Employment generation: India’s top 5 states

Employment generation in the country increased considerably in the eight-year period — 1998 to 2005, as compared to between 1990 and 1998, according to the Economic Census released by the government recently.

Employment grew at the rate of 2.78 per cent in 1998-2005, which is much higher than the 1.75 per cent recorded during 1990-98, the 5th Economic Census report said.

The report, compiled by the Central Statistical Organisation, listed the top five states in India in terms of employment generation. To know more, read on.

Jammu and Kashmir: Job growth — 6.82%

Farming, animal husbandry and tourism form an intergral part of the state’s economy. Though increased rated of terrorism and insurgency had hit the state’s tourism industry in the past, it has somewhat rebounded in recent years.


The Kashmir valley earns its revenue from sericulture, fisheries, and fruits like apples, pears, other temperate fruits as well as nuts. Wood from this area is used to make cricket bats. Kashmiri saffron too brings the state a handsome amount of foreign exchange.

In recent times, many FMCG companies have opened manufacturing units in the region. However, industrial development in the region seems a difficult proposition mainly because of the region’s mountaneous terrain and insurgency.

The Indian government has embarked on an ambitious Kashmir Railway to improve the state’s infrastructure.

In 2006, the state reported a gross state domestic product of Rs 539,850 million.

Andhra Pradesh: Job growth — 5.87%

Andhra Pradesh earns the most from agriculture, for which the state is also known as the rice bowl of India. Rice, sugarcane, cotton, mirchi, Mangoes and tobacco are the local crops.

Andhra Pradesh

The state has many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects and Nagarjuna Sagar Dam, the world’s highest masonary dam.

The state has emerged in recent years as the hub of information technology and biotechnology. In 2004 – 2005, Andhra Pradesh was at the fifth position in the list of top IT exporting states of India.

In 2007, the state’s gross domestic product stood at Rs 229,461 crore (Rs 2,294.61 billion).

Kerala: Job growth — 5.86%

In recent years, Kerala has liberalised its mixed economy, allowing greater participation by the free market and foreign direct investment.


Only a few major corporations and manufacturing plants choose to operate in Kerala. This is mitigated by remittances sent home by overseas Keralites, which contributes around 20% of state GDP.

Kerala’s nominal gross domestic product (as of 2004?2005) is an estimated Rs 894,51 crore (Rs 894.51 billion). The state’s human development index and standard of living statistics are the nation’s best.

The state’s traditional industries manufacturing coir, handlooms, and handicrafts employ about one million people. Kerala’s gross domestic product (as of 2006) is an estimated Rs 894.51 billion.

Haryana: Job growth — 5.35%

Haryana has seen a fabulous growth in recent times and the state is among the three best performing states in the country.

The state has 93 of top Fortune 100 companies’ corporate offices and production bases. It has the largest number of rural crorepatis in India.


In 2006-07 Haryana received a foreign direct investment projects of over Rs 11,000 crore (Rs 110 billion). Reliance Ventures will set up a multi-product special economic zone in Haryana at an investment of Rs 40,000 crore (Rs 400 billion).

More than a thousand medium and large industries with a capital investment of Rs 2,000 billion have been established in Gurgaon, Panchkula, Faridabad and Bahadurgarh. These include Hindustan National Glass, Maruti Udyog Limited, Escorts, Hero Honda, Alcatel, Sony, Whirlpool India, Bharti Telecom, Liberty Shoes and Hindustan Machine Tools.

In addition, there are more than 80,000 small-scale industrial units in the state. Gurgaon emerged as the best city for setting up a software or BPO centre, according to a research on Offshore Competitiveness conducted by neoIT, an offshoring consultancy.

With organisations like IBM, Hewitt Associates, Dell, Convergys, United Healthcare and NIIT setting up back offices or contact centres in Gurgaon. Establishment of Nano City, a joint venture between the Haryana State Industrial and Infrastructure Development Corporation and Nano Works Developers Private Ltd, a company promoted by Sabeer Bhatia, is expected to boost the state position in this sector.

In 2007-2008, the state’s gross domestic product stood at Rs 101,319.42 crore (Rs 1,013.19 billion). Haryana also had the minimum fiscal deficit of 0.6 per cent in financial year 2006-07.

Maharashtra: Job growth — 5.26%

Favourable economic policies in the 1970s led to Maharashtra becoming India’s leading industrial state. However, regions within Maharashtra show wide disparity in development. Mumbai, Pune and western Maharashtra are the most advanced. These areas also dominate the politics and bureaucracy of the state. This has led to resentment among backward regions like Vidarbha, Marathwada, and Konkan.


Maharashtra’s is India’s leading industrial state contributing 13% of national industrial output.

Major industries in Maharashtra include chemical and allied products, electrical and non-electrical machinery, textiles, petroleum and allied products. Other important industries include metal products, wine, jewellery, pharmaceuticals, engineering goods, machine tools, steel and iron castings and plastic wares.

Food crops include mangoes, grapes, bananas, oranges, wheat, rice, jowar, bajra, and pulses. Cash crops include groundnut, cotton, sugarcane, turmeric and tobacco.

Mumbai, the state’s capital and the business hub of India, houses the headquarters of almost all major banks, financial institutions, insurance companies and mutual funds in India. Maharashtra has recently set up software parks in Pune, Mumbai, Navi Mumbai, Aurangabad, Nagpur and Nasik.

Maharashtra’s gross state domestic product for 2004 is estimated at Rs 445,200 crore (Rs 4,452 billion) at current prices.

Courtesy :- Rediff


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