Five industries contribute to 46% of India’s GVA: MoSPI data

Auto manufacturing's share in GVA increased in 2022-23

Five industries contributed to nearly half of India’s manufacturing gross value added in 2022-23, data released by the Ministry of Statistics and Programme Implementation on October 30 showed.

The combined contribution of basic metals, chemical and chemical products, refined petroleum, motor vehicles and pharmaceuticals was 46 percent in 2022-23, summary results of the Annual Survey of Industries released by the stats ministry revealed.

Of this, basic metals and chemical and chemical products sectors were 22 percent, while the rest of the contribution came from the other three industries.

While the share of pharma has declined from the previous year, the automobile industry witnessed an improvement in its contribution to India’s manufacturing output from 6.6 percent in 2021-22 to 8 percent in 2022-23.

Five states accounted for 55 percent of the country’s total gross value added and employment.

In terms of GVA, Maharashtra had a 16 percent share, followed by Gujarat at 15 percent, and Tamil Nadu at 10 percent.

The employment share was higher for Tamil Nadu at 15 percent, followed by Maharashtra at 12.8 percent.

Uttar Pradesh had a lower share in the GVA, but a higher share in employment at 8 percent, as per 2022 data.

Karnataka and Maharashtra witnessed a rise in share of employment in 2022-23 compared with the previous year.

On the other hand, UP witnessed an increase in the share of GVA contribution compared to the previous year.

Manufacturing GVA had grown 7.3 percent in 2023-24 compared with the previous year.

Moneycontrol had earlier reported that employment in the formal manufacturing sector rose at the fastest pace in 11 years in 2022-23, as capital spending by firms rebounded beyond pre-Covid levels.

Profits of formal sector firms were higher at Rs 9.76 lakh crore, while emoluments also remained in double digits at 14.2 percent despite a decline from the 15.9 percent growth witnessed in FY22.