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Publication date: 2 December 2024

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Informal Manufacturing and Environmental Sustainability
Type: Book
ISBN: 978-1-83549-998-6

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Publication date: 2 December 2024

Pinaki Das and Akash Dandapat

In the Indian economy, informal manufacturing enterprises play a pivotal role within the manufacturing sector, employing a vast workforce and significantly contributing to overall…

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In the Indian economy, informal manufacturing enterprises play a pivotal role within the manufacturing sector, employing a vast workforce and significantly contributing to overall manufacturing output. While the number of these enterprises has risen over time, the exploration of CO2 emissions from informal manufacturing enterprises is limited, especially in comparison to their formal counterparts. This chapter investigates the relationship between the growth status of informal manufacturing enterprises and their CO2 emission intensity using the latest four rounds of quinquennial unit-level data from the National Sample Survey Organisation (NSSO). The analysis converts expenditure on electricity and fuel and lubricants into quantities, which are then multiplied by respective emission factors to determine enterprise-level CO2 emissions. Findings indicate an increase in the percentage share of expanding and other status enterprises from 2000–2001 to 2015–2016, with other status enterprises being the most CO2 emission-intensive, followed by contracting, expanding and stagnant enterprises. Notably, newer enterprises exhibit lower energy efficiency. Regression analysis further underscores a positive, significant link between growth status and CO2 emission intensity, attributed to outdated machinery and equipment. Urban enterprises, often engaged in subcontracting activities with formal manufacturing industries, show higher CO2 emission intensity. Challenges such as power outages significantly contribute to increased CO2 emissions, highlighting the need for reliable electricity access and a reduction in fossil fuel dependence. This chapter underscores the importance of addressing these issues to align with India's Sustainable Development Goal (SDG) 13 objectives.

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Informal Manufacturing and Environmental Sustainability
Type: Book
ISBN: 978-1-83549-998-6

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Publication date: 2 December 2024

Akash Dandapat, Pinaki Das and Soumita Dasgupta

This chapter conducts a comprehensive examination of the influence of Foreign Direct Investment (FDI) on the manufacturing sector in India, with a particular focus on the informal…

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This chapter conducts a comprehensive examination of the influence of Foreign Direct Investment (FDI) on the manufacturing sector in India, with a particular focus on the informal manufacturing sector's growth and expansion through subcontracting mechanisms. This analysis employs a general equilibrium approach to explore the ramifications of FDI inflows on the dichotomous sectors of manufacturing: the formal and informal. The influx of FDI into the formal sector is identified as a catalyst that propels these firms to enhance production and adjust their factor utilization, which in turn leads to an escalation in contractual employment. However, this surge encounters resistance from labour unions, which compels formal sector firms to enter into subcontracting arrangements with entities within the informal manufacturing sector. This transition proves to be advantageous for the informal sector, witnessing an uplift in both output and employment levels, thereby contributing to a decrease in overall unemployment rates and a potential uptick in wages. Moreover, this pivot towards subcontracting practices is posited to result in reduced carbon emissions emanating from the larger entities within the formal manufacturing domain. This chapter elucidates the dynamic interrelation between India's formal and informal manufacturing sectors as significantly impacted by foreign capital influx, emphasizing the critical role of subcontracting in enhancing the productivity and output of the informal sector. It advocates for governmental policies to support and bolster this interconnection. It also paves the way for future empirical investigations into the intricate dynamics of FDI, subcontracting, and their broader socio-economic impacts on the Indian economy.

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Informal Manufacturing and Environmental Sustainability
Type: Book
ISBN: 978-1-83549-998-6

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Publication date: 2 December 2024

Swapan Kumar Maity and Golam Ahammad

This research paper discusses how the tribal people in their everyday practices uphold the principles of green economy and sustainable development. The indigenous lifestyle may be…

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This research paper discusses how the tribal people in their everyday practices uphold the principles of green economy and sustainable development. The indigenous lifestyle may be far away from the modern amenities, but they are most close to nature. Unlike, in the name of modernism or post-modernism, they are very responsibly self-content and self-dependent. They follow the principle: contentment is the root of all happiness. Thereby without causing irreparable damage to the mother earth, they live a very sustainable life. They know how to devise out day-to-day necessities. They do not always depend on the industry products. Rather they innovate and produce many things through informal and indigenous manufacturing. This research study aims to critically analyze tribal community participation in informal manufacturing for sustainable development and a green economy, and identify areas of concern within this participation. This paper focused upon the particular examples from their household life which promotes sustainable development in its true spirit; and alongside, it follows the path of green economy. The method of this research work was readings in community-based exploration. Alongside indigenous people were interviewed, and their responses were analyzed critically. The researchers also adopted content analysis regarding the studies, statistics and research reports on the community participation of tribal people through informal manufacturing to earn their livelihood. This study highlights that tribal community life aligns well with sustainability and a green economy though some issues exist that can be addressed through strategic government policies and planning.

