Using detailed sectoral data from India KLEMS, we analyze the role of structural change in determining India's aggregate productivity growth during 1980-2011. In general, the impact of static structural change on aggregate labor productivity growth has been positive, as workers moved to sectors of a relatively higher labor productivity level. However, dynamic reallocation effects-worker movement to fast-growing industries-have not been observed. The pro-market reforms in the 1990s did help a TFP growth-enhancing allocation of capital across sectors. The relative importance of the manufacturing sector for aggregate TFP growth has increased in recent years. Yet, India's structural transformation features the absorption of workers in the construction sector and slow and stagnant job creation respectively in services and manufacturing sectors. This poses a challenge, as the potential for productivity growth in construction and services are limited, and the changing nature of manufacturing production provides less room for absorbing less-skilled workers.

Since the 1980s, industrial labor in India has been increasingly informalized, manifested in a rising share of unorganized sector employment and the growing use of temporary and contract workers, and subcontracting in organized manufacturing. Using unit-level data from the National Sample Survey employment-unemployment survey for 2004-5, the paper investigates econometrically whether labor market rigidities and import competition have been responsible for the informalization of industrial labor in India. The results of econometric models show that labor market reforms tend to increase the creation of regular jobs, while import competition tends to raise casual employment among workers with education levels above primary.

Using the latest (2016) version of the India KLEMS Dataset and following the KLEMS approach this paper analyzes growth, structural change and productivity advance in the Indian economy in the period 1980-2014. The KLEMS approach takes into account the roles played by capital, labour, energy, materials and services inputs in output growth by industries. In our analysis, we divide the

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Using panel data for 137 three-digit industries for 1980/81 to 1997/98, the paper examines the effect of trade liberalization on price-cost margins in Indian industries. An econometric model is estimated to explain variations in price-cost margins, taking tariff and nontariff barriers among the explanatory variables. The results indicate that the lowering of tariffs and removal of quantitative restrictions on imports of manufactures in the 1990s had a significant pro-competitive effect on Indian industries, particularly concentrated industries, tending to reduce the price-cost margins. The paper notes that despite the pro-competitive effects of trade liberalization reinforced by domestic industrial deregulation, the price-cost margin increased in the post-reform period in most industries and aggregate manufacturing, which is attributed to a marked fall in the growth rate of real wages and a significant reduction in labor's income share in value added in the postreform period, reflecting perhaps a weakening of industrial labor's bargaining power.