Indian Journal of Industrial Relations

1. Anshul Aggarwal And Chandan Sharma – Indian Institute Of Management Lucknow, India

Received
03-Jun-2023
Accepted
-
Published
03-Jun-2023
Abstract
This study investigates the impact of international trade and the ‘Make in India (MII)’ campaign on firms’ performance and labor outcomes. For this purpose, the study deploys prudent econometric techniques such as panel estimation and difference-in-difference estimator on Indian plant-level data. International trade is found to be enhancing firms’ performance and leading to employment generation but having a diminishing impact on wages. MII campaign is found to be positive but marginally contributing to improving employment, wages and firms’ revenues. The study observes international trade as a trade-off between ‘employment generating industrial growth’ and falling wages. MII compensates for the loss in wages due to trade, indicating the potential labor-centric nature of the campaign.
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