Delhi’s factory count rises but jobs lag, signalling shift in industrial growth

Employment in Delhi’s industrial sector has grown only marginally in recent years, even as the number of factories has increased, indicating a slow and uneven recovery in the capital’s manufacturing base after the Covid-19 pandemic.

Latest government data shows that jobs in registered factories rose from just over 4 lakh in 2020 to around 4.1 lakh in 2024. In the same period, the number of industrial units increased from 8,643 to 8,869. Officials say the mismatch suggests that newer units are not generating jobs at the same pace, possibly due to higher capital intensity or limited expansion in scale.

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A sector-wise analysis indicates that employment gains have been concentrated in a handful of segments rather than being broad-based. Jobs in rubber and plastics units increased from 16,942 to 19,111 between 2020 and 2024, while repair services saw employment rise from 12,691 to 15,503, reflecting demand-driven growth in consumption-linked and maintenance activities.

The beverages and tobacco segment also recorded a notable jump in employment—from 1,913 to 2,680—pointing to relatively higher labour absorption despite its smaller industrial footprint.

In contrast, traditional labour-intensive sectors have seen little movement. Employment in textiles, which account for the largest share of factories in the city at around 1,500 units, remained largely unchanged at just over 1 lakh workers, suggesting stagnation in fresh hiring.

Other core manufacturing industries have also shown limited dynamism. The chemicals sector remained static at 172 factories with employment steady at around 7,019, while metal products and machinery units continued to employ roughly 30,000 workers over the period. Paper and printing registered only a marginal rise in jobs, from 22,940 to 23,915.

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Meanwhile, data points to a gradual structural shift within the industrial ecosystem. The number of wholesale trade-linked units surged from just two in 2020 to 41 in 2024, with employment rising from 105 to 1,283. Officials say this trend indicates a tilt away from traditional manufacturing towards logistics and supply chain-oriented activities.

(With inputs from TOI)