Factories, jobs on the decline in Telangana, says industries report

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HYDERABAD: Telangana climbed up two places to bag the eighth spot in the country in the Annual Survey of Industries (ASI) report, going by the State’s Net Value Added (NVA). The ASI report was released on Friday by the Ministry of Statistics and Programme Implementation (MosPI) for the financial year 2018-19. 

According to the report, the State is home to 15,167 factories engaging over 6.59 lakh workers. The NVA by these factories in the financial year was Rs 48,681 crore. In the previous financial year, Telangana stood tenth with an NVA of Rs 39,487 crore. NVA is calculated by deducting the cumulative of the total input costs incurred by factories for various purposes like fuel and raw materials, as well as the depreciation caused to their fixed capital from the total output of the factories.

Unfortunately, even though there was a rise in NVA of the factories from 2017-18 to 2018-19, it did not mean an increase in jobs or even number of factories. In 2017-18, there were 15,263 factories operating in Telangana that had engaged 6.69 lakh workers, but in the subsequent year, it decreased to 6.59 lakh workers as the number of factories declined to 15,167. 

The per capita wages paid to workers in Telangana is also lower than many States. Total wages paid in the year 2018-19 for 6.59 lakh workers in the State was Rs 9,355 crore, which makes it Rs 1.41 lakh per worker. Compared to this, Maharashtra paid Rs 2.14 lakh per worker and Tamil Nadu paid Rs 1.51 lakh per worker.

Also, Telangana is a distant eighth when it comes to the NVA. Maharashtra, with 25,972 factories, topped the list with an NVA of Rs 1.96 lakh crore. Among the southern States, Tamil Nadu had the highest NVA of Rs 1.4 lakh crore from 38,131 factories, standing third in the country. 

The position of neighbouring Andhra Pradesh fell from the 12th position in 2017-18 to 14th position in 2018-19, with 16,739 factories engaging 5.12 lakh workers and a NVA of just Rs 31,123 crore. 

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Both states have populations that are not educated well enough to work in factories.