Authors : Binny Cherian.

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 Volume 3 Issue 6

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Sustained economic growth is attained when there is increase in worker’s productivity. Most of the developing economies are consists of service industries, these service industries are dependent on manufactured goods for their growth and for their own technological progress. This paper examines the wage-labour productivity relationship in the Textile industries of Karnataka. This sector contributes 20% of the garment production which is worth of USD 1.56 billion. Karnataka contributes 8% of the entire country’s exports, 35% of country’s raw silk production, 24% of the silk goods exports at national level and 6% of the cotton produced in the country. At this juncture the state also reports strikes over unpaid wages which can distort the garment hub. When majority of workers are paid only minimum wages, will it affect the labour productivity? The researcher will use the data of 2005-06 to 2014-15 to describe the Wage-Labour Productivity Relationship. The data will be collected from the secondary sources such as registered (formal) segments of the Annual Survey of Industries. It is generally believed that wages are positively related to labor productivity. The objective of this paper is to study the interdependence between wages and productivity of the workers in the textile industry, two variables will be analysed, i.e, net value added (NVA) per worker and wages per worker. The Statistical tool like coefficient correlation will be used to find the correlation coefficient between the two variables under study.