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Impact of ICT Usage on Productivity of Unorganised Manufacturing Enterprises in India

Author

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  • Mitali Gupta

    (Institute for Studies in Industrial Development (ISID))

  • Manik Kumar

    (National Institute of Rural Development and Panchayati Raj (NIRD&PR))

Abstract

The boom of ICT which started during late 1990s in the USA has now spread to the whole world and is not only altering the way the production process is carried out but also enhanced productivity levels of the enterprises. India’s growth is largely ICT-led growth as witnessed in the case of services sector; however, for the growth of the manufacturing sector, ICT diffusion is required which is in lieu of the fact that at the global level, the manufacturing sector is witnessing an increased share of ICT enabled vis-a-vis core production activities. The large firms have largely succeeded in terms of adoption of ICT infrastructure, but difficulties lie with the small firms which have been comparatively slower in this process over the period of time. In this context, this paper attempts to assess the extent of ICT diffusion across small enterprises and the impact of ICT usage on firm and labour productivity, based on unit-level data from 67th (2010–2011) and 73rd (2015–2016) rounds of NSSO. The findings reveal that ICT usage is not only beneficial for the large firms but also beneficial for the smaller firms alike, which calls for a prompt policy action towards their upgradation in this regard.

Suggested Citation

  • Mitali Gupta & Manik Kumar, 2018. "Impact of ICT Usage on Productivity of Unorganised Manufacturing Enterprises in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(2), pages 411-425, June.
    • Handle: RePEc:spr:ijlaec:v:61:y:2018:i:2:d:10.1007_s41027-018-0134-3
    DOI: 10.1007/s41027-018-0134-3
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