Productivity of Unorganised Manufacturing Enterprises in India

Since unorganised manufacturing enterprises (UMEs) provide employment to a huge mass in India therefore its growth and productivity is a matter of concern. Thus, through this paper the growth and productivity of Indian UMEs are shown with the help of NSSO Data (67^th and 73^rd Rounds). This paper reveals that the number of UMEs increased significantly in India during 2010-11 to 2015-16. The average productivity of labour increased over time. Using the Cobb-Douglas production function it was further found that the marginal productivity of labour is much higher than the marginal productivity of capital. Productivity is found to be positively and significantly influenced by male ownership, own account enterprises, enterprises do not face problem, expanding status of growth, government assistance, registration of enterprises and capital intensity.

The number of UMEs, employment and GVA increased during 2010-11 to 2015-16. Productivity is influenced by different characteristics of UMEs and their status of growth.