The Ministry of Statistics and Programme Implementation has released the results of the Annual Industry Survey (ASI) for the financial year 2022-23. This survey helps in understanding the structure, growth of industries and changes in their various economic parameters.
Key Highlights of the ASI Report 2022-23
Employment Growth in Manufacturing
- The ASI indicates that employment in manufacturing grew by 7.5% from 1.72 crore in 2021-22 to 1.84 crore in 2022-23, the highest rate of growth in the last 12 years.
- In 2022-23, the manufacturing sector created 13 lakh jobs, an increase from 11 lakh in FY22.
Gross Value Added (GVA) and Output Growth
- The manufacturing GVA grew robustly by 7.3%, reaching Rs 21.97 lakh crore in 2022-23, up from Rs 20.47 lakh crore in 2021-22.
- The total industrial input increased by 24.4%, while the output grew by 21.5% in the sector in 2022-23 compared to 2021-22, reflecting a significant rebound in manufacturing activities.
Main Drivers of Manufacturing Growth
- The primary drivers of manufacturing growth in 2022-23 were basic metals, coke and refined petroleum products, food products, chemicals, and motor vehicles.
- Together, these industries accounted for about 58% of total output.
Regional Performance
- Top 5 states in terms of employment were Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, and Karnataka.
Increase in Number of Factories
- The number of factories increased from 2.49 lakh in 2021-22 to 2.53 lakh in 2022-23, marking the first full recovery phase after Covid-19 disruptions.
Informal Sector Decline
- The informal sector saw a 1.5% decline in employment, dropping by 16.45 lakh to 10.96 crore in 2022-23, indicating a shift towards formal employment in manufacturing as per the Annual Survey of Unincorporated Enterprises (ASUSE) 2022-23 report released in July 2024.
Average Salaries
- Average emolument per person rose by 6.3%, reaching Rs 3.46 lakh in 2022-23 compared to 2021-22.
Capital Investment Surge
- Gross fixed capital formation (GFCF) surged by over 77% to Rs 5.85 lakh crore in 2022-23, while net fixed capital formation saw 781.6% rise to Rs 2.68 lakh crore, supporting sustained manufacturing growth.
- Gross fixed capital formation (GFCF), or “investment,” refers to the acquisition of produced assets, including second-hand purchases, as well as the production of assets by producers for their own use, minus disposals.
- Net fixed capital formation is the amount of Gross fixed capital formation (GFCF) minus the amount of consumption of fixed capital.
- Profits in the manufacturing sector increased by 2.7% to Rs 9.76 lakh crore.
Note
- Workers encompass all individuals employed directly or through an agency, including paid and unpaid workers involved in manufacturing processes or cleaning machinery and premises.
- Employees include all workers receiving wages, as well as those in clerical, supervisory, or managerial roles, and those involved in purchasing raw materials or fixed assets, along with watch and ward staff.
Gross Value Added (GVA)
- GVA represents the value that producers add to goods and services throughout the production process.
- It’s calculated by subtracting the cost of inputs (intermediate consumption) from total output.
- It’s a key component of Gross Domestic Product (GDP), reflecting economic growth. GVA growth rates provide insights into sectoral performance, aiding economic analysis and policymaking.
- GVA = GDP + subsidies on products – taxes on products.
- Net Value Added (NVA) is obtained by deducting depreciation from Gross Value Added (GVA).
- It represents the value of output after subtracting both intermediate consumption and the consumption of fixed capital.
Annual Survey of Industries (ASI)?
- The Annual Survey of Industries (ASI) is the primary source of industrial statistics in India.
- It began in 1960, using 1959 as the base year, and has been conducted annually since then, with the exception of 1972, in accordance with the Collection of Statistics Act of 1953.
- Since ASI 2010-11, the survey has been conducted under the Collection of Statistics Act, 2008, which was amended in 2017 to extend its coverage to All India.
Implementing Agency
- The National Statistical Office (NSO), a part of the Ministry of Statistics and Programme Implementation (MoSPI), conducts the ASI.
- The MoSPI is responsible for ensuring the coverage and quality of the released statistics.
Scope and Coverage of ASI
- The ASI extends to the entire country. It covers all factories registered under Sections 2(m)(i) and 2(m)(ii) of the Factories Act, 1948.
- Bidi and cigar manufacturing establishments, registered under the Beedi and Cigar Workers (Conditions of Employment) Act, 1966.
- Electricity undertakings engaged in the generation, transmission, and distribution of electricity, are not registered with the Central Electricity Authority (CEA).
- Units with 100 or more employees registered in the Business Register of Establishments (BRE) maintained by State Governments, as shared by the respective states.
Data Collection Mechanism
- Data for the ASI are collected from selected factories in accordance with the Collection of Statistics Act, 2008, as amended in 2017, and the rules established under it in 2011.