India’s manufacturing sector showed resilience in FY23, with gross value added (GVA) growing 7.3% and industrial output rising 21.45%
Employment in manufacturing grew by 7.43%, while labour productivity increased by 26% compared to pre-pandemic levels in 2018-19
The share of profits in net value added (NVA) remains above pre-pandemic levels, but wages and emoluments are still below those benchmarks
Concentrated in five states (Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh) and in capital-intensive sectors like metals and chemicals
India’s manufacturing sector has struggled to generate enough jobs, especially in low-skilled areas, leaving many dependent on agriculture
To ensure sustainable growth, India must focus on diversifying investment across regions and sectors, creating jobs in labour-intensive industries