Indians do work long hours

Work-life. There is no consensus on the optimum weekly work hours. But working hours must be linked to productivity and output

Arriving at an optimum and acceptable work hours has been a continuing debate in labour and employment discourse and we are far from a consensus.

The debate was triggered again when recently Infosys co-founder NR Narayana Murthy advised young Indians to work 70 hours a week to level up the country’s productivity, even as there is little evidence of a significant positive correlation between the two.

Not surprisingly Narayana Murthy’s advice attracted a lot of attention, given how he linked long working hours with nation building. Instantly and invariably it sparked a debate with divergent voices of both applause and criticism.

It is also interesting that it has come at a time when in a post-Covid era people have, more than ever, been mulling over how to maintain work-life balance and the F.I.R.E (financial independence, retire early) movement gaining momentum. At the other end of the spectrum, workers in certain sectors are engaging in ‘moonlighting’, an indication that they are not averse to putting in more hours at work for supplementing their income. But legislation in India provides that no adult worker shall be required or allowed to work for more than forty-eight hours in any week (Section 51 of the Indian Factories Act, 1948).

However, some States empowered with Section 65(2) of the Factories Act, 1948 have increased the working hours up to 12 hours a day. Another legislation, the Occupational Safety, Health and Working Conditions Code (OSHWC), 2020 provides that no worker shall be required or allowed to work, in any establishment or class of establishment for more than eight hours in a day. There is a proposal to amend the OSHWC Code to provide for a 12 working hours inclusive of intervals for rest.

As it stands, these existing provisions in India is somewhat in consonance with Article 2 of the ILO’s “Hours of Work (Industry) Convention, 1919 (No.1)” which mandates that working hours of persons employed shall not exceed eight in the day and 48 in the week.

What does empirical data say about the time spent by workers at work? The National Sample Survey Office’s 2019 Time Use Survey (TUS) revealed that there is wide variation in the amount of time that people spent at work across occupation and gender. For instance, male workers put in on average 354.4 minutes of work a day on agriculture and allied activities, while it is on average 295.5 minutes a day by female workers. The nature of such activities is such that long hours at work are not required all through the year. Also, commuting time would be small or negligible.

Sectoral break-up

Relatively, on the other hand, male workers put in 30 per cent more time at 461.6 minutes of work a day on average and female workers spent 10 per cent more at 326.3 minutes of work a day on average in services related activities as compared to those engaged in agriculture and allied activities. This is without taking into account commute time and work breaks.

Further, it is seen that in corporations, government, non-profit institutions and other household enterprises (producing and processing goods, construction activities, other ancillary activities) male workers and female workers spent on average about 441.2 minutes a day and 345.8 minutes a day at work, respectively. Thus, male workers spent 25 per cent more and female workers about 17 per cent more time in these activities as compared to those engaged in agriculture and allied activities. It would be much higher if the commuting time and breaks are taken into consideration.

The analysis shows that male workers on average spent about 83.3 minutes and female workers about 72 minutes in commuting time, perhaps indicating that females would prefer a much nearer work place. It is safe to assume that it would be much longer commuting time in congested cities and metros.

Data also shows that on average male and female workers utilise about 50-56 minutes as breaks during their working time. Cumulatively, it is seen that excluding those engaged in agriculture and allied activities, male workers spent on average more than 10 hours a day at work including commuting time and work breaks, while it is relatively lower for female workers at an average of 7-8 hours a day. This works out to 48-50 hours in a five-days working week for male workers, while it is 37-39 hours.

Long hours

Considering both male and female workers, persons employed in activities, other than agriculture and allied activities, are spending around 47-48 hours at work (including breaks and commuting time) in a five-day working week. It would be much higher for those with a six-day working week. This is in line with the findings of the ILO data (2021) where it found that Indians are among the hardest workers in the world, averaging 47.7 hours per week per employed person. It is also comparable to the amount of time put in by the workers in China.

Data as per the TUS further revealed that on average, workers (aged 18 to 60 years) engaged in activities other than agriculture & allied activities spent more than 9-10 hours a day at work (including breaks and commuting time). Interestingly, even those who are 60 years and above are not far behind as they spent on average 8-9 hours (including breaks and commuting time) at work.

