Analysing Growth Paths and Employment Performance of Indian Food Processing Industry: Uncovering Dynamics at the Sub-sectoral Level
Against the backdrop of a potential productivity-employment trade-off, the performance of the Indian Food Processing Industry (FPI) and its sub-sectors, on key employment-related indicators was assessed over two decades (1998-99 to 2017-18). Based on ASI’s 4-digit level dataset on FPI’s 18 sub-sectors, the patterns of output growth were analysed and categorised into extensive, intensive, stagnant and virtuous growth paths. Pooled panel regression-based employment elasticities were estimated across sub-sectors to determine prospects of employment generation. Despite declining employment elasticities for aggregate FPI, prospects for future employment creation were found in the rapidly growing subsectors which exhibited relatively higher employment elasticity of growth. The exploration of sub-sectoral dynamics highlights the need for adequately reflecting on the heterogeneity in employment-related parameters across growth paths and suitably inform policy interventions at a juncture when there has been renewed emphasis from the Government of India to boost employment in the organised manufacturing segment.