Union Finance Minister Nirmala Sitharaman hailed the recently reported remarkable surge in manufacturing jobs and wages for workers in FY-23. As per a government survey, manufacturing jobs have risen by 7.6% and wages saw a 5.5% boost in FY-23.
“Under the leadership of Prime Minister Narendra Modi, India’s manufacturing sector has not only rebounded but is now thriving,” she said.
The nationwide employment in the manufacturing sector has seen an impressive rise from 1.6 crore workers in 2018-19 to 1.9 crore in 2022-23. A higher concentration of employment in factories was also observed, as the number of workers per factory also increased 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%, with workers now earning an average of ₹2.05 lakh annually (wages per worker has seen a rise from Rs. 1.69 lakh in 2018-19 to Rs. 2.05 lakh in 2022-23.)
Gross Value Added (GVA) in manufacturing, that is the economic value generated, has risen by over 21% from 2021-22 to 2022-23. GVA, a key marker of economic activity, clearly indicates that India's manufacturing engine is roaring.
“The surge in GVA by over 21% is a clear indication that India’s manufacturing sector is firing on all cylinders,” said Sitharaman.
BJP-ruled states have become the powerhouses of India’s manufacturing revolution, driving massive growth in both output and employment. At the forefront of this success are Gujarat, Uttar Pradesh, and Maharashtra.
Gujarat, known for its entrepreneurial spirit, is at the top with 17.7% of the total output, while Maharashtra the industrial heartland of India follows closely with 14.6% share of total output. Uttar Pradesh, India’s most populous state, contributed 7.1% to the national manufacturing output.
In terms of employment, Maharashtra has performed exceptionally well, with 12.8% of the total no. people employed. Gujarat follows next with 12.6% of all no. of people employed, while Uttar Pradesh, India’s most populous state, contributed to 8.1% of the manufacturing jobs (in 2022-23).
In terms of the number of factories in operation, these three BJP-ruled states have secured top spots with Gujarat contributing 12.2% at 2nd rank, Maharashtra 10.4% at 3rd rank and Uttar Pradesh 7.5% ranking 4th. NDA ally state Andhra Pradesh ranks 5th with 6.5% of factories.
These three BJP-ruled states—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% of India’s total manufacturing jobs.
“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 Nirmal Sitharaman said as she credited several key initiatives of the Modi government for this remarkable turnaround.
Modi government’s Production-Linked Incentive (PLI) Scheme has provided strong incentives for manufacturing industries across sectors like electronics and textiles, leading to the creation of lakhs of new jobs. Alongside this, the Make in India initiative, which recently completed 10 years, has revitalized the country’s manufacturing sector by driving a surge in domestic production and attracting foreign investment. The Aatmanirbhar Bharat push by PM Modi, a push for self-reliance, has also significantly boosted manufacturing. In parallel, the Labour Law Reforms introduced under the Modi government have made it easier for businesses to hire workers while simultaneously ensuring the protection of employee rights and improving working conditions. These reforms, coupled with India’s significant leap in Ease of Doing Business rankings, have made the country an attractive destination for both domestic and foreign investors, spurring industrial growth and large-scale job creation across the nation.
