In manufacturing, leather and pharma lead employment-intensity

The top five manufacturing industries in the order of their employment intensity are: leather and leather goods, pharmaceuticals, textiles, engineering & capital goods, and auto components & ancillary

CRISIL has analysed the employee strength of 2,450 micro, small, and medium enterprises (MSMEs) in the service sector in 2012-13 (refers to the financial year, April 1 to March 31). The study was conducted to compare the employment generation potential of various industries in the manufacturing sector. The results indicate that employment-intensity is highest in enterprises involved in the leather and pharmaceutical industries.

The top five manufacturing industries in the order of their employment intensity are: leather and leather goods, pharmaceuticals, textiles, engineering & capital goods, and auto components & ancillary. As India is a major leather producer and its leather industry is among the top ten foreign-exchange earners for the country, positive policy support and incentives for this sector would not only strengthen the country's position in the global leather goods market but also create employment avenues for semi-skilled and skilled labour. Similarly, a positive environment for pharmaceutical outsourcing and investments by multinational companies (MNCs) will not only boost industry growth but also bring in valuable foreign exchange while generating additional employment.

Note: The analysis is based on the latest audited financial statements and information of CRISIL-rated MSMEs. CRISIL rates over 50,000 MSMEs in India. This fortnightly tracker brings to our readers insights on MSMEs, a key element of the Indian economy.