Indian factories growing larger, getting clustered: Economic Survey

Number of persons engaged in larger factories was up 13.7 per cent compared to 4.6 per cent in smaller factories

India is shifting from smaller factories that are seen as less competitive, to larger ones that employ more people, shows data from the Economic Survey.

Both the number and share of large factories have gone up, according to an analysis based on pre-pandemic data in the economic survey, marking a shift in trend in a country where most of the factories have remained small and have fewer than 50 employees.

“Over time, there is a visible trend towards bigger factories employing more than 100 workers, their numbers rising by 12.7 per cent from FY17 to FY20, compared to a broadly