Impact of Wage Rate and Employment Days on Labour Productivity in Dairy Industry in India: An Empirical Analysis

India is the largest consumer as well as producer of milk in the world which holds nearly 25 per cent share in overall world’s milk producers. The dairy industry in India creates huge employment opportunities whether direct or indirect engaging family members in rural areas. There is a growth of 6.6% in dairy Industry over last decade. One of the most important factors which are responsible for growth in dairy industry, particularly in rural areas is labour productivity. Previous studies indicated that labour productivity is much higher in Indian Dairy industry than in the agriculture sector in India. Thus, there is a need to examine the growth of labour productivity in Indian dairy Industry and its possible determinant factors. Hence, the present study is an attempt to study the growth in labour productivity, employment and wage rate in Indian Dairy industry in India. Further, the study aims to explore the impact of wage rate and employment days on labour productivity in aforesaid industry. The secondary data from ASI provided by MOSPI from 2011-12 to 2020-21 of 3- digit NIC 2008(Code- 105) has been taken to achieve the fore mentioned objective. Results indicated that there has been positive association between wage rate, labour productivity and employment in Indian Dairy Industry. Further, it was found that wage rate act as significant factor which determines labour productivity. However, employment was not found to be significant determinant of labour productivity. The study will be helpful for future researchers and policymakers as Dairy industry is one of the main employment generator and poverty reduction measure especially in rural India. Govt. has also been promoting/ supporting it through various schemes. It can be a better alternative for up liftment of rural people and remove disguised unemployment in agriculture sector.