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Informal Manufacturing and Environmental Sustainability
Type: Book
ISBN: 978-1-83549-998-6

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Publication date: 2 December 2024

Debashruti Jana, Mihir Kumar Pal and Akash Dandapat

Unorganized manufacturing enterprises form a pivotal component of India's socio-economic framework, with the food and beverages micro enterprises (MMEs) standing out within this…

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Unorganized manufacturing enterprises form a pivotal component of India's socio-economic framework, with the food and beverages micro enterprises (MMEs) standing out within this sector. Utilizing secondary data from the National Sample Survey Organization (NSSO) and comparing survey rounds from 2010–2011 to 2015–2016, this study assesses the unorganized food and beverages MMEs' growth dynamics among 25 industries. It examines their status in terms of enterprise numbers, employment share, and Gross Value Added (GVA), alongside estimating the Annual Average Growth Rate (AAGR) across major Indian states based on these parameters. The findings reveal a trend of expansion exceeding stagnation or contraction in both enterprise numbers and per enterprise GVA during the periods studied. Additionally, labor productivity appears to positively correlate with enterprise growth, with establishments and urban-based enterprises showing a higher tendency toward expansion. This analysis demonstrates a significant growth trajectory in the unorganized micro food and beverages sector from 2010–2011 to 2015–2016, marked by increased enterprise numbers, employment generation, and output across major states. This chapterconcludes by underscoring the sector's vital contribution to employment and output generation, offering insights for policymakers and stakeholders focused on fostering this sector's development. This growth trend not only showcases the sector's resilience but also its potential as a driver of socio-economic progress during the observed periods.

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Informal Manufacturing and Environmental Sustainability
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ISBN: 978-1-83549-998-6

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Publication date: 2 December 2024

Shrabanti Maity, Paramita Bakli and Snigdha Sarangi

Kerala reported the first COVID-19 case on January 30. In order to stop the disease's spread in a heavily populated nation like India, the government declared a lockdown on 25…

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Kerala reported the first COVID-19 case on January 30. In order to stop the disease's spread in a heavily populated nation like India, the government declared a lockdown on 25 March 2020. Unexpected lockout caused wages for workers in the unorganised sector to stagnate, which led to reverse migration in India. During the first round of lockdowns organised by COVID-19, 43.3 million interstate migrants working in the informal manufacturing sector actually went back to their homes. This background encourages us to investigate how the COVID-19 epidemic affected male labour employment, with a primary focus on the unorganised manufacturing sector. The study takes into account the employment situation of male CWS in rural, urban and overall India. To investigate the aforementioned objectives, Poirier's Spline function approach has been used in the study. Relying on secondary data aggregated from ‘The Periodic Labour Force Survey’, Annual Report (2018–2019), (2019–2020), (2020–2021), the research comes to the conclusion that the work scenario for male CWS is more negatively impacted by pandemic in urban than rural areas. The paper ends with appropriate policy recommendations.

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Publication date: 2 December 2024

Susobhan Maiti and Chandrima Chakraborty

Over the last four decades – the 1980s, 1990s, 2000s and 2010s – the share of manufacturing in gross domestic product (at current prices) in India has stagnated, whereas the share…

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Over the last four decades – the 1980s, 1990s, 2000s and 2010s – the share of manufacturing in gross domestic product (at current prices) in India has stagnated, whereas the share of services (construction excluded) has increased significantly. The relatively mediocre growth performance of the manufacturing sector as compared to the services sector in India has emerged as a matter of concern. There has been growing recognition in policymaking circles and academia that India needs accelerated growth in the manufacturing industry in the next few decades, so that India's economic growth is led by manufacturing rather than services. In this paper, a comparative analysis of the growth in total factor productivity (TFP) of formal and informal segments of 10 groups of Indian manufacturing industries is undertaken, which is calculated based on KLEMS data obtained from National Accounts Statistics (NAS), published annually by the Central Statistics Office (CSO) of India. The period covered for the analysis of TFP growth is 1980–1981 to 2019–2020, which is broken into four sub-periods. Year wise total factor productivity growth (TFPG) of different industries for the sample period shows a fluctuating growth rate, which includes both positive and negative trends. Decade wise growth and overall TFPG of the different industries also indicate an oscillating pattern, that is, a mix of positive and negative TFPG. The minimum overall TFPG is observed in the coke, refined petroleum products and nuclear fuel industries, and the maximum in electrical and optical equipment for the period 1981–2020.

