Annual Survey of Industries (ASI) for 2022-23

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Context: 

The Annual Survey of Industries (ASI) for 2022-23 was recently released by the Ministry of Statistics and Programme Implementation (MoSPI).

The Annual Survey of Industries (ASI)

It is India's main source of industrial statistics and data on the organized manufacturing sector.

The National Sample Survey Office (NSSO) under the Ministry of Statistics and Programme Implementation (MoSPI) conducts the survey. The ASI has been conducted since 1959.

Objectives:

• Estimating the contribution of the manufacturing sector to the country's Gross Domestic Product (GDP).
• Studying the structure of industries.
• Identifying factors that influence industries to help formulate industrial policies.

Coverage:

• Factories registered under the Factories Act of 1948.
• Factories that employ 10 or more workers using power. 
• Factories that employ 20 or more workers without using power.

The Annual Survey of Industries (ASI) for 2022-23 findings:

Employment In the Manufacturing Sector

• It showed that the total number of employees in manufacturing industries increased by 7.5 per cent to 1.84 crore in 2022-23 from 1.72 crore in 2021-22.
• This year marks the highest employment increase in manufacturing industries in the last 12 years.
• Estimated employment in manufacturing rose by over 22.14 lakh compared to pre-pandemic levels (2018-19). Average emoluments increased by 6.3% from the previous year.
• Leading sectors include food products, textiles, basic metals, wearing apparel, and motor vehicles.

Key Drivers of Manufacturing Growth: 

Growth attributed to basic metals, coke and refined petroleum, food products, chemicals, and motor vehicles. These sectors accounted for 58% of total manufacturing output, with a 24.5% output growth.

Leading States in Manufacturing GVA: 

Maharashtra leads in Gross Value Added (GVA), followed by Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh. These states together contributed over 54% of total manufacturing GVA.

Informal Sector Employment: 

Employment in the informal sector decreased by 16.45 lakh, which is approximately 1.5%, and total workforce in the informal sector was 10.96 crore in 2022-23 compared to 11.13 crore in 2015-16, as per the Annual Survey of Unincorporated Enterprises (ASUSE) 2022-23 released in July this year.

Factory Growth Post-Pandemic: 

Total factories rose from 2.49 lakh in 2021-22 to 2.53 lakh in 2022-23. This growth signals a full recovery from the Covid-19 pandemic.

Capital Investment Growth: 

Gross fixed capital formation surged by over 77% to Rs 5.85 lakh crore in 2022-23. Net fixed capital formation grew significantly, which reflects a recovery in capital investments post-pandemic.

Future Economic Outlook: 

Extrapolations suggest an increase in the manufacturing sector’s share of GDP with a projected GDP growth rate of 7.5%.

Important articles for reference:

Index of Eight Core Industries

Annual Survey of Unincorporated Enterprises (ASUSE) 2022-23

National Statistical Office (NSO)

Sources:

https://indianexpress.com/article/business/economy/survey-manufacturing-industries-job-growth-at-12-year-high-in-fy23-9596894/