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Factories in the country increased by 1.7 per cent year-on-year to 2.46 lakh in 2019-20, employing a total of 1.3 crore workers, as per the provisional results of the Annual Survey of Industries (ASI) released by the Ministry of Statistics and Programme Implementation. Gross fixed capital formation, an indicator of investment, grew 20.5 per cent to Rs 4.15 lakh crore in the organised manufacturing sector in 2019-20 as against a growth of 10.2 per cent at Rs 3.44 lakh crore in the previous fiscal, the data showed.
This compares with a growth of 1.98 per cent in the number of factories to 2.42 lakh in 2018-19 and a 1.2 per cent growth seen in the post-demonetisation year of 2017-18. These numbers assume significance as these are the results for the normal year of 2019-20 before the beginning of the Covid-19 pandemic, which affected employment growth.
Detailed breakup shows that employment in the corporate sector, which includes public and private government and non-government companies, increased 5.5 per cent to 97.03 lakh in 2019-20, while that in individual proprietorship declined 3.1 per cent to 11.36 lakh. Employment in the partnership sector fell by 11.7 per cent to 18.58 lakh in 2019-20 while that for limited liability partnership grew 42 per cent to 1.22 lakh, the ASI results showed.
The ASI data relates to factories employing 10 or more workers using power and those employing 20 or more workers without using power.
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PremiumEmployment in the previous fiscal of 2018-19 had shown a 5.8 per cent growth in the corporate sector, a 2.88 per cent growth for the partnership sector. It showed a 1 per cent decline in individual proprietorship in 2018-19 after rising for two previous financial years.
In 2019-20, urban areas had 1.43 lakh factories with fixed capital of Rs 13.64 lakh crore, employing 72.79 lakh workers, while the rural sector had 1.03 lakh factories with fixed capital of Rs 22.71 lakh employing 57.78 lakh workers, data showed.
How job growth was hit
These numbers assume significance as these are the results for the normal year of 2019-20 before the beginning of the Covid-19 pandemic, which affected employment growth.
This compares with 1.42 lakh factories in the urban sector in 2018-19 having fixed capital of Rs 12.92 lakh crore employing 70.14 lakh workers and around 1 lakh factories in the rural sector having fixed capital of Rs 21.74 lakh crore employing 57.83 lakh workers.
Fixed capital represents the depreciated value of fixed assets owned by the factory as on the closing day of the accounting year and it includes land including lease- hold land, buildings, plant & machinery, furniture and fixtures, transport equipment, water system and roadways and other fixed assets such as hospitals, schools, etc. used for factory workers.
Among states, Tamil Nadu showed the highest number of employment of workers in factories at 22.09 lakh in 2019-20, followed by Maharashtra with 14.54 lakh workers and Gujarat with 15.89 lakh workers. This compares with 21.12 lakh workers in factories in Tamil Nadu in 2018-19, followed by 14.89 lakh workers in Gujarat and 14,73 lakh workers in Maharashtra.
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Total wages paid to workers grew 6.3 per cent in 2019-20 as against a wage growth of 11.9 per cent in previous fiscal. Wages to factory workers in the corporate sector rose by 7.7 per cent in 2019-20.
Workers figures include all persons employed directly or through any agency whether for wages or not and engaged in any manufacturing process or in cleaning any part of the machinery or premises used for manufacturing process or in any other kind of work connected with the manufacturing process. Labour engaged in the repair & maintenance, or production of fixed assets for factory’s own use, or employed for generating electricity, or producing coal, gas etc. are also included in the count of workers.
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Read More: Year before Covid: Jobs in corporate sector, LLPs grew, proprietorships fell