India's registered manufacturing sector demonstrated robust expansion in the financial year 2024-25, with its workforce crossing the 21 million mark and the number of operating factories increasing by 2.6%. The latest data from the Annual Survey of Industries (ASI) 2024-25, released recently, highlights a continued positive trajectory for industrial activity across the nation.
Significant Growth in Factories and Employment
The ASI 2024-25 report indicates that India was home to 267,000 registered manufacturing units, marking a 2.64% rise from the 260,000 factories recorded in 2023-24. This growth rate aligns with previous years, which saw a 2.65% increase in FY24 and 1.33% in FY23. Specifically, the number of factories actively in operation grew by 2.61% in FY25, reaching 218,000 compared to 212,000 in FY23.
Employment figures in the registered manufacturing sector also saw a substantial boost. The estimated number of persons engaged surged by 7.19% to 21 million in 2024-25, up from 19 million in the preceding year. Concurrently, total emoluments paid to this expanding workforce increased by 12.08%, reaching Rs 8.03 lakh crore in 2024-25, compared to 2023-24 figures.
Strong Production and Value Addition
On the production front, the sector recorded a 7.81% growth in output, supported by a 7.47% increase in inputs. This led to a Gross Value Added (GVA) growth of 9.59%, bringing the total GVA to Rs 26.94 lakh crore in ASI 2024-25. While impressive, this GVA growth was slightly slower than the 11.89% observed in ASI 2023-24. Furthermore, net profit for the sector also saw a healthy increase of 7.73%, reaching Rs 11.55 lakh crore in 2024-25.
"As a general view, these movements of indicators suggest towards continued expansion in industrial activity, supported by higher investment, employment growth and value addition," stated an official release regarding the ASI findings.
Key States Leading Manufacturing Growth
The survey also shed light on regional contributions to India's manufacturing landscape. Tamil Nadu maintained its lead with the highest number of manufacturing establishments, reporting 41,221 units. Gujarat followed with 33,084 factories, and Maharashtra secured the third position with 27,379. These three states collectively represent a significant portion of the country's industrial base.
In terms of individual share in the all-India GVA, Maharashtra recorded the highest contribution in 2024-25, followed by Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh. These top five states collectively accounted for over 54% of the nation's total manufacturing GVA, underscoring their critical role in India's industrial economy.