Workplace injuries rise 8.5% and fatalities fall 21%, says IiAS study

Workplace injuries increased to 10,733 in FY23 from 9,889 in FY22, with high-consequence injuries rising by 33 per cent to 907 compared to 679 previously, shows an analysis done by Institutional Investor Advisory Services India Limited (IiAS), a governance firm, on Nifty 500 companies.

Total fatalities decreased to 463 in FY23 from 587 in FY22 but still account for more than one death per day.

In FY23, Nifty 500 companies employed a total workforce of 10.41 million, consisting of nearly 4 million workers and 6.4 million employees.

“Safety and welfare of workers on the factory floors are rarely matters of concern for the board and top management, whose pay structures continue to reflect a focus on the bottom line,” said IiAS in a release.

 

This is the first study of workplace safety in India after companies have begun publishing safety data on Business Responsibility and Sustainability Reporting (BRSR).

The study showed a strong correlation between health and safety training and reduced workplace injuries and fatalities.

According to the study, the percentage of workforce trained at public sector undertakings (PSUs) rose from 36 per cent in FY22 to 42 per cent in FY23, while for the private sector it rose from 67 per cent to 71 per cent. The average high-consequence work injuries fell from 2.4 per company in FY22 to 1.7 in FY23 in the case of private companies and from 2.1 per company to 1.3 per cent in the case of PSUs.

“Prioritising such training is a cost-effective strategy. Employers should extend health insurance benefits not only to 100 per cent of their workforce but also to contractual workers. Evidence suggests that increased health insurance coverage leads to reduced time lost due to injuries,” IiAS said.

The BRSR framework mandates the top 1,000 listed entities (based on market capitalisation) to file their BRSR report as part of their annual report with Sebi.

Out of the Nifty 500 companies, only 313 (62.6 per cent) have publicly disclosed their adherence to international safety standards, while the remaining 37.4 per cent have not made such disclosures.

As more companies start reporting health and safety data, it will enable better analysis of underlying trends.

“It is not only a regulatory requirement but also a moral obligation to protect workers and promote sustainable growth in India. Safe working conditions attract and retain skilled workers, enhance the reputation of businesses, and foster trust among stakeholders. This, in turn, can lead to long-term success and competitiveness in the market,” said Amit Tandon, MD and CEO, IiAS.