India's Organised Manufacturing Employment Rises 30% To 21 Million In Four Years

New Delhi, Nov 6 (KNN) Employment in India's organised manufacturing sector increased by 30 per cent between 2021 and 2025, rising from 16 million to 21 million, according to data released by the Finance Ministry.

The growth comes amid the government's efforts to strengthen domestic manufacturing through initiatives such as the Production Linked Incentive (PLI) scheme, first introduced in 2020 to promote mobile phone manufacturing. 

The government subsequently extended PLI incentives across 14 sectors to boost domestic production and generate employment. The Finance Ministry data also showed that labour productivity increased by 30 per cent during the period, while wages rose by 29 per cent.

Five States Drive Manufacturing Employment Growth

According to the Finance Ministry, five states and seven industrial sectors were the primary contributors to organised manufacturing employment growth between 2021 and 2025.

Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Haryana together accounted for 56 per cent of manufacturing employment.

Tamil Nadu had the largest share at 15 per cent, followed by Gujarat and Maharashtra at 13 per cent each. Uttar Pradesh accounted for 9 per cent, while Haryana contributed 6 per cent.

Tamil Nadu has attracted the highest number of electronics manufacturing units, while Noida in Uttar Pradesh has emerged as a major mobile phone manufacturing hub, hosting production facilities of leading brands such as Samsung and Vivo.

Manufacturing employment in Uttar Pradesh alone increased by 60 per cent between 2021 and 2025.

Seven Sectors Account For 52% Of Manufacturing Employment

Seven industrial sectors accounted for 52 per cent of total employment in manufacturing. These include food products, textiles, basic metals, wearing apparel, chemicals and chemical products, machinery and equipment, and motor vehicles and related products.

Food products accounted for the largest share at 11 per cent, followed by textiles and basic metals at 8 per cent each.

Wearing apparel and motor vehicles and related products contributed 7 per cent each, while machinery and equipment accounted for 6 per cent and chemicals and chemical products for 5 per cent.

Private Enterprises Account For Three-Fourths Of Jobs

The Finance Ministry data also highlighted the significant role of private enterprises in manufacturing employment, with these firms accounting for three-fourths of jobs in the sector.

Partnership and proprietorship firms contributed another 21 per cent of manufacturing employment, while government-owned and cooperative institutions accounted for a relatively small share.

(KNN Bureau)