Wage determination in Indian manufacturing, 1950 to 1964

Abstract

The usual dilemma before a developing country seems to be having to choose between the com - peting objectives of social justice and economic growth. However, this paper claims that a judicious balance can be found in a situation of rising productivity which may lead not only to a higher rate of capital formation but also to a reasonable standard of living for the workers who can secure this by being organised. It is argued here that the wage variation in the Indian manufacturing sector has been influen - ced by increase in productivity. Yet, there is need for a wage policy which not only provides for an equitable sharing in the gains of productivity but also ensures the containment of inflationary pressures in the economy.