It is complicated to determine or fix a general optimum level of working hours. But it is without doubt that working hours should be linked to productivity and output, and a fair and adequate compensation to the workers should mandatorily be a natural outcome. Working hours, productivity and compensation are required to be in alignment. These factors can never work in isolation.

John Maynard Keynes in 1930 had speculated in his essay “Economic Possibilities for our Grandchildren” that tremendous productivity growth would enable us to eventually work only 15 hours a week! Alas, that is still a distant dream.

Baruah is Associate Fellow at NCAER, New Delhi and Wankhar is a retired Government officer. Views are personal.

Taking Forward IMF’s Gender Mainstreaming Strategy at the Country Level

The International Monetary Fund’s 2022 Strategy to Mainstream Gender calls for an intentional and systematic approach to integrating gender into macroeconomic policies to foster strong, sustainable, and inclusive growth. This Note argues that the IMF is filling a critical gap in its mandate by mainstreaming gender into its work. It makes the case that (i) closing gender gaps is macrocritical because they go hand-in-hand with higher economic growth, greater financial stability, and lower income inequality. Not doing so would lead to underdevelopment, underutilization, and misallocation of productive human resources; and (ii) applying a gender lens to macroeconomic, financial, and structural policy design can help to narrow gender gaps and result in improved economic outcomes. This Note provides an overview of gender gaps in opportunities, outcomes, and representation; takes stock of how these gaps impact macroeconomic and financial outcomes; and identifies polices to narrow these gaps. It explains how narrowing gender gaps can benefit societies and outlines steps countries can take to unleash the economic gains from gender equality.

The NCAER-NSE Business Expectations Survey for India Second Quarter 2023–24

The National Council of Applied Economic Research (NCAER), one of India’s premier economic policy research think tanks, carried out the 126th Round of its Business Expectations Survey (BES) in September 2023, with support from the National Stock Exchange of India Limited (NSE). NCAER has been carrying out the BES every quarter since 1992, covering 500 firms across four regions.

There has been all-round improvement in business sentiments in this quarter.  The BCI rose from 128 in 2023–24:Q1 to 140.7 in 2023–24:Q2 .   The BCI was also higher than the corresponding quarter in the previous year (132.5 in 2022–23:Q2).

Press Release: NCAER-NSE Business Expectations Survey for 2023–24:Q2

Business sentiments rose in 2023–24:
Q2 as compared to last quarter

The National Council of Applied Economic Research (NCAER), one of India’s premier economic policy research think tanks, carried out the 126th Round of its Business Expectations Survey (BES) in September 2023, with support from the National Stock Exchange of India Limited (NSE). NCAER has been carrying out the BES every quarter since 1992, covering 500 firms across four regions.

There has been all-round improvement in business sentiments in this quarter.  The BCI rose from 128 in 2023–24:Q1 to 140.7 in 2023–24:Q2.   The BCI was also higher than the corresponding quarter in the previous year (132.5 in 2022–23:Q2).

The NCAER-NSE Business Confidence Index (BCI) is driven by four components, with each of them being assigned equal weights in the Index. The four components are ‘overall economic conditions will improve in the next six months’, ‘financial position of firms will improve in the next six months’, ‘present investment climate is positive’, and ‘present capacity utilisation is close to or above the optimal level’.  The share of positive responses was higher for all four components of the BCI in 2023–24:Q2 compared to 2023–24:Q1.

Business sentiments were relatively more buoyant about domestic markets than external markets.  The share of firms expecting production, domestic sales and pre-tax profits to increase was more in 2023–24:Q2 compared to 2023–24:Q1. In contrast, a lower percentage of firms expected exports of own products and imports of raw materials to increase in 2023–24:Q2 compared to 2023–24:Q1.

Regarding expectations about future price trends, sentiments were muted for both prices of inputs and outputs with a lower percentage of firms expecting prices to rise in 2023–24:Q2 over 2023–24:Q1. The share of firms expecting a rise in the unit cost of raw materials, electricity and labour in the next six months decreased between the two periods. Similarly, the percentage of firms expecting their ex-factory prices to rise came down in 2023–24:Q2 over 2023–24:Q1.

The latest BES Report can be accessed and downloaded from here.

