According to the Annual Survey of Industries (ASI), the computer, electronics, and optical products sectors have recorded the highest employment growth between the pre-pandemic period (2019-20) and 2022-23. The total number of people employed in these sectors surged nearly 50%, growing from 283,000 to 425,000. This was followed closely by the furniture sector, which saw a 49.5% rise in employment.
Despite the rise in employment, the number of operating factories in these industries saw a slight decline from 2,419 in 2019-20 to 2,399 in 2022-23. Experts attribute the increase in jobs to the high level of contractual work prevalent in the electronics industry, where around 35-40% of workers were employed through contractors during 2021-22.
Meanwhile, other sectors such as ‘other manufacturing’ (jewelry, medical instruments, musical instruments) also experienced a 27% employment increase. On the other hand, industries like ‘other transport equipment’ (ships, railway locomotives, military vehicles) saw a 6.2% decline in employment, followed by leather products (-4.3%), beverages (-3.8%), and tobacco products (-2.5%).
Overall, employment in India’s manufacturing sector grew 7.4% in 2022-23, with the total workforce reaching 18.5 million, and the number of operating factories rising to 253,000. However, sectors like cotton ginning and motor vehicle trailers experienced declines in the number of operating factories.
