Statsguru: Formal manufacturing share falls, wage growth lags productivity

ASI and Annual Survey of Unincorporated Enterprises show that the combined share of manufacturing GVA in GDP stands at less than 10 per cent

The share of the formal sector manufacturing gross value added (GVA) in India's economy dropped from 8.68 per cent in 2021-22 to 8.15 per cent in 2022-23, while that of the informal sector increased from 1.18 per cent to 1.4 per cent. This raises concerns about formalisation in the manufacturing sector, according to an analysis of two separate sets of annual surveys of industries and unincorporated enterprises (ASI and ASUSE) (chart 1).

The Annual Survey of Industries (ASI) and the Annual Survey of Unincorporated Enterprises (ASUSE) show that the combined share of manufacturing GVA in