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Tamil Nadu Women In Manufacturing And India’s Industrial Growth

Gandhimathi A

Tamil Nadu Strengthens Its Position In Women-Led Electronics Manufacturing

Source: Indian Express
GS III: Indian Economy, Inclusive Growth

Overview

  • Tamil Nadu has emerged as a leading state in women-led manufacturing, particularly in electronics and electrical equipment industries.
  • Gujarat has witnessed a decline in women’s employment share in these sectors, indicating a changing geographical distribution of manufacturing jobs.
  • The expansion of contractual employment highlights concerns over job security and the lack of gender-wise data on contract workers.
  • Women-friendly industrial infrastructure, including safe accommodation, childcare and workplace facilities, is essential to promote women’s workforce participation and inclusive industrial growth.

Why in the News?

According to the latest Annual Survey of Industries (ASI) for 2024-25, Tamil Nadu has strengthened its position in women-led manufacturing, particularly in the computer, electronic and optical products sector.

News in Brief
  • Tamil Nadu’s share of directly employed women in computer, electronic and optical products manufacturing increased from 42.9% in 2023–24 to 44.4% in 2024–25.
  • Its share in electrical equipment manufacturing also rose from 25.5% to 26.2%, while Gujarat witnessed a decline in both segments.
  • Tamil Nadu accounts for 40.3% of India’s directly employed female factory workers, strengthening its position as a major centre of women-led manufacturing.
  • The state’s manufacturing ecosystem increasingly depends on migrant workers, with factory-linked dormitories and accommodation helping address women’s mobility and residential challenges.
Annual Survey of Industries (ASI)
  • The Annual Survey of India (ASI) is one of the most important surveys conducted in the country and covers the formal manufacturing sector.
  • The survey is conducted by Ministry of Statistics and Programme Implementation (MoSPI).
  • It provides insights into how the country’s and each state’s manufacturing industries are changing and are key in calculating the GDP and formulating government policy.
Tamil Nadu’s Growing Role in Women Employment
  • Tamil Nadu accounted for 44.4% of directly employed women in India’s computer, electronic and optical products manufacturing sector in 2024–25, compared with 42.9% in the previous year.
  • Its share in electrical equipment manufacturing increased from 25.5% to 26.2%.
  • Overall, Tamil Nadu continues to employ 40.3% of all directly employed female factory workers in India.
  • The state has developed a manufacturing ecosystem that provides employment opportunities for women, particularly in electronics-related industries.
Changing Manufacturing Landscape-Tamil Nadu vs Gujarat
  • Gujarat witnessed a decline in its share of women employed in manufacturing:
    • Computer, electronic and optical products: Declined from 10% to 7.4%.
    • Electrical equipment: Declined from 6.5% to 4%.
  • The number of directly employed women in Gujarat also declined:
    • Computer, electronic and optical products: Reduced by 335 workers.
    • Electrical equipment: Reduced by 942 workers.
  • This indicates a changing distribution of women workers across India’s major manufacturing states.
Rise in Contractual Employment
  • India’s manufacturing sector has witnessed an increase in directly employed male and female factory workers, alongside a substantial rise in contract workers.
  • Tamil Nadu recorded a decline in contract workers in computer, electronic and optical products manufacturing, while Karnataka witnessed an increase.
  • The Annual Survey of Industries does not provide a gender-wise break-up of contract workers, making it difficult to assess the actual participation of women in contractual employment.
Women-friendly Industrial Infrastructure
  • Tamil Nadu’s manufacturing model highlights the importance of providing accommodation close to workplaces.
  • Distance between workplaces and residential areas, along with inadequate living arrangements, often restricts women’s participation in factory employment.
  • Factory-linked dormitories and accommodation facilities help migrant women workers access employment opportunities.
  • Such facilities are particularly important for southern states facing population ageing and increasing dependence on migrant labour.
  • A report by the Tamil Nadu State Planning Commission on migrant workers in the Chennai region, submitted in March 2025, highlighted that;
    • Around 86% of the 811 surveyed migrant workers came from Bihar, Odisha, Assam, Uttar Pradesh and Jharkhand.
    • More than 55% of the surveyed migrant workers were employed in the manufacturing sector.
    • The report did not provide a gender-wise break-up.
  • Thus, industrial accommodation can serve as an important intervention for improving women’s workforce participation.
National Manufacturing and Employment Trends
  • The latest ASI-related figures also indicate an expansion of India’s factory sector.
    • The number of factory workers increased by 7.3% nationally to 1.67 crore.
    • The number of factories increased by 2.6% to 2.71 lakh.
    • This was the first time in more than a decade that India recorded factory growth of over 2% in two consecutive years. Factory numbers had increased by 2.7% in 2023–24.

Other important observations include:

  • Factory wages:
    • Average factory wages increased by 5.3% nationally to Rs 2.28 lakh per worker in 2024–25.
    • Jharkhand was the only state where factory workers received lower average wages than in the previous year.
    • Average wages in Jharkhand declined by 5.2%.
    • However, its average annual factory wage of Rs 3.04 lakh remained higher than the national average, behind Sikkim (Rs 4.06 lakh) and Goa (Rs 3.14 lakh).

Regional Industrial Development

  • Tamil Nadu retained its position as the state with the highest number of factories and factory workers.
  • Uttar Pradesh emerged as an important contributor to industrial expansion.
Significance for India
  • Greater participation of women in manufacturing promotes inclusive economic growth by improving household incomes, financial independence and employment opportunities.
  • It also helps India utilize its demographic dividend by bringing more women into the productive workforce.
  • A diverse workforce strengthens manufacturing competitiveness and supports India’s ambition to become a global manufacturing hub.
  • Tamil Nadu’s experience highlights how women-friendly industrial infrastructure and employment policies can promote balanced regional development.
  • Further, safe accommodation and better living conditions can facilitate the integration of migrant workers into industrial centres.
Challenges Ahead
  • Despite the progress, women’s participation in manufacturing faces several challenges, including the lack of gender-disaggregated data on a contractual employment, wage disparities and unequal career opportunities.
  • Inadequate social security for contract workers, occupational safety concerns and limited access to affordable housing and childcare facilities further restrict women’s workforce participation.
  • Moreover, the uneven geographical distribution of manufacturing opportunities creates regional disparities in industrial employment.
Way Forward and Conclusion

India should improve gender-disaggregated labor data, provide safe accommodation and childcare facilities and ensure equal wages and social security for women workers. Promoting women’s skills and leadership through women-friendly industrial policies is equally imporant.

Tamil Nadu’s experience highlights how supportive infrastructure and employment opportunities can promote inclusive growth and strengthen India’s manufacturing competitiveness.

 

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