Manufacturing sector expands 7.19% in FY25; J&K not among top States

Ziraat Times News Desk

Srinagar/New Delhi, Oct 1: India’s registered manufacturing sector recorded broad-based growth during 2024-25, with the number of establishments, employment, fixed capital, output and Gross Value Added (GVA) all rising over the previous year, according to the Annual Survey of Industries (ASI) 2024-25 released by the Ministry of Statistics and Programme Implementation (MoSPI).

The survey, released on September 30, shows that the number of registered manufacturing establishments increased from 2.60 lakh in 2023-24 to 2.67 lakh in 2024-25, a rise of 2.64%.

GVA rose 9.59%, from ₹24.58 lakh crore to ₹26.94 lakh crore, while fixed capital increased by 10.54%. Invested capital, comprising fixed and physical working capital, expanded by 11.10%.

Employment also recorded a significant increase. The estimated number of persons engaged in the registered manufacturing sector rose from 1.96 crore in 2023-24 to 2.10 crore in 2024-25, representing growth of 7.19%.

Total emoluments paid to workers increased by 12.08%, while industrial output rose 7.81%.

Maharashtra leads GVA

Maharashtra recorded the largest share of India’s manufacturing GVA in 2024-25 at 15.92%, followed by Gujarat at 14.10%, Tamil Nadu at 10.90%, Karnataka at 7.31% and Uttar Pradesh at 6.64%.

Together, the five States accounted for more than 54% of India’s manufacturing GVA and 53.30% of the country’s registered manufacturing establishments.

Tamil Nadu had the largest number of establishments at 41,221, followed by Gujarat with 33,084 and Maharashtra with 27,379.

Five States account for 56% of manufacturing employment

Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Haryana emerged as the five leading States in terms of manufacturing employment.

Their combined share was about 56% of total manufacturing employment in 2024-25.

Tamil Nadu accounted for 14.99% of persons engaged, Maharashtra 13.08%, Gujarat 12.99%, Uttar Pradesh 8.72% and Haryana 6.44%.

The five States also accounted for a substantial share of total manufacturing-sector emoluments.

J&K absent from the top five

Jammu & Kashmir does not figure among the top five States identified by MoSPI for either manufacturing GVA or total manufacturing employment in ASI 2024-25.

The top five by GVA were Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh, while the top five by employment were Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Haryana.

J&K is, however, covered by the ASI. For context, in the previous ASI 2023-24 results, J&K accounted for 0.32% of India’s manufacturing GVA, with 2,097 operating factories and 98,813 persons engaged.

Basic metals, automobiles among major contributors

Five industries — basic metals, motor vehicles, chemicals and chemical products, pharmaceutical products and food products — together contributed more than 45% of India’s total manufacturing GVA during 2024-25.

The survey also reported a 9.68% increase in net income and a 7.73% increase in net profit over the previous year.

Manufacturing investment rises

Fixed capital increased from ₹46.24 lakh crore in 2023-24 to ₹51.12 lakh crore in 2024-25. Invested capital rose from ₹68.01 lakh crore to ₹75.56 lakh crore.

The number of factories increased from 2,60,061 to 2,66,931, while factories in operation rose from 2,12,990 to 2,18,543.

The number of workers increased from about 1.55 crore to 1.67 crore, while total persons engaged crossed 2.09 crore.

What the ASI measures

The Annual Survey of Industries is a principal source of statistics on India’s registered organised manufacturing sector. It provides information on establishments, employment, capital, input, output and value added and is used in policymaking and the compilation of National Accounts Statistics. 

The survey broadly covers registered factories, certain bidi and cigar manufacturing establishments, specified electricity undertakings and certain establishments with 100 or more employees listed in State Business Registers.

MoSPI cautions that the results are estimates from a sample survey and should therefore be used with appropriate statistical caution.