Widening income inequality across the world in recent years has emerged as a core concern in development policy discourses. A persistent decline in labour share has been visible in many developed and developing economies since the 1980s, including India. Declining labour share in terms of wages and emoluments portends widening income inequality, demand constriction and slowdown of economic growth.

The study analyses the patterns, trends and determinants of declining labour share in organized manufacturing in India. It undertakes a comprehensive analysis of the trends and patterns in factor payments in the organized manufacturing sector, while long-term trends are explored across dimensions such as states, size classification and industrial classification.