The Tata Group has outlined a major plan to create 500,000 manufacturing jobs in the next five years, focusing on key sectors such as semiconductors, electric vehicles (EVs), batteries, and related industries. Tata Group Chairman N Chandrasekaran shared this vision during a recent event organized by the Indian Foundation for Quality Management.

Chandrasekaran emphasized the crucial role manufacturing will play in India's ambition to become a fully developed nation, or "Viksit Bharat." He stressed that job creation in manufacturing is essential for the country to reach its goals, especially given that nearly one million people enter the workforce every month.

Boosting Manufacturing for a Developed India

Chandrasekaran expressed confidence in Tata’s ability to drive job growth, saying, “With our investments in semiconductors, precision manufacturing, electric vehicles, batteries, and more, I believe we will generate five lakh [500,000] manufacturing jobs over the next five years.”

Key Projects in Semiconductors, EVs, and Batteries

Tata's upcoming projects include a semiconductor manufacturing facility in Assam, alongside plans to expand EV and battery production. These initiatives are expected to have a strong impact on sustainable energy and the broader economy. Chandrasekaran also noted that Tata’s manufacturing investments could spur the creation of 500,000 small and medium enterprises (SMEs), further amplifying job opportunities.

Multiplier Effect of Job Creation

Chandrasekaran pointed out the "multiplier effect" of creating jobs in sectors like semiconductors, which can lead to indirect employment and broader economic growth. He stressed the importance of addressing India's employment challenge, stating, “We need to create 100 million jobs.”

India's Manufacturing Growth in FY23

India's manufacturing sector recorded significant growth in FY23, with a 7.4% rise in employment, adding 1.3 million jobs. This growth contributed to the sector’s gross value added (GVA) of Rs 21.97 trillion, according to the National Statistical Organisation.

Industrial output surged by 21.5% to Rs 144.86 trillion during the year, with Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh leading in manufacturing GVA. These five states contributed 54.5% of the country's total manufacturing GVA.

Positive Trends in Wages and Employment Indicators

The average wage in the manufacturing sector increased by 6.3% to Rs 3.46 lakh per annum in FY23. Additionally, India's manufacturing Purchasing Managers Index (PMI) hit a 16-year high of 59.1 in March 2024, signaling expansion in the sector. Despite a slight dip to 57.5 in August, the PMI remains strong, reflecting the resilience of India's manufacturing industry.

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Tata Group Aims to Create 500,000 Jobs in Five Years: Reports