Annual Survey of Industries (ASI) 2022-23

Annual Survey of Industries (ASI) 2022-23

(இதன் தமிழ் வடிவத்திற்கு இங்கே சொடுக்கவும்)

Introduction

• The Ministry of Statistics and Programme Implementation (MoSPI) has recently released the results of the Annual Survey of Industries (ASI) for the financial year 2022-23.
• This survey covers the period from April 2022 to March 2023.
• The ASI, referred to as ASI 2022-23, involved extensive fieldwork conducted between November 2023 and June 2024.
• The ASI is a vital tool for capturing and analysing the dynamics of the manufacturing sector in India.
• Objective: Its primary objective is to provide meaningful insights into the changes in composition, growth, and structure of various industries.
• By examining key parameters such as output, value added, employment, and capital formation, the ASI serves as an essential resource for policymakers, economists, and researchers.
• The findings from ASI 2022-23 contribute significantly to the National Accounts Statistics at both national and state levels.
• This data is crucial for understanding economic performance and trends within the manufacturing sector.
• It enables informed decision-making and strategic planning.

Manufacturing Industries Job Growth at 12-Year High

• Historic Employment Increase: The total number of employees in manufacturing industries rose by 7.5%, reaching 1.84 crore in 2022-23.
• This is an increase from 1.72 crore in 2021-22.
• This marks the highest rate of employment growth in the manufacturing sector in the last 12 years.

Leading Sectors:

• The highest employment was recorded in factories producing:
• Food Products
• Textiles
• Basic Metals
• Wearing Apparel
• Motor Vehicles, Trailers, and Semi-Trailers

Factory Growth and Recovery

• Increase in Factories: The total number of factories rose from 2.49 lakh in 2021-22 to 2.53 lakh in 2022-23, marking the first full recovery phase following the Covid-19 pandemic.

Informal Sector Employment Decline

• Informal Employment Trends:
• In contrast, the number of workers employed in the informal sector has seen a decline.
• According to the Annual Survey of Unincorporated Enterprises (ASUSE) for 2022-23, the informal sector lost approximately 16.45 lakh workers.
• This represents a drop of about 1.5%, bringing the total to 10.96 crore workers.
• This figure is down from 11.13 crore in 2015-16.

Insights on Manufacturing Sector Growth

• Post-Covid Recovery:
• Thus, this data indicates a clear recovery from the Covid shock, highlighting an upswing in the manufacturing sector.

ASI Overview

• Survey Coverage:
• The ASI serves as the principal source of industrial statistics, focusing on organized manufacturing.
• It includes factories employing 10 or more workers using power and those employing 20 or more workers without power.

Key Growth Drivers

• Main Contributors to Growth: Key industries driving manufacturing growth in 2022-23 included in the following.
• Basic Metal
• Coke & Refined Petroleum Products
• Food Products
• Chemical Products
• Motor Vehicles

Employment Contribution by States

• Top Five States: The five states employing the highest number of persons in manufacturing are given below.
•   1. Tamil Nadu
•   2. Maharashtra
•   3. Gujarat
•   4. Uttar Pradesh
•   5. Karnataka

Gross Value Added (GVA)

• GVA Rankings: In terms of Gross Value Added (GVA) for 2022-23, the rankings are as follows.
•   1. Maharashtra
•   2. Gujarat
•   3. Tamil Nadu
•   4. Karnataka
•   5. Uttar Pradesh
• Output Contribution: These sectors collectively contributed about 58% of the total output, with output growth of 24.5% and GVA growth of 2.6% compared to 2021-22.

Employment and GVA Comparisons

• Pre-Pandemic Employment Levels: The estimated number of persons engaged in manufacturing industries in 2022-23 is higher than pre-pandemic levels (2018-19) by over 22.14 lakh.
• Average Emoluments Increase: Average emoluments per person in the sector rose by 6.3% in 2022-23 compared to the previous year.

State Employment Contributions:

• The top five states also accounted for about 55% of total manufacturing employment.

Capital Investment Growth

• Gross Fixed Capital Formation: There was a substantial increase in gross fixed capital formation in the manufacturing sector.
• It grew by over 77%, reaching Rs 5.85 lakh crore in 2022-23.
• This marks a significant rise from Rs 3.3 lakh crore in 2021-22.
• Net Fixed Capital Formation: Net fixed capital formation surged by 781.6% to Rs 2.68 lakh crore.
• Manufacturing Sector Profits: Profits in the manufacturing sector grew by 2.7%, reaching Rs 9.76 lakh crore.

Material Stock Changes

• Stock of Materials: In 2022-23, the addition to stock of materials, fuels, and semi-finished goods contracted by over 50%, while the addition to finished goods stock decreased by 36.1%.
• These findings illustrate a strong recovery and growth trajectory for India’s manufacturing sector.
• They highlight significant employment gains and an increase in capital investment in the post-pandemic landscape.
• This positive trend reflects the resilience and potential of the sector as it navigates the evolving economic environment.

Key Highlights from the ASI 2022-23 Results

• The Annual Survey of Industries (ASI) for the financial year 2022-23 presents several notable findings that reflect the health and growth of the manufacturing sector.
• GVA Growth: Gross Value Added (GVA) saw a significant increase of 7.3% in current prices compared to 2021-22.
• Input costs rose by 24.4%, while output grew by 21.5%, indicating a robust production environment.
• Comprehensive Sector Growth: The year 2022-23 marked positive trends across various economic parameters, including invested capital, input, output, GVA, employment, and wages.
• This growth surpassed pre-pandemic levels in absolute terms, highlighting a strong recovery.
• State Contributions: Among the major states, Maharashtra ranked first in terms of GVA, followed closely by Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh.
• Collectively, these top five states contributed more than 54% of the total manufacturing GVA in 2022-23.
• The value of some key parameters from ASI 2018-19 to ASI 2022-23 in current prices is given in the table.

• The value of some Structural Ratios & Technical Co-efficient from ASI 2018-19 to ASI 2022-23 in current prices is given in the table.

Top Industries 

• For a few important characteristics, top five industries at all-India level having major percentage shares in the estimated value of overall aggregate are mentioned in the table below.

Top States

• Top five states in terms of their percentage shares in the value of overall aggregates for each of the characteristics as under:

Visualizations from the ASI 2022-23 Results

• Waterfall chart showing change in absolute value (in ₹ Lakh) in a few important parameters from 2021-22 to 2022-23: All –India

Map showing Top 10 industries account for 72% of Manufacturing GVA:

• Bar chart showing the manufacturing employment by major sub-sectors in 2022-23:

Tamil Nadu's Leading Role in Factory Employment

• Top State in Employment: Tamil Nadu is the state with the highest number of persons employed in manufacturing, accounting for 15% of the total manufacturing workforce in India.
• Total Employment Figures: The total number of persons engaged in factories across India is 1,84,94,962.
• Number of Factories: Tamil Nadu has the highest number of factories, comprising 15.66% of the total 2,53,334 factories in India.

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