Efficiency of labour: According to Mehta, "By efficiency of labour is meant the ability of labour by virtue of which it is productive. In simple words, efficiency of labour refers to the quality and quantity of goods and services which can be produced over a given time under certain conditions.
Two causes of low efficiency of Indian Labour:
i. Wages not determined by efficiency: Workers in India are not paid according to their efficiency. The employers do not give to the efficient workers the higher incomes that they deserve.
ii. Inadequate training facilities: There is also a lack of training facilities for the workers in India. In the absence of training facilities, the workers are not able to develop their skills thus leading to low efficiency.
Suggestions to improve the quality of labour in India:
i. Productivity linked wage- Wages should be linked to productivity of the workers. Hence more efficient workers should be paid higher wages than compared to their less efficient counterparts.
ii. Favourable working conditions: Attention should be paid to the working conditions in the factories. More hygienic conditions and congenial conditions would help in achieving higher levels of efficiency.
iii. Adequate training facilities: Adequate provisions for imparting training to the workers should be made.