NEW DELHI: The Production-linked Incentive (PLI) scheme is driving the growth in industrial output as the Annual Survey of Industries (ASI) showed that output grew by 21.5% in 2022-23, according to Niti Aayog. Gross Value Addition (GVA) by the industrial sector increased by 7.3% in current prices during the year, according to the ASI which was released on Monday.
According to the survey, the main drivers of this growth in 2022-23 were industries such as manufacture of basic metal, coke & refined petroleum products, food products, chemical and chemical products and motor vehicles.
These industries together contributed about 58% of the total output of the sector. While presenting the survey, BVR Subrahmanyam, CEO of NITI Aayog, told the media that the growth has been across all sectors, but PLI sectors have been doing especially well.
“Wherever the growth is strong, you have a PLI scheme in operation be it metals, automobiles, food products. All the sectors which have PLI are actually showing a far better growth rate,” said the Niti Aayog CEO.
The Niti CEO also said that the survey results show people are unnecessarily criticizing industrial growth. He said that survey shows that manufacturing is not just growing fast but also generating jobs at a greater pace.
According to the survey, the industrial sector has added 2.2 million jobs since 2018-19 and 4.9 million since 2012-13.
Over the previous survey for 2021-22, jobs in the industrial sector have grown from 17.2 million to 18.4 million. Annual wages per person has grown from Rs 3.26 lakh to Rs 3.46 lakh, an increase of 6.3%.
According to ASI 2022-23, the top five states employing the highest number of persons in the industrial sector were Tamil Nadu, Maharashtra,
Gujarat, Uttar Pradesh and Karnataka in ASI 2022-23. These states together contributed about 55% of total manufacturing employment in the year 2022-23.
In terms of GVA by Industrial sector, Maharashtra ranked first in 2022-23 followed by Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh. The top five states, taken together, contributed more than 54% of the total manufacturing GVA of the country in 2022-23.