Factory investment at 3-year low of Rs 3.31 lakh cr in 2017-18: Survey

Factory investment in 2017-18 hit a three-year low of Rs 3.31 lakh crore in actual terms, according to the annual survey of industries by the Statistics and Programme Implementation Ministry.

Factory investment measured in terms of gross fixed capital formation (GFCF) was Rs 3.79 lakh crore and Rs 3.69 lakh crore in 2015-16 and 2016-17, respectively, provisional estimates of the survey for 2017-18 showed.

The previous low of GFCF in actual terms was recorded at Rs 3.23 lakh crore in 2014-15.

The Gross Fixed Capital Formation is a barometer of investment in any sector or segment.

However, the survey showed that the number of factories increased to 2,37,684 in 2017-18 from 2,34,865 a year ago.

The number of employees also increased to 1.55 crore in 2017-18 from 1.48 crore in the previous year.

The Annual Survey of Industries (ASI) is the most important source of industrial statistics of the registered organised manufacturing sector and extends to the entire country. This provisional data is subject to change in the process of finalization.

The ASI covers all factories registered under Factories Act, 1948 i.e. those factories employing 10 or more workers using power; and those employing 20 or more workers without using power.

The survey also covers bidi and cigar manufacturing establishments registered under the Bidi & Cigar Workers (Conditions of Employment) Act, 1966 with coverage as above.

All electricity undertakings engaged in generation, transmission and distribution of electricity, not registered with the Central Electricity Authority (CEA) are also covered under ASI.

However, the defense establishments, oil storage and distribution depots, restaurants, hotels, caf and computer services, departmental units such as railway workshops, RTC workshops, Govt. Mints, sanitary, water supply, gas storage etc. are excluded from the purview of the Survey.

The units with 100 or more employees, not registered under the Factories Act, 1948 but registered under any one of the seven Acts in the Business Register of Establishments (BRE) prepared and maintained by the State Governments are considered.