Methodology: NCAER has been conducting the BES every quarter since 1991. The BES findings reported here relate to 500 firms. The survey elicits responses from firms across six cities to assess business sentiments in the four regions of India: Delhi-NCR, representing the North; Mumbai and Pune, the West; Kolkata, the East; and Bengaluru and Chennai, the South. All the industries are represented in terms of ownership type (including public sector, private limited, and public limited firms, partnerships/individually owned firms, and multinational corporations); the industry sector (including consumer durables, consumer non-durables, intermediate goods, capital goods, and services); and firm size based on the annual turnovers of the firms (in the range of less than or equal to ₹1 crore, more than ₹1 crore to less than or equal to 10 crore, more than ₹10 crore to less than or equal to ₹100 crore, more than ₹100 crore to less than or equal to 500 crore, and more than ₹500 crore). The sample is drawn randomly from a list of firms in each city. A sizeable number of units taken in one round are retained in the next round to maintain continuity of the analysis.

The BCI is computed on the basis of responses from firms to four questions. Two of these questions focus on macro factors and the other two on micro factors. All the questions carry equal weight. The BCI is a simple average of all the positive responses in the case of three questions, whereas in the case of the fourth question on capacity utilisation, an average of the sum of the responses indicating ‘improvement’ and ‘status quo’ is taken. Thereafter, the BCI is compared with the base value (denoted by the value of 100 in Round 7; 1993) to determine any change. An increase in the level of the BCI (signified by a larger share of positive responses) reflects optimism in the business sector about the performance of the economy.

Fish consumption in India in 2022-23 and future prospects

Fish contributes to ensuring domestic food and nutritional security and India registered a per capita yearly consumption of over 13 kg in 2022-23. In addition, more varieties of fish are available for consumption by households through expanding market networks. However, Indian consumption is still below the international standard. Augmenting the level of consumption is a major challenge that needs critical policy support.

The current per capita consumption, though lower as compared to the international estimate (OECD &FAO) of 20.5 kg per capita (2019-20) has a high potential to catch up to the predicted level of 21.4 kg per capita by 2031.

The National Council of Applied Economic Research (NCAER) has conducted a comprehensive study on the fishery sector for the Department of Fishery, Government of India in 2022-23. The study mainly focussed on the demand side aspects of the Indian market. A few interesting points that emerged from the study are:

Monthly consumption of fish per household has shown a quantum leap in ten years from 2.66 kg in 2011- 12 (NSS 68th Round) to 4.99 kg in 2022-23 (NCAER).

The NCAER household survey covered 24 states in 105 districts, covering around 13 thousand households through detailed primary enumeration. Per capita consumption of fish from the NCAER survey result provides an important insight into the penetration and deepness of the consumption of fish as food in India. It is observed that consumption of the fish-eating population has grown significantly to over 13 kg per capita per annum in 2022-23 from 7kg in 2011-12 (NSS).

The current per capita consumption, though lower as compared to the international estimate (OECD &FAO) of 20.5 kg per capita (2019-20) has a high potential to catch up to the predicted level of 21.4 kg per capita by 2031. Since India has high growth potential in the coming decade, there is a possibility that per capita fish consumption will catch up to the international standard.

In the last five years, around 28% of households reported an increase in the consumption of fish. Around 56% of the households reported that the availability of more variety of fish helps grow consumption. A lower price range (19%) comes next. In this respect, market linkage plays the most crucial role.

Monthly household consumption expenditure on fish in proportion to total food expenditure has gone up to around 16.8% in 2022-23 as compared to 7.6% in 2011-12

Challenges of Enhancing Consumption:

  • About 73% of the responding district officials agreed that ‘low consumption of fish among the people in the Low-Income Group (LIG) is due to their low purchasing
  • For the Medium-Income-Group (MIG), low consumption of fish is due to a ‘lack of awareness about the health benefits of fish’ was agreed upon by 44%.
  • In the High-Income Group (HIG), most people avoid going to the fish market to buy due to the poor hygienic condition in the market and /or lack of freshness of fish, which was agreed upon by 54%.
  • Lack of post-harvest processing for domestic market’ and ‘poor availability of ready-to-cook and ready- to-eat fishery products’ have a negative effect on overall fish consumption, was agreed by 6% of the respondents.

Marketing is the point at which the farmer’s products such as fish leave him with a return called income. Marketing of fish involves all the activities in the flow of fish or fish products from the farmer to the consumers.

