Manufacturing employed 1.96 crore in FY24, with top five states' share at 55 percent

Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh and Karnataka emerged as the top five states employing most number of people in industries.

Tamil Nadu had the largest share in manufacturing jobs during FY24 along with the most number of factories, while Maharashtra ranked on top in terms of Gross Value Added (GVA), an Annual Survey of Industries (ASI) results for 2023-24 released by the statistics ministry on August 27 showed.

The manufacturing sector employed 1.96 crore people in FY24, a growth of 5.92 percent on year, however, this was slower than the manufacturing employment added in FY23. The industrial output rose by more than 5.80 percent during 2023-24 compared to the previous year. Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh and Karnataka emerged as the top five states employing most number of people in industries. These five states' share in manufacturing jobs stood at 55 percent in FY24.

In terms of total number of people engaged, food products and textiles emerged as the leading sectors with a share of 11.06 percent and 8.75 percent respectively.

The top 10 industries accounted for 71 percent of the manufacturing GVA in 2023-24, led by basic metals, motor vehicles, chemical and pharma products. Maharashtra had the largest share in the GVA, followed by Gujarat and Tamil Nadu, while in terms of share of employment, Tamil Nadu topped the list, followed by the two western states.

The survey revealed that the industrial sector's expansion remained strong both in value and productivity terms, for FY24, with a 5.9% annual growth in employment. However, only a handful of states - Tamil Nadu, Gujarat, Maharashtra, and UP - are driving industrial capacity and labour deployment.

A rising ratio of contract workers to total workers also reflected a shifting employment pattern in factories.