India manufacturing output up 7.81% in FY25, jobs rise 7.19%: ASI data
Synopsis
India's registered manufacturing sector delivered one of its stronger annual performances in FY25 — output up 7.81%, jobs up 7.19%, and wages surging 12.08% — but the headline numbers mask a geographic concentration story: just five states account for more than half of all manufacturing employment, and five industries drive nearly half of all GVA.
Key Takeaways
India's registered manufacturing sector recorded 7.81 per cent industrial output growth in FY2024-25 over the previous year, per ASI data.
Total manufacturing employment grew 7.19 per cent in the same period.
The number of registered establishments rose from 2.60 lakh to 2.67 lakh — a 2.64 per cent increase.
Tamil Nadu led all states with 41,221 establishments; Gujarat and Maharashtra followed.
Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh , and Haryana together held more than 56 per cent of total manufacturing employment.
Total emoluments paid to workers rose by 12.08 per cent in FY25 compared to FY24 .
India's registered manufacturing sector posted 7.81 per cent growth in industrial output during financial year 2024-25 compared to the previous fiscal, while total employment in the sector expanded by 7.19 per cent over the same period, according to the Annual Survey of Industries (ASI) data released by the government on Wednesday, 30 September. The figures, published by the Ministry of Statistics and Programme Implementation, point to broad-based momentum across the country's factory floor.
Establishment Growth and State-Level Leaders
The total number of registered manufacturing establishments rose from 2.60 lakh in FY24 to 2.67 lakh in FY25, a growth of 2.64 per cent. Tamil Nadu recorded the highest number of establishments at 41,221, followed by Gujarat at 33,084 and Maharashtra at 27,379. The data underscores the continued dominance of southern and western industrial clusters in India's manufacturing geography.
Employment Concentration in Top 5 States
Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, and Haryana together accounted for more than 56 per cent of total manufacturing employment in the country during 2024-25. This geographic concentration of jobs raises questions about whether growth is sufficiently distributed across states with large labour surpluses, such as Bihar and Odisha, which did not feature in the top five.
Sectors Driving Gross Value Added
Five industries — basic metals, motor vehicles, chemical and chemical products, pharmaceutical products, and food products — collectively contributed more than 45 per cent of total manufacturing Gross Value Added (GVA) in 2024-25. The prominence of pharmaceuticals and motor vehicles reflects the ongoing impact of Production-Linked Incentive (PLI) schemes, which have channelled investment into these high-value segments over the past several years.
Wages and Broader Indicators
Total emoluments paid to the manufacturing workforce climbed by 12.08 per cent in 2024-25 compared to 2023-24, outpacing both output and employment growth — a signal that wage quality, not just headcount, improved during the year. According to the ASI data, virtually all major economic indicators — including invested capital, input, output, GVA, employment, and wages — recorded year-on-year increases, suggesting the upturn was not confined to any single metric.
Why the ASI Data Matters
The Annual Survey of Industries is the government's primary instrument for tracking the structural dynamics of registered manufacturing. Its findings feed directly into National Accounts Statistics, inform policymaking across multiple ministries, and serve as a reference point for industry bodies and investors assessing India's industrial trajectory. This comes amid sustained policy attention on manufacturing's share of GDP, which has remained a subject of debate among economists and planners. The next ASI cycle will be closely watched to see whether the current growth trajectory holds as global demand conditions remain uncertain.
Point of View
Employment, and wages all moved in the right direction simultaneously, which is rarer than the headline suggests. But the geographic story is a structural concern: five states absorbing over 56 per cent of manufacturing employment means the growth dividend is bypassing large labour-surplus states. Equally, five industries generating nearly half of manufacturing GVA points to a concentration risk — any sectoral shock in basic metals or motor vehicles would disproportionately dent the aggregate. The 12.08 per cent wage growth is the most underreported figure here; if it reflects genuine productivity gains rather than a base effect, it would be a meaningful shift in the quality of manufacturing jobs India is creating.
NationPress
30 Sept 2026
Frequently Asked Questions
What does the Annual Survey of Industries FY25 data show about India's manufacturing sector?
The ASI data for FY2024-25 shows that India's registered manufacturing sector grew industrial output by 7.81 per cent over the previous year, while employment rose 7.19 per cent and total worker emoluments increased 12.08 per cent. The survey covers all major economic indicators including invested capital, input, output, GVA, and wages.
Which states have the most manufacturing establishments in India in FY25?
Tamil Nadu recorded the highest number of manufacturing establishments at 41,221, followed by Gujarat at 33,084 and Maharashtra at 27,379, according to the ASI data released on 30 September. These three states, along with Uttar Pradesh and Haryana, together account for more than 56 per cent of total manufacturing employment.
Which industries contributed most to manufacturing GVA in FY25?
Basic metals, motor vehicles, chemical and chemical products, pharmaceutical products, and food products together contributed more than 45 per cent of India's total manufacturing Gross Value Added in 2024-25. These five sectors have consistently anchored India's industrial output over recent years.
How much did manufacturing wages grow in FY25?
Total emoluments paid to the manufacturing workforce increased by 12.08 per cent in FY2024-25 compared to FY2023-24, outpacing both output growth and employment growth for the same period. This suggests an improvement in the quality of manufacturing jobs, not just their quantity.
What is the Annual Survey of Industries and why does it matter?
The Annual Survey of Industries is a government survey conducted to track the composition, growth, and structure of India's registered manufacturing sector across metrics such as output, value added, employment, and capital formation. Its data feeds into National Accounts Statistics and informs policymaking across multiple central ministries.
