There has been strong evidence of deindustrialisation, particularly in the sense of
negative employment growth in the registered sector, in most of the industries in India
during the 1990s and thereafter. This paper attempts to examine how employment growth
is related to the productivity growth and wage growth empirically with Indian data from
registered manufacturing industries across the major states by utilising data provided by
the Annual Survey of Industries (ASI). The study observes significant regional disparity
in industrial growth in India although the incidence of unevenness declined at a very slow
rate. Structural change occurred in Indian industries in favour of capital, but at an uneven
rate across the states. Capital labour ratio increased not only because of higher
employment of capital but because of the displacement of workers as well.