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September 01, 2015

Five States Account for More than Half of India's Factory Jobs

Courtesy: Mint


In this Mint article, the author states some fascinating figures about India's factory jobs. He writes "Just five states—Tamil Nadu, Maharashtra, Andhra Pradesh, Gujarat and Karnataka—account for 56% of factory jobs in the country. The share of the top five states has not changed much since 1970-71, when they accounted for 64% of the total industrial workers in the country....Andhra Pradesh saw the biggest gain in factory employment, followed by Tamil Nadu. West Bengal saw the biggest decline in factory employment, followed by Maharashtra. West Bengal’s predicament in terms of manufacturing jobs can be understood from the fact that it has suffered a 23% decline in the number of manufacturing workers between 1970-71 and 2011-12.


Delhi is the only other state to have suffered an absolute decline of around 5% during this period. Delhi’s loss might largely be due to a Supreme Court order that led to the closure of 168 industrial units in 1996. Maharashtra stands out in this group of major Indian states, as it has suffered the second highest fall in industrial employment, yet maintained its position among the top five states....


The decline of factory jobs in West Bengal and the spurt in such jobs in states such as Andhra Pradesh and Tamil Nadu partly reflects the different attitudes to businesses in these states, argued renowned development economist Pranab Bardhan in an interview to The Telegraph".

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