Wages rising, efficiency declining, says govt survey

Wages rising, efficiency declining, says govt survey

The average annual wage of factory workers rose by over 9 per cent to Rs 68,103 between 2007-08 and 2008-09, says Annual Survey of Industries (ASI) which was released here by Chief Statistician T C A Anant today.

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 2 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, "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 8 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 are 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.

The net value added was highest for Maharashtra at 21.39 per cent followed by Gujarat at 11.45 per cent and Karnataka at 8.06 per cent.

As far as efficiency of the type of industry is concerned in terms of net value addition, basic metals was followed by coke and refined petroleum products and chemicals and chemical products