India Ratings and Research stated India will have to raise its labour productivity growth to 6.3% to achieve 8% GDP growth while it has to be up by 7.3% in order to achieve economic growth of 9%. The labour productivity growth in the current financial year has been pegged at 5.2%. Labour productivity during 2004-05 to 2007-08 have stood at 8.5%.
It is 40.4% higher than the level attained in FY19. Given the growth slowdown, it looks unlikely in the near term but is not unachievable. India’s labour productivity growth, like other nations, came under pressure in the aftermath of the 2008 global financial crisis, especially during FY11-FY15 (5.0%). However, it recovered thereafter and grew at 5.8% during FY16-FY19.