The organized sector in India consists of 293.77 thousand industrial establishments. Out of these, 172.34 thousand are public sector enterprises while 121.43 thousand are in private sector. Since 2004, an increase of 1.4% has been recorded in the number of establishments in the organized sector. As on the 31st March, 2005 the total employment in the organized sector was estimated to be 264.58 lakh while in 2004, it was 264.43 lakh. This means there has been an increase of 0.1% in employment. The public sector employs about 180.7 lakh persons while the private sector employs 84.52 lakh persons. The negative growth of employment was recorded in public sector while private sector showed an increasing trend, that is, the employment in public sector decreased by 1 percent while private sector increased by 2.5 percent.

The branch wise analysis of the public sector data reveals that Central Govt. shows maximum negative growth in employment followed by Quasi Govt., Local Bodies and State Govt. The same trend continued in 2005 also, in which the Central Govt. recorded a negative growth of 2.9% followed by Quasi Govt. with a negative growth of 2.2%. The Local Bodies and State Govt. were also subjected to a negative growth of 0.4% and 0.3% respectively.

State wise analysis reflects that only Punjab and Kerala recorded a decrease of more than 3 percent. Decrease in employment above 1 percent was observed in Madhya Pradesh Uttar Pradesh, Chandigarh and Andhra Pradesh. An increase of more than 3 percent in employment was observed in Goa, Himachal Pradesh and Gujarat and 1 percent or more in Pondicherry, Karnataka, West Bengal, Uttaranchal, Assam and Nagaland.

While analyzing the figures zone wise, highest decrease of 1.6 percent was seen in Central Zone followed by 1 percent in Northern Zone and 0.6 percent in Southern Zone whereas the highest increase was 2 percent in Western Zone followed by 1.1 percent in North-Eastern Zone and 0.9 percent in Eastern Zone in employment.