Factor Income Shares in India, 1970-71 to 1999-2000:What do the Trends in the 1990s Reveal?

The study examines the trends in the factor income shares for the period 1970-71 to 1999-2000, focussing on the fall in proportion of labour income to the Net Domestic Product in the 1990s, a decade which witnessed substantial, yet gradual internal and external economic liberalisation. Though the sectoral income and employment share of the primary sector has fallen throughout the three decadal period, the rising share of labour income received a set back in the 1990s. This movement is due to decline in labour income shares in high wage activities as well as low wage sub-sectors like construction, trade, hotels and restaurants and transport.