Global Economy

India’s factory employment crossed pre-pandemic level in FY22, investment also picked up pace

A 7% growth in employed people in factories ensured that India’s factory employment surpassed the pre-COVID level in FY22. Investments and output also gathered pace as the country recovered from the pandemic, according to the Annual Survey of Industries for FY21 and FY22 data released Monday.
“The ASI results for the year 2021-22 exhibit the resilience shown by the Indian manufacturing sector and tell the unique turn-around story of the Indian manufacturing sector after the adverse effect of the pandemic witnessed in 2020-21 in terms of output and input contraction and also a marginal fall in employment,” the release stated.
The total number of people employed rose to 17.2 million in FY22 from 16.1 million in the previous year, as the economy grew 9.2% during this period, whereas invested capital went up 6.8% in FY22 compared with 4.4% in the previous year.
India’s overall unemployment rate declined to 6.6% in June-September 2023 compared with 7.2% in FY23 and 9.8% in FY22, according to periodic labour force survey data released last year.

Gross value added rose 26.6% in FY22, buoyed by a 35% increase in output, showed government data, with the manufacture of basic metal, coke & refined petroleum products, pharmaceuticals, motor vehicles, food and chemicals and chemical products, accounting for 56% total GVA.

Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh accounted for over half the total manufacturing GVA.The Annual Survey of Industries recorded the performance of a sample of 80,764 enterprises based on pre-defined criteria.The total emoluments to employees also rose 15.9% in FY22—the fastest pace witnessed since 2018-19.

“Average emoluments also registered an increase with average salary earned per employee in this sector had gone up by 1.7% in 2020-21 and by 8.3% in 2021-22 in comparison to respective previous years,” the ministry said.

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