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TN, Maharashtra beat Gujarat in manufacturing job generation

By Niranjan Mudholkar,

Added 24 September 2015

Andhra Pradesh & Karnataka are other states with significant share in this regard, according to ASSOCHAM study

"Lack of new investments is a real threat to the survival of manufacturing in India, as such there is a grave need to revive investments in food and beverage, textile sectors as they are highly labour-intensive and can create plenty of jobs," said Rawat.

Food products (12 per cent), textiles (11 per cent), basic metals (eight per cent), wearing apparel (seven per cent) and other non-metallic mineral products (seven per cent) were the top sectors accounting for highest share in employment generated by registered manufacturing sector in India as of 2012-13.

Apart from wearing apparel, all of the aforementioned sectors had recorded a negative year-on-year (YoY) growth rate in employment generation - food products (five per cent), textiles (four per cent), basic metals (six per cent), wearing apparel (0.0 per cent) and other non-metallic mineral products (five per cent).

Gujarat, over the years has emerged as a prominent manufacturing investment centre over the years thereby accounting for highest share ranging between 26-33 per cent in key product segments of non-metallic mineral products, textiles and food & beverages during 2004-05 and 2011-12, according to previous analysis by ASSOCHAM conducted about a year ago.

Besides, the state had acquired second highest share of about 25 per cent and over 18 per cent in investments attracted by transport equipment and chemicals industry respectively during the said period.

With a share of over nine per cent, Gujarat had figured on fifth rung amid states that had attracted highest share in total investments worth over Rs 30 lakh crore attracted by states across India.

Odisha (18 per cent), Karnatka (14 per cent), Jharkhand (13 per cent) and Andhra Pradesh (10 per cent) remained ahead of Gujarat in this regard.
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