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Pre-Covid growth: Factory count rose to 2.46 L, with 1.3 cr workers in FY20

The number of factories in the country increased by 1.7 per cent year-on-year to 2.46 lakh in FY20, employing a total of 1.3 crore workers, as per the final results of the Annual Survey of Industries (ASI) released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday.

In comparison, the number of factories stood at 2.42 lakh in 2018-19 and 2.37 lakh seen in the post-demonetisation year of 2017-18.

These are the results for the normal year of 2019-20 before the beginning of the Covid pandemic, which affected employment growth.

Detailed break-up shows that employment in the corporate sector, including public and private government and non-government companies, rose 5.5 per cent to 97.02 lakh in FY20, while that in individual proprietorship declined 3.1 per cent to 11.36 lakh. Employment in the partnership sector fell by 11.7 per cent to 18.58 lakh in 2019-20, while that in the limited liability partnership grew 42 per cent to 1.22 lakh, the ASI results showed. The ASI data relates to factories employing 10 or more workers using power and those employing 20 or more workers without using power.

Employment in the 2018-19 fiscal had shown a 5.8 per cent growth in the corporate sector, and 2.88 per cent for the partnership sector. It showed a 1 per cent fall in individual proprietorship in FY19 after rising for two previous financial years.

In FY20, urban areas had 1.43 lakh factories employing 72.79 lakh workers, while rural areas had 1.03 lakh factories, employing 57.78 lakh workers, data showed. This compares with 1.42 lakh factories in the urban sector in FY19 employing 70.14 lakh workers and around 1 lakh factories in rural sector employing 57.83 lakh workers.

Among states, Tamil Nadu showed the highest number of employment of workers in factories at 22.09 lakh in 2019-20, followed by Gujarat with 15.89 lakh workers and Maharashtra with 14.54 lakh workers. This compares with 21.12 lakh workers in factories in Tamil Nadu in 2018-19, followed by 14.89 lakh workers in Gujarat and 14.73 lakh workers in Maharashtra.

Workers figures include all persons employed directly or through any agency whether for wages or not and engaged in any manufacturing process or in cleaning any part of the machinery or premises used for manufacturing process or in any other kind of work connected with the manufacturing process. Labour engaged in the repair & maintenance, or production of fixed assets for factory’s own use, or employed for generating electricity, or producing coal, gas etc. are also included in the count of workers.

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