'Job creation powerhouse': FM Sitharaman credits PM Modi for manufacturing sector boost

Finance Minister Nirmala Sitharaman on Tuesday credited Prime Minister Narendra Modi for the recently reported remarkable surge in manufacturing jobs and wages for workers in FY 23, where they have risen by 7.6 per cent and 5.5 per cent, respectively, saying under his leadership, the sector has "not only rebounded but is now thriving".

As per the government's Annual Survey of Industries 2022-23, nationwide employment in the sector has achieved a laudable rise from 1.6 crore workers in 2018-19 to 1.9 crore in 2022-23, while the concentration of employment in factories has also been rise to rise, with the number of workers per factory going up from 65 in 2018-19 to 71 in 2022-23.

The data shows that wages per worker in the manufacturing sector have jumped by 5.5 per cent, with workers now earning an average of Rs 2.05 lakh per year in 2022-23 from Rs 1.69 lakh in 2018-19.

“More jobs mean more food on the table and more wages mean better quality of life for lakhs of Indian families. Under PM Modi’s leadership, the manufacturing sector has emerged as a job-creation powerhouse,” Minister Sitharaman said, crediting several key initiatives of the Modi government, including the Production-Linked Incentive (PLI) Scheme, Make in India, Aatmanirbhar Bharat, and Labour Law Reforms, for this remarkable turnaround, as per an official document.

Meanwhile, the key economic marker of Gross Value Added (GVA) in manufacturing, has risen by over 21 per cent from 2021-22 to 2022-23 and Sitharaman said that the surge "is a clear indication that India’s manufacturing sector is firing on all cylinders,” said Sitharaman".

The report also said that BJP-ruled states, like Gujarat, Uttar Pradesh, and Maharashtra, have become the powerhouses of India’s manufacturing revolution, driving massive growth in both output and employment.

Gujarat, known for its entrepreneurial spirit, tops the list with 17.7 per cent of the total output, while industrial heartland Maharashtra follows closely with a 14.6 per cent share of total output. Uttar Pradesh, India’s most populous state, contributed 7.1 per cent to the national manufacturing output.

In terms of employment, Maharashtra has performed exceptionally well, with 12.8 per cent of the total people employed in the manufacturing sector. Gujarat follows next with 12.6 per cent, while Uttar Pradesh contributed to 8.1 per cent.

In terms of the number of factories in operation, these three BJP-ruled states have secured top spots with Gujarat contributing 12.2 per cent at the 2nd rank, Maharashtra 10.4 per cent at the 3rd rank and Uttar Pradesh 7.5 per cent ranking 4th. NDA-ruled Andhra Pradesh ranks 5th with 6.5 per cent of factories.

Gujarat, Maharashtra, and Uttar Pradesh, in combination with Tamil Nadu and Karnataka, have emerged as the backbone of India’s manufacturing sector, together accounting for more than 50 per cent of India’s total manufacturing jobs, as per the survey.