Factory outlook up, but jobs a concern

THE Annual Survey of Industries states that Indian factories delivered strong growth in 2023-24.

- VISMAY BASU @ New Delhi

Gross Value Added in registered manufacturing grew 11.89% to ₹24.58 lakh crore, up from ₹21.97 lakh crore. Net Value Added also rose 11.9% to ₹21.03 lakh crore. Industrial output reached ₹153.27 lakh crore, a 5.8% rise. The number of persons engaged increased from 1.85 crore in 2022-23 to 1.96 crore in 2023-24, a 5.9% rise. Total emoluments rose from ₹6.40 lakh crore to ₹7.16 lakh crore, with average emolument per worker increasing from ₹3.46 lakh to ₹3.66 lakh.

However, beneath these gains lies a fault line. Almost 42% of workers were contract labourers, and jobs are clustered in a handful of industries.

The food products sector employed 11.06% of the workforce, or 21.6 lakh people. Textiles employed 17.1 lakh, basic metals 15.2 lakh, motor vehicles 13.7 lakh, and wearing apparel 13.4 lakh. The five sectors collectively account for over 41% of all factory jobs. The concentration is risky as the US has imposed a 50% tariff on India.