In this paper, we took into consideration the expenditure of the Government of India on the indispensable components of Industry 4.0 namely, telematics, promotion of electronics and HW manufacturing, and cyber security (ICERT, IT Act). The paper attempted to analyze the potential impact of these components of Industry 4.0 on the labour productivity of the India from 2013 – 2018 based on the government funding schemes. Newly – West Estimator was used taking into consideration the problems like multicollinearity and heteroscedasticity. The negative value of the coefficients indicated that the labour productivity is inversely related with the components of Industry 4.0. It was also found out that the government has reduced expenditure in two of the important components of industry 4.0 (telematics and cyber security), while increasing the expenditure in the promotion of electronics and HW manufacturing. The increase in labour productivity in the past 6 years might be due to some other factors in the economy.

1. Baldassarre, F., Ricciardi, F., & Campo, R. (2017, October). The advent of Industry 4.0 in manufacturing industry: Literature review and growth opportunities. In, DIEM: Dubrovnik International Economic Meeting (Vol. 3, No. 1, pp. 632–643). Sveučilište u Dubrovniku.
2. Bonekamp, L., & Sure, M. (2015). Consequences of Industry 4.0 on human labour and work organization. Journal of Business and Media Psychology, 6(1), 33–40.
3. Breunig, M., Kelly, R., Mathis, R., & Wee, D. (2016). Getting the most out of Industry 4.0. McKinsey & Company. Retrieved from <a href=https://www.mckinsey.com/business-functions/operations/our-insights/industry-40-looking-beyond-the-initial-hype target="_blank">https://www.mckinsey.com/business-functions/operations/our-insights/industry-40-looking-beyond-the-initial-hype</a>
4. Desilver, D. (2017, July 25). Most Americans unaware that as U.S. manufacturing jobs have disappeared, output has grown (FactTank). Retrieved from Pew Research Centre Achievement website: <a href=https://www.pewresearch.org/fact-tank/2017/07/25/most-americans-unaware-that-as-u-s-manufacturing-jobs-have-disappeared-output-has-grown/ target="_blank">https://www.pewresearch.org/fact-tank/2017/07/25/most-americans-unaware-that-as-u-s-manufacturing-jobs-have-disappeared-output-has-grown/</a>
5. Flynn, J., Dance, S., & Schaefer, D (2017). Industry 4.0 and its potential impact on employment demographics in the UK. In, J. Gao (eds.), Advances in Manufacturing Technology XXXI - 15th International Conference on Manufacturing Research (ICMR). DOI: <a href=https://dx.doi.org/10.3233/978-1-61499-792-4-239 target="_blank">https://dx.doi.org/10.3233/978-1-61499-792-4-239</a>
6. Khan, M. (2018). Determinants of muslim female participation in the labour force. Arthshastra Indian Journal of Economics & Research, 7(5), 35–46. <a href=https://dx.doi.org/10.17010/aijer/2018/v7i5/139926 target="_blank">https://dx.doi.org/10.17010/aijer/2018/v7i5/139926</a>
7. Longo, F., Nicoletti, L., & Padovano, A. (2017). Smart operators in Industry 4.0 : A human-centered approach to enhance operators' capabilities and competencies within the new smart factory context. Computers & Industrial Engineering, 113, 144–159. <a href=https://dx.doi.org/10.1016/j.cie.2017.09.016 target="_blank">https://dx.doi.org/10.1016/j.cie.2017.09.016</a>
8. Nafchi, M. Z., & Mohelská, H. (2018). Effects of Industry 4.0 on the labor markets of Iran and Japan. Economies, 6(3), 39. <a href=https://dx.doi.org/10.3390/economies6030039 target="_blank">https://dx.doi.org/10.3390/economies6030039</a>
9. Patanjali, S., & Subramaniam, D. (2019). India, The Fourth Industrial Revolution and government policy. Arthshastra Indian Journal of Economics & Research, 8(2), 32–44. <a href=https://dx.doi.org/10.17010/aijer/2019/v8i2/145224 target="_blank">https://dx.doi.org/10.17010/aijer/2019/v8i2/145224</a>
10. Pelliccione, A. (2015, September 15). 2015 workforce development study. Retrieved from Plant Engineering Achievement website: <a href=https://www.plantengineering.com/articles/2015-workforce- development-study/ target="_blank">https://www.plantengineering.com/articles/2015-workforce- development-study/</a>
11. Sumer, B (2018). Impact of Industry 4.0 on occupations and employment in Turkey. European Scientific Journal, 14(10), 1. <a href=https://dx.doi.org/10.19044/esj.2018.v14n10p1 target="_blank">https://dx.doi.org/10.19044/esj.2018.v14n10p1</a>