Growth and dynamics of unorganised industries in Punjab

The relatively small size and limited bargaining power of small-scale units raised concerns about the survival of these units in a competitive environment. It was feared that these, mainly the unorganised ones, would be wiped-off completely unless they were given some protection in the rapidly globalising economy. But, the experience of unorganised manufacturing units has been quite different. These units expanded in terms of their contribution to employment and output. The study establishes the distinct emergence of unorganised industry in Punjab, in terms of employment, capital used and labour productivity, in sharp contrast to the scenario in other states. It further explores the structure of Punjab's unorganised industry along with examining the inter-industry patterns of growth. It also delves into the factor-use pattern through an analysis of labour mix, factor allocation and factor productivity. The study points out the existence of various impediments in the growth path of Punjab's unorganised industry. Therefore, there arises a serious need to curb these impediments if the policy makers are really interested in enabling Punjab's unorganised industry to realise its potential in the fast globalising competitive environment.