Explained: Why is India’s labour productivity falling

India’s labour productivity between 2016 and 2018 grew by just 3.7 per cent — a far cry from the annual growth of 14 per cent between 2004 and 2008

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Labour productivity is crucially dependent on businesses investing in knowledge and innovation even as the governments bring about structural reforms that enable such investments to bear fruit. (File/Express Photo by Praveen Khanna)

An analysis done by India Ratings and Research of Annual Survey of Industries data on India’s labour productivity growth in the organised manufacturing sector shows a disappointing trend.