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Informal Manufacturing and Environmental Sustainability
Type: Book
ISBN: 978-1-83549-998-6

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Publication date: 2 December 2024

Debasish Nandy

Environmental pollution has been a great concern for the government of Bangladesh. Bangladesh was the least developed country, with a lot of financial challenges. The industrial…

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Environmental pollution has been a great concern for the government of Bangladesh. Bangladesh was the least developed country, with a lot of financial challenges. The industrial process in Bangladesh has not been able to maintain the directives of the SDGs. The lack of proper industrial policy, technological backwardness and lacunae in implementing environmental governance have affected the environment of the country. The unorganised and informal manufacturing units are often accused of emitting greenhouse gases. Like other South Asian countries, the informal manufacturing sector in Bangladesh has been established without proper planning and environmental guidelines. In Bangladesh, the informal sector includes brick kilns, food processing factories, leather tanning, etc., which are responsible for environmental pollution, health hazards and violations of SDG goals. The issue of environmental pollution by the informal manufacturing sectors of Bangladesh needs to be investigated in the context of the socioeconomic profile of the country and the performance of the government in monitoring the issue. Due to the lack of environmental governance, a high level of pollution has been occurring in the country. What kinds of economic tools and industrial policies are needed to be implemented to avoid environmental hazards? The content analysis method will be applied in this chapter.

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Informal Manufacturing and Environmental Sustainability
Type: Book
ISBN: 978-1-83549-998-6

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Publication date: 2 December 2024

Moses Metumara Duruji and Omolola Silva Asagba

The chapter's scope focuses on examining the manufacturing and consumption practices of plastic-related materials, which are nature-resistant and do not decompose quickly, and the…

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The chapter's scope focuses on examining the manufacturing and consumption practices of plastic-related materials, which are nature-resistant and do not decompose quickly, and the efforts of formal institutions to encourage the recycling of these materials for the environmental sustainability of the metropolis. The chapter examined how effective recycling policies have been in enabling the reuse of plastics and related materials and their effects on the environment. This chapter uses the green theory as a theoretical approach to explain the relationship between man and the environment. The chapter employed a qualitative approach to research with reliance on secondary sources of data. This chapter's findings revealed that while policies are geared towards improving the recycling culture in Lagos, Nigeria, those policies needed to be adequately enacted by the government with the appropriate structure to enable them to achieve the stated objectives, thus rendering them ineffective. In this chapter, recommendation centers, amongst others, that the government of Lagos state, Nigeria, should adopt extended producer responsibility (EPR) to hold manufacturers and importers accountable for the product's life cycle and invest in quality public–private partnerships (PPPs) in recycling to ensure environmental sustainability of the metropolis.

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Informal Manufacturing and Environmental Sustainability
Type: Book
ISBN: 978-1-83549-998-6

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Publication date: 2 December 2024

Suparna Banerjee and Aparna Banerjee

The paper provides a critical analysis of the relationship between the growth of informal manufacturing activities and environmental sustainability. The research is grounded in…

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The paper provides a critical analysis of the relationship between the growth of informal manufacturing activities and environmental sustainability. The research is grounded in the context of global economic trends, focusing specifically on the impact of these activities in India. The study highlights the significant role of unorganized manufacturing enterprises in the Indian economy. These enterprises, while contributing notably to the GDP, also lead to increased material and energy use, raising concerns about environmental sustainability. The paper underscores the trade-off between economic growth and environmental sustainability, particularly in the context of informal sector industrialization. The findings suggest that higher economic growth, driven by the informal manufacturing sector, correlates with greater environmental degradation. This relationship is primarily due to increased energy consumption and carbon intensity. The paper posits that the growth of the informal manufacturing sector, especially in developing countries like India, leads to higher CO2 emissions and environmental un-sustainability. This is exacerbated by the sector's significant reliance on energy sources like kerosene, contributing to higher carbon emissions. The analysis indicates a significant negative correlation between the growth of informal manufacturing activities and GDP, highlighting the environmental costs of such economic activities. The paper emphasizes the need for policy interventions to address the challenges posed by the informal manufacturing sector. It calls for policies that balance economic growth with environmental sustainability, considering the significant role of the informal sector in countries like India. The research presents a nuanced understanding of the complexities involved in achieving sustainable economic growth in the face of growing environmental concerns.

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Informal Manufacturing and Environmental Sustainability
Type: Book
ISBN: 978-1-83549-998-6

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