More reports on: Economy - general
Number of industrial units in India grew 2.3 per cent in 2009-10 news
02 January 2012

The total number of industrial units in the country grew 2.3 per cent year-on-year to an estimated 1,58,877 during the financial year April 2009-March 2010, provisional figures of the Annual Survey of Industries 2009-2010 released by the National Sample Survey Organisation  (NSSO) showed.

Among industries, factories under the `food products' group accounted for 16.5 pet cent of all factories across all industries, while 'other non-metallic mineral products' accounted for 11 per cent and 'textiles' 8.4 per cent of the total number of factories in the country.

Among the states, Tamil Nadu reported the highest share (16.9 per cent) in the number of factories while Maharashtra had 12.2 per cent, Andhra Pradesh 10.8 per cent, Gujarat 9.8 per cent and Uttar Pradesh 6.9 per cent of the total number of factories in the country.
Investments in fixed capital at current prices grew 28 per cent against 25 per cent the previous year. At constant prices (2004-05), however, the growth was lower at 18 per cent, against 25 per cent in 2009-2010.

Basic metal industries recorded the highest investment in fixed capital, at 21 per cent, followed by coke and refined petroleum products, at 10.7 per cent.

Among states, Gujarat had the highest share in fixed capital formation, at 17.7 per cent, followed by Maharashtra (14.6 per cent), Tamil Nadu (9.8 per cent), Andhra Pradesh (9.6 per cent) and Karnataka (7.1 per cent).

Employee compensation

Employment in terms of total number of people engaged has increased 4.1 per cent year-on-year, whereas the emolument (compensation) to employees increased by 13.6 per cent at current prices and by 11.1 per cent in real terms.

Among all industries, food products generated the highest employment, at 12.5 per cent, followed by textiles (11.7 per cent), basic metals (7.6 per cent), wearing apparel (7.3 per cent) and other non-metallic mineral products (6.8 per cent).

Performance of top ten states in terms of employment, along with their percentage share in all India employment figure is given below:

Top Ten States
Share (%)
Tamil Nadu
Andhra Pradesh
Uttar Pradesh
West Bengal

In terms of emoluments or compensation to employees, basic metal industries had the highest share of 10.1 per cent, followed by machinery and equipment (8.5 per cent), food products (8 per cent), textiles (7.7 per cent) and motor vehicles, trailers and semi-trailers (7.5 per cent).

Value addition

The gross value added by industrial units in the country has grown 12.4 per cent at current prices and 10 per cent in constant (2004-05) prices, year-on-year, against 10.6 per cent and 4 per cent, respectively, in 2008-09.

Industrywise, basic metals, chemicals and chemical products and coke and refined petroleum products occupied the first three positions with GVA shares of 13 per cent, 10 per cent and 8 per cent, respectively.

Performance of top ten states in terms of GVA, along with their percentage share in all India GVA is given below:

Rank in terms of GVA
GVA Share (%)
1 Maharashtra
2 Gujarat
3 Tamil Nadu
4 Andhra Pradesh
5 Karnataka
6 Uttar Pradesh
7 Haryana
8 Rajasthan
9 West Bengal
10 Uttarakhand

Efficiency suffers

The survey revealed that in 2009-10, a factory with an average investment of Rs851 lakh in fixed capital have provided gainful employment to 74 persons, produced goods and services at ex-factory prices worth Rs2,343 lakh and contributed by way of net value added by manufacture Rs366 lakh to the national income.

However, taking an employee as a unit of measurement, the survey revealed that an employee in the organised manufacturing sector during 2009-10 has, on an average, worked with a fixed capital stock of Rs11,45,888, gave an output of Rs31,56,818 and contributed to the national income by way of net value added by manufacture Rs4,93,541. The corresponding averages in the preceding year were, Rs9,32,216, Rs28,89,254 and Rs4,65,916, respectively.

Capital-output ratio, which is a measure of the capital required to produce one unit of net output (net value added) has increased from 1.98 in 2008-09 to 2.32 in 2009-10. The capital required to produce one unit of gross output has also increased from 0.32 in 2008-09 to 0.36 in 2009-10. Level of efficiency (ratio of net value added to gross output) has, however, remained at the same level (0.16).

While the average number of employee working per factory has marginally increased from 73 in 2008-09 to 74 in 2009-10, average emoluments per employee has increased from Rs1,14,272 to Rs1,24,664 at current prices during the same period.

Fuel consumed to produce one unit of output, however, marginally decreased to 0.04 in 2009-10 from 0.05 in 2008-09.

The survey is based on information on factories registered under the Factories Act, 1948 and Bidi and Cigar establishments registered under the Bidi and Cigar Workers (Conditions of Employment) Act, 1966. The survey was carried out during 2010-11 throughout the country with a reference period coinciding with the fiscal year 2009-2010.

Total sample size for the survey was 61,080, which represented about 30 per cent of the total population and was drawn adopting stratified circular sampling procedure, an official release said.

 search domain-b
Number of industrial units in India grew 2.3 per cent in 2009-10