Subcontracting Linkages in the Informal Manufacturing Sector in Uttar Pradesh

Udai Bhan Singh ()
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Udai Bhan Singh: Yunus Social Business Centre, Amity Business School, Amity University Rajasthan

A chapter in Development Challenges of India After Twenty Five Years of Economic Reforms, 2020, pp 261-277 from Springer

Abstract: Abstract The study examines the subcontracting dynamics of informal manufacturing enterprises in Uttar Pradesh using nationally representative NSSO data of non-agricultural enterprises between 2010 and 2016. The results show that the incidence of subcontracting has decreased in rural areas among own-account enterprises and establishment (2–5 worker) category but it has increased in urban areas among these enterprises during the study period. There is negligible evidence to show that workers are much more efficient and productive in firms involved in subcontracting as compared to non-subcontracted enterprises. Rather, the study found that subcontracted enterprises created more jobs than non-subcontracting ones. It also found that the gross value addition (GVA) per worker in more than three-fourth subcontracted enterprises is below notional income, which indicates that a majority of labour-intensive enterprises come into the subcontracting system only as means for survival.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-15-8265-3_14

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DOI: 10.1007/978-981-15-8265-3_14

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