Although labour productivity in South Asia continues to be amongst the lowest in the world, right above Sub-Saharan Africa, at $7,998 per worker, there is reason to cheer as it shows there is scope for improvement and hence for sustained

economic growth.

In India productivity has been rising by 3.7% per year, with services seeing the highest growth at 4.6% followed by manufacturing at 3.4% and agriculture at 1.5%, compared to China which saw an increase of 5.7% on an average. As per studies, productivity gains are strongly linked to poverty reduction, which the ILO attributes to ‘decent’ employment opportunities “that not only provide a sufficient income level but also ensure social security, good working conditions and a voice at work.” As of 2003, 87.5% workers in South Asia did not have such decent opportunities, while it was only 49.2% for East Asia, which might help explain the differences in the rate of productivity increases between India and China.