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Tamil Nadu leads industrial job creation in India with 15 percent of total national workforce

The report said initiatives such as the Tamil Nadu Industrial Policy 2021 and other sector-specific incentives made the state an attractive destination for industries.

k. Nitika Shivani

Published Oct 01, 2024 | 3:26 PM ⚊ Updated Oct 01, 2024 | 3:26 PM

Tamil Nadu industrial jobs

Industrial workforce. (iStock)

According to the Annual Survey of Industries (ASI) 2022-23 released by the Union government on Monday, 30 September, Tamil Nadu accounts for 15 percent of all industrial jobs created in India, emerging as the top state in the country.

This significant contribution underlines the state’s commitment to industrial growth and inclusive development, said the report.

The report said initiatives such as the Tamil Nadu Industrial Policy 2021 and other sector-specific incentives made the state an attractive destination for industries.

Tamil Nadu’s focus on employment generation continues to set benchmarks across the country, said Chief Minister MK Stalin, who highlighted that every investment brought into the state is directed towards creating quality jobs for its youngsters.

 

The report underlined that programs like the Tamil Nadu Guidance Bureau facilitated investment and job creation, and ensured that employment generation was inclusive and sustainable.

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Comparison with other states

The report also suggested that Tamil Nadu has the highest number of factories, accounting for 15.56 percent of the total, followed by Gujarat (12.25%). Maharashtra, Uttar Pradesh, and Andhra Pradesh account for 10.44 percent, 7.54 percent, and 6.51 percent respectively of the total factories in India.

While Tamil Nadu contributes 15 percent of the total industrial workforce in India, Maharashtra accounts for 12.84 percent.

Gujarat has 12.62 percent of the total industrial workforce in India followed by Uttar Pradesh (8.04%) and Karnataka (6.58%)

In terms of industrial output, Tamil Nadu ranks third contributing 9.97 percent of the country’s total. This is behind Gujarat and Maharashtra with more efficient or higher-yielding factories.

According to the report, Tamil Nadu’s overall contribution to India’s industrial sector is 10.33 percent, illustrating a paradox: The state leads in the number of factories and workforce size while its productivity per factory or worker does not match up to its industrial peers.

This discrepancy may be due to several factors, such as the types of industries dominant in each state, infrastructure, technology adoption, or the efficiency of operations as suggested by the report.

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‘Testament to focus on inclusive growth’

Tamil Nadu Industrial Minister TRB Rajaa said the report was a testament to the DMK government’s relentless focus on employment generation and inclusive growth.

Meanwhile, D Muthukrishnan, a Certified Financial Planner (CFP) said on X, “Central government has released annual survey of industries for financial year 2022-23. 15% of all the industrial jobs created in India are from one state, Tamil Nadu. We are the manufacturing capital of the country.”

Contrary to the above observations, Baskaran Krishnamurthy, a political analyst and economist, expressed his concerns regarding the report.

According to him, even though there is a positive outlook on the number of jobs being created, the ground reality painted a different story.

He highlighted that most jobs are either temporary or contractual, with significantly lower pay compared to permanent positions. For instance, he pointed out that a guest lecturer on a temporary contract in a government college is paid ₹20,000 per month, while regular lecturers receive close to ₹1 lakh.

Krishnamurthy emphasised that the focus should not be on the number of jobs alone but also their nature — whether they were permanent, temporary or contractual, the pay scale, qualifications required, and terms of employment.

He argued that it was hard to be optimistic without detailed information since many workers were disappointed with the current situation.

“If the reality is indeed better than what I perceive, I would be happy to acknowledge it. But, for now, there is little to celebrate,” he added.

(Edited by Muhammed Fazil.)

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