New Delhi: Productivity of Indian industries, as measured by the gross value added and the capital output ratio, improved in 2010-11 from a year before, with more factories set up during the year, show data released by the annual survey of industries (ASI) on Monday.
Gross value added—a key measure of productivity—grew 19.5% in 2010-11, faster than the 14.1% rise in the previous year. The basic metals, coke and refined petroleum products and chemical products sectors added the most value in 2010-11.
Capital output ratio, a measure of the capital required to produce one unit of net output, was nearly unchanged at 2.26 in 2010-11 compared with the 2.28 ratio for a year before, as per the provisional ASI data for 2010-11.
However, growth in fixed capital—an indicator of investment—at 19%, was not commensurate with the 33% increase in the number of factories that were set up in fiscal 2010-11, the study said.
Overall, about 211,600 new factories were set up in 2010-11. Fixed capital grew 28% in 2009-10.
As for employment growth in 2010-11, the total number rose 7.8%, while wages increased 24.8%, as measured in current prices. The food products and textiles industries generated the highest employment.