Context: Recently, he Ministry of Statistics and Programme Implementation (MoSPI) unveiled the Annual Survey of Industries (ASI) 2022-23, highlighting substantial growth in India’s manufacturing sector.

• Key indicators showed a 7.3% rise in Gross Value Added, 21.5% in industrial output, and 7.4% in employment.

Key highlights

• Survey Reference Period: The ASI for the financial year 2022-23 covers the period from April 2022 to March 2023.

• Gross Value Added (GVA) Growth: The GVA in the manufacturing sector grew by 7.3% in current prices in 2022-23 compared to 2021-22.

• Industrial Output Growth: Industrial output increased by 21.5% in 2022-23 over the previous year.

• Main Growth Drivers: Key industries driving growth included Manufacture of Basic Metals, Coke & Refined Petroleum Products, Food Products, Chemicals, and Motor Vehicles, contributing 58% of the total output.

• Employment Growth: Estimated employment in the manufacturing sector in 2022-23 exceeded the pre-pandemic level (2018-19) by more than 22.14 lakh.

• Top GVA States: Maharashtra ranked first in GVA for 2022-23, followed by Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh, contributing over 54% of total manufacturing GVA.

• Top Employment States: Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, and Karnataka were the top states for employment in manufacturing, accounting for about 55% of total manufacturing employment in 2022-23.

About Annual Survey of Industries (ASI)

• ASI is the principal source of industrial statistics and data for organised manufacturing in India and is conducted by the National Sample Survey Office (NSSO) under the MoSPI.

• It has been conducted since 1959 under the Collection of Statistics Act 1953. Presently, the survey is being conducted under the Collection of Statistics Act 2008 as amended in 2017 and Rules framed there under in 2011.

• Objective: The Survey is designed to obtain comprehensive and detailed data -

• Estimating the contribution of the registered manufacturing sector as a whole to Gross Domestic Product (GDP) of the Country and also by type of industry,

• Systematic studying the structure of the industries by type of industry,

• Studying various factors influencing the industries for formulation of industrial policies.

The survey covers:

• Factories registered under the Factories Act 1948. It relates to factories employing 10 or more workers using power and those employing 20 or more workers without using power.

• For states of Maharashtra, Rajasthan and Goa, data is collected for factories employing 20 or more workers with power and factories having 40 or more workers without power.

• Bidi and cigar manufacturing establishments under the Bidi and Cigar Workers (Conditions of Employment) Act 1966, and

• All electricity undertakings engaged in generation, transmission and distribution of electricity, not registered with the Central Electricity Authority (CEA).

• Significance: The survey results give valuable input to the planners and policy makers in objectively evaluating the industrial scenario of the economy.

Manufacturing Sector in India

• Manufacturing is emerging as an integral pillar in the country’s economic growth, thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables.

• With 17% of the nation’s GDP and over 27.3 million workers, the manufacturing sector plays a significant role in the Indian economy.

• India is gradually progressing on the road to Industry 4.0 through the Government of India’s initiatives like -

• The National Manufacturing Policy which aims to increase the share of manufacturing in GDP to 25% by 2025 and

• The Production Linked Incentive (PLI) scheme for manufacturing which was launched in 2022 to develop the core manufacturing sector at par with global manufacturing standards.