The latest Annual Survey of Industries (ASI) report from the Ministry of Statistics and Programme Implementation offers key performance insights on India’s organized manufacturing sector during the COVID-19 pandemic. While recording pandemic-induced declines in certain metrics like number of factories and net value added, the ASI data also shows resilient growth in areas like profits, investments and employment – indicating the sector’s foundations for navigating challenges.
Annual Survey of Industries (ASI)
The ASI report is the main statistical source for gauging the growth of organized manufacturing in India on various operational and financial parameters.
The survey covers factories engaged in manufacturing activities that employ 10 or more workers using power or 20 or more workers without using power. Key aspects tracked through the ASI include:
- Number of factories
- Fixed capital investments
- Employed workers
- Wages
- Gross output value
- Net value added
- Profits
The latest ASI provides comparative data for the pre-pandemic (2019-20) and two pandemic (2020-21 and 2021-22) financial years.
Scope of India’s Organized Manufacturing Sector
| Parameter | No. of Factories | Employees (in lakhs) |
| 2019-20 | 38,377 | 109 |
| 2020-21 | 29,876 | 78 |
| 2021-22 | 34,849 | 105 |
Pandemic Impact on Operational Metrics
The COVID-19 pandemic and associated lockdowns impacted India’s organized manufacturing performance significantly. Key contractions per the ASI report included:
- Reporting factories: -22% (2020-21) and -38% (2021-22) vs pre-pandemic
- Net value added: Reflecting activity declines during disruption
However, pandemic impacts varied across manufacturing segments owing to shifts in consumer demand and supply shocks. For example, chemicals, pharma, computers and optical products displayed employment gains – showing greater resilience.
Key Figures on Pandemic Impact
| Parameter | % Change in 2020-21 | % Change in 2021-22 |
| No. of Factories | -22% | -9% |
| Fixed Capital Formation | -6% | +2% |
| Net Value Added | -7% | +1.1% |
The above figures highlight the considerable shock felt by India’s organized manufacturing sector when the pandemic hit. But data from 2021-22 also indicates early signs of stabilization and recovery.
Employment Level Trends
As per ASI data, total employment in organized manufacturing contracted significantly during the pandemic:
- 2020-21: 28% decline (~31 lakh job losses)
- 2021-22: 4% decline
However, the steeper fall in 2020-21 was followed by some recovery in 2021-22 as economic activities reopened.
Additionally, sectors like chemicals, pharmaceuticals, computers and optical products witnessed net job creation despite the pandemic – highlighting crucial growth areas.
Employment Trends Across Key Sectors
| Sector | % Change 2020-21 | % Change 2021-22 |
| Chemicals & Pharma | +6% | +12% |
| Textiles | -46% | +14% |
| Automobiles | -44% | +8% |
| Computers/Optical | +10% | +46% |
While certain industries bore the brunt of job losses, growing segments like pharmaceuticals and technology hardware could tap growth tailwinds during the pandemic.
Growth in Invested Capital and Profits
Despite operational hurdles, India’s organized manufacturing sector showed financial resilience during the pandemic:
Invested capital rose significantly
-
- 2020-21: +46%
- 2021-22: + 56% (vs pre-pandemic)
Net profits growth
-
- 2020-21: +23%
- 2021-22: +96%
These metrics showcase sector’s enduring investment appeal and profit growth capacity even amid challenges – laying foundations for stability amid economic headwinds.
Invested Capital and Profits Growth
| Parameter | % Change 2020-21 | % Change 2021-22 |
| Invested Capital | +46% | +56% |
| Net Profits | +23% | +96% |
Manufacturing displayed business resilience – attracting investor capital and delivering profit increases although pandemic impacts were significant on operational metrics.
Regional Variations in Recovery
ASI data reveals regional variations in organized manufacturing recovery in 2021-22:
States with strong rebound
Gujarat
-
- Employment: +19%
- Value added: +28%
Karnataka
-
- Employment: +13%
- Value added: +11%
States lagging in recovery
Maharashtra
-
- Employment: +1%
- Value added: -5%
West Bengal
-
- Employment: +5%
- Value added: -6%
The uneven restoration of manufacturing across states remains an area needing policy attention for balanced, inclusive recovery.
Manufacturing Recovery In Major States
| State | % Change in Employment 2021-22 | % Change in Value Added 2021-22 |
| Gujarat | +19% | +28% |
| Karnataka | +13% | +11% |
| Maharashtra | +1% | -5% |
| West Bengal | +5% | -6% |
The uneven restoration of manufacturing across states remains an area needing policy attention for balanced, inclusive recovery.
Key ASI insights on organized manufacturing during pandemic
Pandemic impacts
- Employment declined 28% (2020-21)
- Number of factories fell 22% (2020-21)
Indicators of resilience
- Invested capital rose 46% and 56% (2020-21 & 2021-22)
- Net profits increased 23% and 96%
Priority recovery actions
- Accelerate struggling states e.g. Maharashtra, West Bengal
- Support vulnerable sectors e.g. textiles, automobiles
- Enhance competitiveness via PLI schemes, clusters
While inevitable pandemic impacts occurred, manufacturing displayed inherent strengths. Consolidating these via targeted state/sector intervention and boosting competitiveness can enable resilient, broad-based growth.