Manufacturing investment in India grows 20% in FY20

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Manufacturing investment in India grows 20% in FY20

In the previous fiscal year, manufacturing sector investments grew 20% compared to the previous fiscal, even as the rent payout, interest paid and profits fell. As per the provisional Annual Survey of Industries ASI released by the Ministry of Statistics and Programme Implementation for FY 20, gross fixed capital formation GFCF was Rs 4.15 lakh crore compared to Rs 3.44 lakh crore in FY 9. There was a 1.7% increase in the number of factories in the country. In the year 2019 -- 20, employment in the corporate sector, including public and private government and non-government companies, increased 5.5% to 97.03 lakh. The most comprehensive data on organised manufacturing is provided by the ASI, the main source of industrial statistics in India. It covers all factories employing 10 or more workers using power and those employing 20 or more workers without power. Employment in individual proprietorship fell by 3.1% to 11.36 lakh and the partnership sector fell 11.7% to 18.58 lakh in FY 20 while the limited liability partnership rose 42% to 1.22 lakh. The highest number of workers employed in factories in states was in Tamil Nadu, followed by Maharashtra and Gujarat. According to the survey, the number of workers increased by 2.02% to 1.3 crore. In the previous fiscal, total wages provided to factory workers rose to Rs 2.29 lakh crore from Rs 2.15 lakh crore. The profits of these factories fell by 16% on-year to Rs 4.67 lakh crore from Rs 5.56 lakh crore in FY19. This is the second straight contraction on profits. The survey was conducted through the ASI Web Portal from April 2021 to January 2022. The field work of ASI 2019- 20 was suspended for a long time due to the second wave of Covid 19 in the country which stretched the survey period beyond its stipulated time, the ministry said. The survey results are for the year before the Covid-19 epidemic. In FY 20, the urban sector had 1.43 lakh factories with fixed capital of Rs 13.64 lakh crore employing 72.79 lakh workers against 1.42 lakh factories, Rs 12.92 lakh crore fixed capital and 70.14 lakh workers in 2018 -- 19. In 2019 - 20 the rural sector had 1.03 lakh factories with fixed capital of Rs 22.71 lakh employing 57.78 lakh workers while in FY 19 there were 1 lakh factories with fixed capital of Rs 21.74 lakh crore that employed 57.83 lakh workers.