NEW DELHI: The Annual Survey of Industries states that Indian factories delivered strong growth in 2023-24. Gross Value Added in registered manufacturing grew 11.89% to Rs 24.58 lakh crore, up from Rs 21.97 lakh crore. Net Value Added also rose 11.9% to Rs 21.03 lakh crore. Industrial output reached Rs 153.27 lakh crore, a 5.8% rise.
The number of persons engaged increased from 1.85 crore in 2022-23 to 1.96 crore in 2023-24, a 5.9% rise. Total emoluments rose from Rs 6.40 lakh crore to Rs 7.16 lakh crore, with average emolument per worker increasing from Rs 3.46 lakh to Rs 3.66 lakh.
However, beneath these gains lies a fault line. Almost 42% of workers were contract labourers, and jobs are clustered in a handful of industries.
The food products sector employed 11.06% of the workforce, or 21.6 lakh people. Textiles employed 17.1 lakh, basic metals 15.2 lakh, motor vehicles 13.7 lakh, and wearing apparel 13.4 lakh. The five sectors collectively account for over 41% of all factory jobs. The concentration is risky as the US has imposed a 50% tariff on India.
In the food processing industry with over 21 lakh workers, processed food exports were worth US$7.70 billion in 2023-24. The US is a major market for ready-to-eat foods, marine products, and beverages. Maharashtra, Gujarat, Andhra Pradesh, and Kerala, which host major clusters, now face the risk of losing their competitive edge.
The textile sector employed 17.1 lakh workers. Exports rose to $20.6 billion in 2024-25. Yarn, fabrics, and home textiles dominate the market, with the US being the top buyer. The new tariff could divert orders to Bangladesh and Vietnam. The wearing apparel industry employed 13.4 lakh and exported ready-made garments worth $15.99 billion in 2024-25, with nearly a third going to the US. Exporters in Tiruppur and the NCR face immediate pressure.
Basic metals, employing 15.2 lakh, exported nine million tonnes of steel in 2024, including flat steel and alloy products to the US. Integrated plants may continue, but smaller alloy units and mills could slow down, hitting jobs in Odisha, Jharkhand, and Chhattisgarh.