Solutions related to Marketing Linkage

The respondents frequently consider the marketing of fish products as one of their major challenges in fish farming. This is because while the farmers are able to identify poor prices, lack of transport, lack of ready market, and high post-harvest losses as the challenges, they are often poorly equipped to identify potential solutions. Successful marketing requires learning new skills, new techniques and new ways of obtaining and using information appropriately.

Marketing is the point at which the farmer’s products such as fish leave him with a return called income. Marketing of fish involves all the activities in the flow of fish or fish products from the farmer to the consumers. It includes various operations required to move the fish or fish products from the producer to the consumer.

The major recommendations that emerged are as follows.

  • Establish door-to-door fish vending, mobile vending centres and hatcheries and processing plants in rural areas
  • Establish retail fish Kiosk and live fish vending centres
  • Construction of hygienic and well-equipped fish marketing infrastructure in all municipal areas
  • Training and wide publicity through electronic and mass media to create mass awareness regarding the health benefits of fish and fish
  • Preparation and marketing of value-added fish by-
  • At least one Hygienic fish market in every ward of the municipal
  • Awareness of sponsored schemes for increasing fish production through SHGs.
  • Creating well well-developed live fish wholesale market at the Block
  • Demonstration of newly introduced fish species culture like Pabda, Bhetki
  • Fish stalls/ Kiosks at every prime location i.e. busy railway stations/ bus stands etc. with processed/ packaged fish items including live fish run by SHG/ FPG& FCS with technical support.
  • Infrastructure creation for selling live fish, reservoir sites like landing sites, handling sites
  • Infrastructure for marketing processed
  • Mobile fish kiosks in each Panchayat and word level be
  • Establishment of a modern and hygienic fish
  • More and more supply of fresh/live fish at a low price to increase consumption.
  • Providing hygienic kits to fish sellers, retailers and
  • Regular non-stop publicity in various media regarding the health benefits of fish consumption.
  • To provide well-equipped shops on a rental basis for poor sellers at prime
  • Provision of vehicles for fish selling/transportation.

The modernmechanism needs to be focussed on adopting the Fish Market and Price Information System (FMPIS), a web-based platform that provides real-time or near real-time information on fish prices, availability, and other market data to stakeholders in the seafood industry. This can include fishermen, fish farmers, seafood processors, wholesalers, retailers, and consumers.

FMPIS can help improve the efficiency and transparency of seafood markets by providing timely and accurate market information to all participants. This can reduce the information asymmetry that often exists between different market actors, and can also help to reduce price volatility. The results of a survey on the prevalence of the Fish Market and Price Information System (FMPIS) in a fishery market can have important implications for the future prospects of that sector. Some potential implications of these results for the future prospects of the fishery sector could include:

Limited transparency and efficiency: If a significant proportion of fishermen do not have access to FMPIS, this could limit the transparency and efficiency of the fishery sector. This could result in higher costs reduced competitiveness for producers, and potentially higher prices for consumers.

Reduced profitability: Without access to real-time or near real-time market data, fishermen may have difficulty making informed decisions about the sale and purchase of fish. This could result in reduced profits or increased financial risk.

Increased risk of exploitation: Without access to market information, fishermen may be more vulnerable to exploitation by buyers or intermediaries who may offer them lower prices than they could otherwise get in a more transparent market. This could result in reduced profits and increased financial risk for fishermen.

Limited data for policy-making: Without access to comprehensive market data, it may be difficult for policy- makers to make informed decisions about the management and regulation of seafood markets. This could result in policies that are less effective at promoting sustainable, efficient, and transparent markets.

Integrating the Use of Technology to Enhance Demand

The integration of technology throughout the marketing value chain could play a key role in easing the availability of the varieties of fish in the consumption space.Modern processing and cold storage facilities have improved the preservation of fish quality during transportation.

E-commerce platforms and online marketplaces could connect fish farmers directly to buyers, thus expanding market opportunities. In this respect, the fishery sector could harness vast potential of AI applications to reduce wastageby identifying area of demand and increase efficiency by providing competitive options to consumers looking for itemized sources of protein.

However, challenges in providing inexpensive and dependable technology to small and mid-sized fish farmers are daunting and require substantive intervention in the form of investment, training and awareness for an enabling atmosphere with the cooperation of the Government, research entities and private organizations.

The authors are Senior Fellow, Fellow, and Associate Fellow at NCAER. Views expressed are personal.

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