India’s development has not been uniform and has leapfrogged from agriculture to services, skipping over a manufacturing phase. However, the agriculture and services sectors typically do not create enough productive jobs for those at the bottom of the education and skills ladder. Thus, there is a need for labor-intensive manufacturing to absorb those with low levels of education and skills, but only around 11–12 percent of the total employment is in manufacturing, and this share has been essentially flat for two decades. There is also too much labor employed in the low-productivity unorganized sector, and there are too few jobs in the high-productivity formal sector. As recently as 2015–16, the unorganized sector continued to employ over 70 percent of total manufacturing employment. Inclusive growth would require us to find ways to enable formal manufacturing to prosper.In this episode of Interpreting India, Radhicka Kapoor joins Sayoudh Roy to discuss the state of labor-intensive manufacturing in India.--Episode ContributorsRadhicka Kapoor is a visiting professor at the Indian Council for Research on International Economic Relations, in addition to having previously worked at the Planning Commission and at the International Labour Organization, Geneva. Her research interests include poverty and inequality, labor economics and industrial performance, and she has published extensively on labor-intensive manufacturing in India. Most recently, she has edited A New Reform Paradigm, a collection of essays written in honor of Isher Judge Ahluwalia.Sayoudh Roy is a senior research analyst with the Political Economy Program at Carnegie India.  His work focuses on the macroeconomic implications of frictions in labor and financial markets and how interactions between them can affect macroeconomic aggregates.--Additional ReadingA New Reform Paradigm: Festschrift in Honour of Isher Judge Ahluwalia, edited by Radhicka KapoorCreating jobs in India’s organised manufacturing sector by Radhicka KapoorExplaining the contractualisation of India’s workforce by Radhicka Kapoor and P. P. KrishnapriyaStylized Facts on the Evolution of the Enterprise Size: Distribution in India's Manufacturing Sector by Radhicka KapoorEmployment in India by Ajit Kumar GhoseIndia Employment Report by Ajit Kumar GhoseStructural Change and Employment in India by Nomaan MajidSmall-Scale Industry Policy in India: A Critical Evaluation by Rakesh MohanIndustrialisation for Employment and Growth in India: Lessons from Small Firm Clusters and Beyond, edited by Rayaprolu Nagaraj--?️ Check out our podcast, Interpreting India available now on YouTube, Spotify, and iTunes!Home: https://interpreting-india.simplecast.com/Spotify: https://open.spotify.com/show/51yeOb8SimMIPe2KgIUQ8gApple Podcasts: https://podcasts.apple.com/in/podcast/interpreting-india/id1476357131YouTube: https://www.youtube.com/playlist?list=PLeXQMWQXRkJXF71nDiX9LhlXiSkhR8JJT--Carnegie India Socials:Instagram: https://www.instagram.com/carnegieindia/ (@CarnegieIndia)Twitter: https://twitter.com/CarnegieIndiaWebsite: https://carnegieindia.orgYouTube: https://www.youtube.com/c/CarnegieIndia/