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Interplay of Technology and Labour Productivity: Emerging Story of Consumer Electronics in India

  • Bino PaulEmail author
  • Mansi Awasthi
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Abstract

During last two decades, consumer electronic industry in India appears to have been treading through a nonlinear path that has been shaped by changes in trade policies, globalisation of disruptive technologies, strands of product and process innovations, location of investments and the dynamics of consumption. This industry faces an interesting conundrum. On the one hand, the market for consumer electronics in India has been growing exponentially over the years, thanks to discernably lower penetration rates compared to that of developed countries. On the other, despite the growth in market being a regular phenomenon and ensuing business interest shown by prominent multinational enterprises, domestic production system appears to have been inheriting a gene of not so evolved technological capabilities, thus capital accumulation not translating into gains in productivity. We unravel this dilemma by analysing the unit records of Annual Survey of Industries, covering the data from 2000–2001 to 2013–2014. We use descriptive and inferential methods to unravel the data, while being complemented by the meta-content made of media coverage on consumer electronics in India. In our empirical exploration, we resort to both single and simultaneous equation models for gauging the link between the productivity and the technology. We conclude that while the market has been expanding in India, this growth has not translated to technological capabilities for the domestic industry.

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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.School of Management and Labour StudiesTata Institute of Social SciencesMumbaiIndia

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