Journal of

Advances and
Scholarly
International Journal of
Researches in
Information Technology
and Allied
Management
Education
Vol. VIII,
Vol. Issue No.
3, Issue 6, XI,
February-2015, ISSN 2249-
April-2012,
4510
ISSN 2230-
7540

REVIEW ARTICLE AN
PRODUCTIVITY OF WORKERS AND TRENDS IN INTERNATIONALLY
EMPLOYMENT IN MANUFACTURING COMPANY: INDEXED PEER
REVIEWED &
STUDY TOWARDS
Study MACHINE
of Political TOOL INDUSTRY
Representations: REFEREED JOURNAL
Diplomatic Missions of Early Indian to
Britain

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 International Journal of Information Technology and Management
Vol. VIII, Issue No. XI, February-2015, ISSN 2249-4510

Productivity of Workers and Trends in

Employment in Manufacturing Company: Study
towards Machine Tool Industry

M. D. Sreekumar

Research Scholar, OPJS University, Rajasthan

Abstract – The Indian economy is firmly on the path of steady growth. Even during the last decade when
other countries were in the grip of a massive slowdown, India continued to enjoy a comfortable economic
position. This recent spurt in growth is propelled by radical reforms such as the removal of restrictions
on foreign investment and industrial de-licensing. To keep these concepts in mind this paper focuses
about productivity of workers in a manufacturing company.

Keyword: Productivity, Company, Machine Tool Industry, Manufacturing, Workers

---------------------------♦-----------------------------

INTRODUCTION perhaps 2% of the population and bringing wealth to

many parts of India. At the same time, around 60% of
An industry, which has undergone a radical shift in its the population will remain dependent on the
paradigm thinking, the Indian machine tool industry is agricultural sector, sharing less than one -quarter of
now recognized as a provider of low-cost high quality India’s GDP. Without reform, the agriculture will
lean manufacturing solutions [1-6]. The industry continue to suffer from endemic underemployment,
resiliently supports all its users to enhance productivity low wages and monsoon dependency. This will result
as well as improve competitiveness, for the betterment in continued urban migration, but without the
of the end user [7-8]. The Indian machine tool industry development of an industrial sector this will lead to
is approximately a US$ 500 million industry. There are rising unemployment in the cities. Recognition that
138 major companies manufacturing metal cutting, this pattern is unsustainable is growing.
metal forming, conventional and automated machine
tools. The sector grew by 10 percent in 2002-03. REVIEW OF LITERATURES:
Approximately 6 % of the production is exported.
Exports include CNC lathes, vertical machining The Government of India notified the National
th
centres, grinding machines, etc. Major export Manufacturing Policy on 4 November, 2011 with the
destinations include USA, Germany, China, Italy, objective of enhancing the share of manufacturing in
Mexico, Canada, UK and Brazil. Most manufacturers GDP to 25% within a decade and creating 100 million
have their own in-house R&D and there exists jobs. It also seeks to empower rural youth by
tremendous scope for institutional colworkeration for imparting necessary skill sets to make them
development of new technology. employable. Sustainable development is integral to
the policy and technological value addition in
The structural transformation of the Indian economy manufacturing has received special focus. The policy
over the last three decades has been spectacular is based on the principle of industrial growth in
growth of the services sector, which now accounts for partnership with States. The Central Government will
about 50 percent of the GDP. However, the rapid create the enabling policy frame work, provide
growth of the services sector much before the incentives for infrastructure development on a Public
manufacturing industry attaining maturity is not a Private Partnership (PPP) basis through appropriate
healthy sign. A knowledge -based economy cannot be financing instruments, and State Governments will be
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sustained in the long run unless it is adequately encouraged to adopt the instrumentalities provided in
supported by a growing manufacturing economy. the policy. The proposals in the policy are generally
Moreover, a service economy cannot continue to thrive sector neutral, location neural and technology neutral
on a long-term basis in a country where over 80 % of except incentivisation of green technology.
the population is education below the middle-school
level. Some sectors, such as IT, ITES and One of the instruments in the NMP is the creation of
pharmaceuticals, will compete globally, employing National Investment and Manufacturing Zones
1
M. D. Sreekumar
 Productivity of Workers and Trends in Employment in Manufacturing Company: Study towards Machine
Tool Industry

(NIMZ) as planned integrated industrial townships. Table 2: Manufacturing (number of persons employed
Nine NIMZs have been announced, eight of which are in Millions)
along the Delhi Mumbai Industrial Corridor (DMIC).
Approval, in principle, has been secured for setting up
of the ninth NIMZ at Nagpur. Apart from NIMZs, NMP
also applies to manufacturing industry throughout the
country including wherever industry is able to organize
itself into clusters and adopt a model of self-regulation
as enunciated [1].

Policy instruments for manufacturing industry are

applicable to both NIMZ and Clusters. These include
Rationalization/simplification of business regulations;
simple/expeditious exit mechanism for non-viable
units; Technology development, including green
technologies; Industrial training and skill up gradation
measures; Incentives for MSMEs; Special Focus
Sectors; Leveraging infrastructure deficit and
Government procurement; and Trade Policy [7-10]. Source: Computed from various rounds of NSSO

TRENDS IN EMPLOYMENT IN As seen from the table -2, the decline of number of
MANUFACTURING: persons employed in manufacturing from 56 million
in 2004-05 to 52 million in 2009-10 implies that about
The NSSO conducts periodical surveys estimates inter 4 million workers have withdrawn from the
alia sector wise share of employment based on Usual manufacturing sector during this period despite 6.8
th
Principal and Subsidiary Status of employment. % average growth in manufacturing during the 11
Principal activity status is one on which the person plan. Of this, rural employment accounts for 98 % of
spends relatively longer time during the 365 days the total workers who have left manufacturing. This
preceding the date of survey and Subsidiary Status is also reflected in the decline in rural employment in
refers to the same person who may have pursued absolute numbers, which has fallen from 28 million to
some economic activity during the reference period of 24 million in this period.
365 days. The Table-10 below shows the sectoral
share of employment as compiled from various NSSO CONCLUSION:
rounds, 1987-88 onwards to 2009-10.
Some of the reasons for the decline in rural
During past two decades there has been about 13 manufacturing employment may be the sluggish
percentage point reduction in the employment share in global demand for major export items like textiles,
agriculture despite no increase in manufacturing share handicrafts, leather which are labour intensive. The
in employment. In fact there has been a decrease in massive rural employment generation by MGNREGS
the share of employment in manufacturing between might have bearing on withdrawal of workers from
2004-05 and 2009-10. Though industry (comprising of rural manufacturing. A research study on Tradeoffs
manufacturing, electricity, mining and construction), as of workers between MGNREGS and Manufacturing
a sector has shown an increase in employment shows that the vocationally educated persons in rural
between the same period, this is mainly on account of sector or those who have an acquired skill by
construction, which has grown from 2.3 % in 1987-88 hereditary are more likely to work under MGNREGS.
to 11.4 % in 2009-10. However, service sector has This could also be a contributory reason for the fall in
registered a significant increase in employment of the manufacturing employment in the rural sector
about 7 percentage points between 1987-88 and [11-12].
2009-1.
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Table 1: Sectors Share in Employment
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M. D. Sreekumar
 International Journal of Information Technology and Management
Vol. VIII, Issue No. XI, February-2015, ISSN 2249-4510

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M. D. Sreekumar 3