The Tata Group has announced an ambitious plan to create 500,000 manufacturing jobs over the next five years, expanding across critical sectors such as semiconductors, electric vehicles (EVs), batteries, and other related industries. This major development was revealed by Tata Group Chairman N Chandrasekaran during a symposium organized by the Indian Foundation for Quality Management on Tuesday.
Speaking at the event, Chandrasekaran underscored the pivotal role manufacturing will play in India’s aspiration to become a fully developed nation, known as “Viksit Bharat.” He emphasized that the country’s ability to achieve this goal hinges on job creation in the manufacturing sector.
Aiming for a “Developed India” Through Manufacturing
Chandrasekaran highlighted that India faces a massive challenge in generating jobs, with nearly one million new entrants joining the workforce each month. This has made job creation in the manufacturing industry crucial for the country’s economic future.
He shared his optimism regarding Tata’s efforts to contribute significantly, stating, “Between our (Tata Group’s) investments in semiconductors, precision manufacturing, assembly, electric vehicles, batteries, and related industries, I think we will create five lakh [500,000] manufacturing jobs in the next five years.”
Key Projects in Semiconductors, EVs, and Batteries
Among Tata Group’s upcoming projects is the much-anticipated semiconductor manufacturing facility in Assam. Chandrasekaran also touched on plans for expanding manufacturing units dedicated to electric vehicles and batteries, areas that are expected to play a crucial role in the global transition to sustainable energy solutions.
While the specifics of these projects are still being finalized, preliminary estimates indicate that Tata’s investments will have a significant ripple effect, generating numerous additional employment opportunities. Chandrasekaran mentioned that the expanding manufacturing ecosystem is likely to spur the creation of around 500,000 small and medium enterprises (SMEs) as well.
The Multiplier Effect of Job Creation in Key Sectors
Chandrasekaran further stressed the broader impact of job creation in sectors like semiconductor manufacturing, noting its potential for a “multiplier effect.” Sectors such as these can lead to a surge in indirect employment opportunities, thereby supporting broader economic growth. “We need to create 100 million jobs,” he concluded, underscoring the scale of India’s employment challenge.
India’s Manufacturing Sector Shows Strong Growth in FY23
India’s manufacturing sector has already shown significant progress in the financial year 2023 (FY23), which ended on March 31, 2024. The sector saw a 7.4% increase in employment, with 1.3 million new jobs added during the year, an improvement from the 1.1 million jobs created in FY22. This growth has been closely tied to the sector’s gross value added (GVA), which expanded by 7.3% to Rs 21.97 trillion, as reported by the National Statistical Organisation (NSO) and covered by Business Standard.
Industrial output also experienced a substantial boost, surging by 21.5% to reach Rs 144.86 trillion during FY23. Maharashtra led the way in GVA contributions from manufacturing, with Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh also playing major roles. Together, these five states accounted for 54.5% of India’s total manufacturing GVA.
Rising Wages and Employment Indicators
Workers in the manufacturing sector have seen improvements in their earnings, with the average emolument rising by 6.3% to Rs 3.46 lakh per annum in FY23, compared to Rs 3.25 lakh in the previous financial year.
Another positive indicator for the sector is India’s manufacturing Purchasing Managers Index (PMI), which hit a 16-year high of 59.1 in March 2024. A PMI above 50 indicates expansion in the sector, and although the PMI slightly decreased to 57.5 in August, it remains well above the threshold for growth, demonstrating the resilience of the manufacturing sector.
