Factory wages rose 5% in FY25, but fell in Jharkhand, Pg13

Key Highlights:

• National factory wages increased by 5.3% to ₹2.28 lakh in the fiscal year 2024-25.
• Jharkhand was the only state to record a decrease in factory wages, falling by 5.2% in FY25.
• Despite the decline, Jharkhand's average factory wage of ₹3.04 lakh remained the third highest nationally, after Sikkim and Goa.
• The number of factories in India grew by 2.6% in FY25, marking the first time in over a decade with successive years of more than 2% growth.
• Uttar Pradesh registered the largest increase in both the number of factories (12.8%) and factory workers (14%) in FY25.

Detailed Insights:

• The data is derived from the Annual Survey of Industries (ASI), conducted by the Ministry of Statistics and Programme Implementation (MoSPI).
• Jharkhand's wage reduction in FY25 is considered a market correction, following its position as the highest-paying state in FY23 and FY24.
• The state saw a 9% rise in factory workers to 2.08 lakh in FY25, even as the number of factories slightly decreased.
• Bihar recorded the highest wage growth among major states, with a 16.7% increase to ₹1.63 lakh, despite a 2% fall in its worker count.
• Tamil Nadu continues to hold the largest share of factories (15.4%) and factory workers (26.1 lakh) across India.
• Gujarat experienced a 1% reduction in its number of factories and reported a below-average wage growth of 2% in FY25.
• The ASI provides crucial insights into manufacturing trends, aiding in Gross Domestic Product (GDP) calculation and policy formulation.

Key Concepts Involved:

• Annual Survey of Industries (ASI): A comprehensive survey by MoSPI that collects data on India's formal manufacturing sector.
• Ministry of Statistics and Programme Implementation (MoSPI): The central government ministry responsible for statistical activities and program implementation in India.
• Gross Domestic Product (GDP): The total monetary value of all finished goods and services produced within a country's borders in a specific period.