Indian Industry Needs Innovation, Not Mindless Toil

Despite progress India still primarily utilizes low-cost workforce instead of establishing technological advancements in the industrial sector. Weighing too heavily on a low-wage workforce approach has resulted in unscrupulous employee treatment along with flattened market competitiveness and retarded national development. India maintains its surplus value generation strategy through increased work duration instead of investing in productive production techniques like other developing nations.

The Problem of Over-Reliance on Cheap Labour

• According to the Periodic Labour Force Survey (PLFS) 2023-24 data only 21.7% of Indian workers maintain regular salaries.

• The majority of workers function without any protection from formal agreements and lack access to paid vacation benefits or retirement security provisions.

• The factory workforce works 11-12 hours on a daily basis under a time-consuming labor-intensive system which neglects efficiency in favor of excessive manual labor.

• The United States along with Japan demonstrate fewer working hours with much higher performance levels than emerging economies.

Labour Exploitation and Industrial Practices

• The combination of unregulated operations by Indian businesses has led to the transfer of production activities from regulated enterprises to unregulated workplaces.

• More than 70 percent of the manufacturing workforce in India works at unregistered small enterprises where employees frequently experience unfavorable working environment conditions.

• Large corporations postpone payments to small enterprises so that it diminishes the financial stability of such business owners.

• Employment through contractual agreements makes up 56 percent of factory worker additions from 2011-12 onward thus weakening job stability while decreasing employee earnings stability.

Rising Profits but Declining Worker Welfare

• Industrial corporations continue to achieve growing profits alongside deteriorating circumstances for their workers on the job.

• Corporate profits in India's factory sector rose from 31.6% in 2019-20 to 46.4% in 2021-22, largely due to cost-cutting on wages.

• Unclear wages in workers' pockets diminish home market spending which creates a downward spiral for industrial development rates.

• The industrial backbone of migrant workers continues to face disadvantages because they have no access to social security benefits and fair compensation.

Global Competitiveness and Stagnation in Key Sectors

• Stagnation exists in the garment industry because India refuses to update its manufacturing methods.

• The global market share of garment exports for India stands at 3.1% even though it has abundant labour resources available yet Bangladesh, Vietnam and China have now surpassed them.

• Indian businesses have been unable to expand operations because they did not invest in technology advancements and new innovations.

The Need for Innovation-Driven Growth

• Cheap labour practices prevent local industries from coordinating automation advances and artificial intelligence as well as sophisticated manufacturing practices.

• Successful emerging economies together with developed nations make productivity their main focus instead of continuing to have an abundance of workers on staff.

• A contemporary industrial strategy requires three main priorities:

• A worker training program exists to boost employee productivity levels.

• Manufacturers need to accept technological advancements to enhance their operational efficiency levels.

• The government should enact better MSME policies that break supervisory relationships which harm suppliers.

Long-Term Economic Implications

• Current economic patterns cannot be sustained because continuous labor oppression leads to economic growth stopping eventually.

• Technically unskilled workers both earn less pay and face worse treatment at work which prevents them from driving domestic market growth through routine consumption.

• Uninnovative approaches in the future will reduce India's international prestige across research areas such as IT and manufacturing and engineering domains.

Conclusion

The industrial sector of India requires modernization through technological improvements instead of continuing labor exploitation practices. Employment of workers at minimum wages generates financial profit quickly but innovation stands as an absolute necessity for sustainable future growth. Indian economic success in sustainable development and global competitiveness depends on recognizing this fact as soon as possible.