Saturday, Nov 01, 2014
Posted: August 24, 2014 12:06 am

What is a factory?

Under the Factories’ Act, 1948, and the Bidi and Cigar Workers (Conditions of Employment) Act, 1966, units that use power for manufacturing must employ 10 workers or more in a year to be called a factory whereas units that do not use power must employ at least 20 workers in the last 12 months to be defined as a factory. The proposed amendment will double the minimum number of workers in a factory to 20 for units with power and 40 for non-power units.


Number of factories operating in the country in 2011-12, the latest year for which data is available. It marks a mere 2 per cent rise from the previous survey.

 26,654 units

Tamil Nadu had the highest number of factories in the country in 2011-12.

15 units

Andaman & Nicobar Islands with just 15 units and Sikkim with a mere 54 units had the lowest number of factories in the country.

# Factories in Tamil Nadu employed the most workers at 19.4 lakh, followed by those in Maharashtra at 18.8 lakh, Gujarat at 13.8 lakh and Andhra Pradesh at 13.62 lakh.

# Factories in Maharashtra registered the highest gross value addition at Rs 1.79 lakh crore while those in the Andaman and Nicobar Islands, Manipur, Nagaland and Tripura had nil gross value addition.

Source: Annual Survey of Industries 2011-12

Compiled by Surabhi



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