‘Rise in average wages of factory workers’

The results of Annual Survey of Industries (ASI) for 2008-09 has revealed that the manufacturing units in the county added about `5,30,000 crores to the national income, which was 9.56 per cent higher than the preceding financial year.

The government survey, which was released on Friday by minister of state for statistics and programme implementation Sriprakash Jaiswal, however, also revealed that the average wages of factory workers in India had gone up but the level of efficiency of workforce had declined.
The average annual wage of factory workers rose by over nine per cent to `68,103 between 2007-08 and 2008-09, says the ASI. The disheartening feature of the survey, however, was the marginal decline in efficiency as measured by changes in the capital output ratio.
“The capital output ratio which is a measure of the capital required to produce one unit of net output (net value added) has increased from 1.76 in 2007-08 to two in 2008-09,” the survey said.
Similarly, the capital required to produce one unit of gross output has also increased from 0.3 to 0.32 during the one-year period, the survey said, adding that the level of efficiency (ratio of net value to gross output) has “slightly declined over the previous year from 0.17 to 0.16”.
The survey further points out that a large number of factories are employing up to 49 workers.
There are 72 per cent of total factories employing workers in the range of 0-49 and their share in total net value added is only eight per cent.
Interestingly, only 274 factories (0.18 per cent of total factories) are creating employment as high as 5,000 and above. These units contribute about 14 per cent of the total net value added.
The study indicates that in India, the highest number of working factories is in Tamil Nadu (16.82 per cent) followed by Maharashtra (13.17 per cent).
Maharashtra had the highest share of invested capital at 17.01 per cent followed by Gujarat at 16.08 per cent and Tamil Nadu at 9.57 per cent.

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