On 30 September 2024, the Ministry of Statistics and Programme Implementation (MoSPI) released the results of the Annual Survey of Industries (ASI) for the reference periods of April 2022 to March 2023 (i.e. financial year 2022-23). The results are referred to in the press release of ASI 2022-23.
Before going further, it is pertinent for readers to understand how Gross Value Added (GVA) is calculated. GVA is calculated by subtracting intermediate consumption (input) from the gross value of output.
According to the Survey, the industrial output has increased by 21.5 percent and the estimated employment in the sector showed a robust growth of 7.4 percent in 2022-23. Let us delve into the key highlights of the ASI results.
Key highlights from ASI 2022-23 results
The findings indicate that in 2022–2023, as compared to 2021–2022, the Gross Value Added (GVA) increased by 7.3 percent in terms of current prices.
In the sector, output increased by 21.5 percent and input by 24.4 percent in 2022–2023 compared to 2021–2022.
Most of the key economic indicators, including invested capital, input, output, GVA, employment, and salaries, witnessed growth in this sector in 2022–2023. In absolute terms, the industry even outperformed its pre-pandemic level indices.
The manufacturing of basic metal, coke and refined oils, chemical and chemical products, food products, and motor vehicles are the key drivers of this growth in 2022-23.
All these industries, put together, contributed around 58 percent of the total value output of the sector and showed an output growth of 24.5 percent and GVA growth of 2.6 percent compared to 2021-22.
Number of people working in this sector in 2022–2023 has exceeded the pre-pandemic level (i.e.2018–19) by around 22.14 lakh.
Furthermore, average earnings increased in comparison to the prior year during this same period. In addition, the average salary for workers in this industry increased by 6.3 percent in 2022-23 compared to 2021–22.
The top five states in terms of GVA in ASI 2022-23 are ranked as follows:
- Maharashtra (16.33%)
- Gujarat (14.78%)
- Tamil Nadu (10.33%)
- Karnataka (7.04%)
- Uttar Pradesh (6.09%)
Together, these top five states accounted for more than 54 percent of the nation’s manufacturing GVA in 2022–2023.
The top five states in terms of employment (i.e. employing the number of persons in this sector) in ASI 2022-23 are ranked as follows:
- Tamil Nadu (15.00%)
- Maharashtra (12.84%)
- Gujarat (12.62%)
- Uttar Pradesh (8.04%)
- Karnataka (6.58%)
When combined, these states accounted for almost 55 percent of the total manufacturing jobs in 2022–2023.
What does this data mean to policymakers?
The gap for calculating the numbers is now reduced to three months from more than one year, with the availability of data for 2022-23.
This also means that the overall GDP can result in higher growth, as the ASI results are considered for calculating the numbers. Therefore, one can expect a revision of GDP forecast numbers upwards by the policymakers. This can make us aim to have 8-10 percent growth.
(The author of this article is Madhusudhanan S, an Economist and former consultant with the Government of India in New Delhi. He has 16 years’ experience in Economics Policy and was associated with CMIE, Government of Tamil Nadu, Union Planning Commission, and Union Ministry of Finance).
