Metal, food, auto firms drove industrial growth in FY23, helped add 1.2 mn jobs

New Delhi: Basic metal producers, refineries and chemical, and food and automobile companies powered a 21.5% annual output growth in industry in 2022-23, helping add 1.2 million jobs in the economy, the ministry of statistics and programme implementation said in its latest Annual Survey of Industries (ASI) for the year.

The ministry said that producers of basic metals, coke and refined petroleum products, food products, chemicals and motor vehicles accounted for 58% of industrial output in FY23. These sectors alone grew 24.5% in the year under review.

The Annual Survey of Industries gives an idea of the makeup of the industry and the sectors which are growing, attracting investments and adding more jobs.

Impact of covid

The survey showed that fixed capital deployed in plant, machinery and factories had shown a lukewarm growth in FY21 and FY22 as the first and second waves of covid pandemic took its toll on the economy. Fixed capital had seen a 5% growth in FY20 but slowed to 1.5% and a less than 1% expansion in the subsequent two years before staging a 10.6% rebound in FY23 to ₹41.2 trillion.

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Total persons engaged in the industry had fallen from 16.6 million in FY20 to 16 million in FY21 but subsequently improved to 17.2 million in FY22 and to 18.4 million in FY23. In FY23, 1.2 million more persons were engaged by the industry, showing industrial job creation. Total persons engaged include employees, working proprietors and their family members who are actively engaged in the work of the factory even without any pay.

The country’s industrial sector is growing at a fast pace and India can now aim to achieve 9%-plus economic growth, according to NITI Aayog chief executive B.V.R. Subrahmanyam. Addressing a press conference after the release of the survey, Subrahmanyam said India’s manufacturing sector has been generating sufficient number of jobs, news agency PTI reported.

“The Reserve Bank of India has revised upwards the GDP growth projection for the current fiscal to 7.2% from 7% on rising private consumption and revival of demand in rural areas,” Subrahmanyam said, adding that the effect of covid has been wiped out.

Employment

The survey pointed out that the estimated number of persons employed in industrial sectors in FY23 exceeded the pre-pandemic level (that is, 2018-19) by more than 2.2 million. Average emoluments too have improved. As per the survey, emoluments in the sector improved by a little over 14% annually in FY23 to ₹6.4 trillion. The figures are not adjusted for inflation.

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The survey showed that both fixed capital deployed per factory and the gross output increased in FY23 from the year-ago period. In terms of having more factories and persons engaged, food producers lead the pack, while basic metal producers lead in capital employed, output and gross value addition.

Tamil Nadu has the highest number of factories, followed by Gujarat and Maharashtra. In terms of persons engaged, Tamil Nadu remains the leader, followed by Maharashtra and Gujarat. In terms of gross value added in the industry, Maharashtra and Gujarat are the toppers, followed by Tamil Nadu.

India’s real GDP grew 6.7% in the June quarter, below the RBI’s 7.1% forecast and down from the 7.8% growth in the previous quarter.