India's manufacturing GVA grows 9.28% in FY2024-25, MoSPI data shows
Synopsis
MoSPI's Annual Survey of Industries shows India's registered manufacturing sector grew GVA by 9.28% in FY2024-25, with factory numbers up 3.45% and workforce up 7.57%. Five states — Maharashtra, Gujarat, Tamil Nadu, Karnataka, and UP — account for over half the country's manufacturing GVA, while large factories with ₹10 crore-plus investment generate nearly 79% of net value added despite being fewer than 16% of units.
Key Takeaways
India's registered manufacturing GVA grew 9.28% in FY2024-25 , according to MoSPI's Annual Survey of Industries .
Gross value of plant and machinery rose 7.25% year-on-year.
Operational factories increased by 3.45% ; total persons engaged rose 7.57% .
Food products, textiles, basic metals, motor vehicles , and wearing apparel together account for over 41% of manufacturing employment.
Maharashtra, Gujarat, Tamil Nadu, Karnataka , and Uttar Pradesh collectively hold more than 54% of total manufacturing GVA.
Factories with investment of ₹10 crore and above represent 15.84% of units but generate 78.07% of net value added.
India's registered manufacturing sector posted 9.28% Gross Value Added (GVA) growth in FY2024-25 over the preceding year, according to the Annual Survey of Industries (ASI) results released by the Ministry of Statistics and Programme Implementation (MoSPI) on 4 November 2026. The plant and machinery gross value also expanded by 7.25%, signalling broad-based capital deepening across the sector.
The data reflects upward movement across multiple economic metrics — capital investment, production output, workforce size, and worker compensation — marking one of the stronger annual readings in recent years for organised manufacturing.
Key Growth Figures
The manufacturing corporate sector, which accounts for more than 89% of total manufacturing GVA, led the expansion. The number of factories in operation rose by 3.45%, while total persons engaged climbed 7.57% year-on-year. GVA within this segment grew 9.28%, underlining the outsized role large-scale industry plays in driving sectoral output.
Notably, the top five industries by employment — food products, textiles, basic metals, motor vehicles, and wearing apparel — collectively accounted for more than 41% of total manufacturing employment in 2024-25, affirming that labour-intensive sectors remain the backbone of India's factory workforce.
Top States by Manufacturing GVA
Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh emerged as the five leading states in manufacturing GVA, together accounting for more than 54% of the country's total manufacturing GVA in 2024-25. This geographic concentration underscores how industrial output remains anchored to a handful of states with established infrastructure, port access, and skilled labour pools.
Small vs Large Factory Divide
The ASI data reveals a sharp structural divide between small and large factories. Factories with plant and machinery investment of up to ₹5 crore made up 78.69% of all operational units but held only 10.55% of fixed capital. Despite their numerical dominance, they contributed 19.24% to total output and 17.61% to net value added, while employing 34.32% of the workforce.
In contrast, factories with gross investment of ₹10 crore and above represented just 15.84% of operational units, yet commanded 87.42% of fixed capital, employed 59.66% of persons engaged, generated 76.82% of gross output, and contributed 78.07% of total net value added. The data reinforces the productivity gulf between micro-scale and large-scale manufacturing in India.
About the Annual Survey of Industries
The ASI is MoSPI's flagship annual data collection exercise for the registered manufacturing sector, designed to track changes in output, value added, employment, and capital formation at both national and state levels. The 2024-25 ASI release includes Volume I, Summary Results of the Factory Sector, and unit-level data, all now publicly disseminated. The findings feed directly into India's National Accounts Statistics, making them a key input for GDP estimation and policy benchmarking.
With manufacturing employment rising and GVA expanding faster than the broader economy, the data will likely inform upcoming policy decisions on industrial incentives and labour-market skilling programmes.
Point of View
But the structural imbalance buried in the data deserves equal attention. Small factories — nearly 79% of all units — contribute barely 18% of net value added, exposing a persistent productivity gap that headline GVA growth conceals. India's manufacturing employment story also rests heavily on five labour-intensive industries in food, textiles, and apparel — sectors that are inherently vulnerable to global demand shocks and automation. The five-state concentration of GVA, meanwhile, suggests that industrial policy gains are not diffusing to lagging states. Policymakers aiming for a genuinely broad manufacturing base will need to address these structural asymmetries, not just celebrate the top-line growth print.
NationPress
4 Nov 2026
Frequently Asked Questions
What does the Annual Survey of Industries 2024-25 show about India's manufacturing sector?
The ASI 2024-25 shows India's registered manufacturing sector recorded 9.28% GVA growth and a 7.25% rise in the gross value of plant and machinery in FY2024-25 over the previous year. Factory numbers rose 3.45% and total employment in the sector grew 7.57%.
Which states lead India's manufacturing GVA in 2024-25?
Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh are the top five states, together accounting for more than 54% of India's total manufacturing GVA in 2024-25. Their dominance reflects established industrial infrastructure, port connectivity, and skilled labour availability.
Which industries employ the most workers in India's manufacturing sector?
Food products, textiles, basic metals, motor vehicles, and wearing apparel collectively account for more than 41% of total manufacturing employment in 2024-25. These five labour-intensive industries form the employment backbone of India's factory sector.
How do small and large factories compare in India's manufacturing output?
Factories with plant and machinery investment up to ₹5 crore make up nearly 79% of units but contribute only about 18% of net value added. In contrast, factories with investment of ₹10 crore and above — just 15.84% of units — generate 78.07% of net value added and employ 59.66% of the workforce.
What is the Annual Survey of Industries and why does it matter?
The Annual Survey of Industries is MoSPI's primary data collection exercise for India's registered manufacturing sector, tracking output, employment, capital formation, and value added at national and state levels. Its results feed directly into National Accounts Statistics and serve as a key input for GDP estimation and industrial policy decisions.
