N. Rajesh Raj and Kunal Sen

in Growth, Development, and Diversity

Published in print June 2012 | ISBN: 9780198077992
Published online September 2012 | e-ISBN: 9780199081608 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198077992.003.0011
The Impact of International Trade on Manufacturing Employment in India

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This chapter analyses the impact of India’s external trade on employment in the post-liberalization era. It arrives at the conclusion that although India’s exports have increased, they have not had any noticeable impact on employment. The chapter attributes this pessimistic finding to the skill-intensive nature of India’s exports, shedding of excess labour by most firms in the manufacturing sector, and growth in labour productivity. The incorporation of the informal manufacturing sector in the analysis of the impact of trade on employment is an important feature of this chapter.

Keywords: Trade-employment-informal sector-labour shedding; external trade; employment; manufacturing; exports

Chapter.  8621 words.  Illustrated.

Subjects: Economic Development and Growth

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