In the wake of Ratan Tata’s passing, the Tata Group has made a significant announcement that is set to impact half a million people. Over the next five years, the conglomerate plans to create 500,000 manufacturing jobs across key sectors, including electric vehicles (EVs), semiconductors, batteries, and related industries. Speaking at a symposium organized by the Indian Foundation for Quality Management, Tata Group Chairman N Chandrasekaran emphasized that manufacturing will play a pivotal role in India’s ambition to become a developed nation.
Chandrasekaran highlighted the need for job creation to accommodate the growing Indian workforce, which sees approximately one million new entrants every month. He pointed out that achieving the goal of “Viksit Bharat” (Developed India) requires expanding employment opportunities in the manufacturing sector. “Between our investments in semiconductors, precision manufacturing, assembly, electric vehicles, batteries, and related industries, we believe we will generate five lakh [500,000] manufacturing jobs within five years,” Chandrasekaran stated.
In addition to the job creation plans, the Tata Group is investing in Assam, where the company is in the early stages of building a cutting-edge semiconductor facility. More factories are also in the pipeline to support the electric vehicle and battery sectors. Although the detailed blueprint is still being finalized, Chandrasekaran expressed optimism about the positive economic ripple effect these projects could trigger. He expects that alongside the creation of direct jobs, about 500,000 small to medium enterprises could emerge, contributing to the expanding manufacturing ecosystem.
India’s manufacturing sector has been witnessing impressive growth. Last year, 1.3 million jobs were created, up from 1.1 million in FY22, marking a 7.4% increase in employment. The gross value added (GVA) in the sector also surged by 7.3%, reaching Rs 21.97 trillion. Key contributors to this growth are Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh, collectively accounting for 54.5% of India’s total manufacturing GVA.
Salaries in the manufacturing industry have seen a rise as well, with the average annual salary increasing by 6.3%, reaching Rs 3.46 lakh in FY23 compared to Rs 3.25 lakh the previous year. Additionally, the Purchasing Managers Index (PMI) hit a 16-year high of 59.1 in March 2023, signifying robust growth in the sector. Although the PMI dipped slightly to 57.5 in August, it remains above the 50-point mark, indicating continued strong performance in India’s manufacturing sector.
