A typical woman-owned informal manufacturing unit is about half the size of one owned by a man. The GVA or gross value added per worker is about one-third, indicating productivity loss.
Between 1993-94 and 2019-20, the annual growth rate in employment in Indian manufacturing was about 2.2% (in comparison, that of aggregate jobs was about 1.4% per year). In the years 2020-21 through 2023-24, the average annual growth rate in manufacturing employment was about 5.5% (Goldar and Aggarwal 2024), exceeding the aggregate employment growth rate of 4.3%.
The growth rate in manufacturing employment in different states in recent years differed significantly (Figure 1). Some states recorded a growth rate of about 10% per annum or above (Rajasthan, Jharkhand, Madhya Pradesh, and Bihar), whereas some other states recorded negligible growth in manufacturing employment or even a fall (for example, Tamil Nadu). The inter-state pattern of manufacturing employment growth is positively correlated with the increase in rural female workforce participation rate (RFWPR) (Figure 2). This is expected because of the significant rise in RFWPR between 2017-18 and 2023-24, resulting in an increase in rural female workers by about 80 million, 9% of whom took up manufacturing sector jobs (Goldar and Aggarwal 2024).
Figure 2. Change in RFWPR and growth rate in manufacturing employment
Feminisation of the industrial workforce
Between 1999-2000 and 2011-12, female share in incremental manufacturing employment was 22%. Between 2017-18 and 2023-24, the female share in incremental manufacturing employment was 74%, of which rural females accounted for 46 percentage points. This pattern seen in the growth in manufacturing employment in recent times is a manifestation of the feminisation of industrial labour in India.
The share of females in incremental manufacturing employment differed among states (Figure 3). Gujarat, Maharashtra and Rajasthan accounted for about 45% of the increase in aggregate manufacturing employment between 2018-19 and 2023-24. The female share in incremental manufacturing employment in these states was relatively small (an average of about 36%). On the other hand, the female share in incremental manufacturing employment was about 90% in Bihar and 85% in Assam. In several states, the increase in female employment in manufacturing exceeded that in total employment because the number of male manufacturing workers declined. In Kerala, for example, total employment in manufacturing increased by 30,000 between 2018-19 and 2023-24, whereas female employment increased by 65,000. Such a pattern was also found in Karnataka and Andhra Pradesh. Evidently, the feminisation of industrial labour in India was geographically segmented.
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