India’s Manufacturing Expansion Boosts Industrial Output and Jobs in FY25

India’s registered manufacturing sector recorded robust growth in 2024-25, with industrial output rising 7.81 per cent over the previous fiscal and total employment increasing 7.19 per cent, according to the Annual Survey of Industries (ASI) released by the government on Wednesday.

The number of manufacturing establishments also increased from 2.60 lakh in 2023-24 to 2.67 lakh in 2024-25, registering a growth of 2.64 per cent, according to data released by the Ministry of Statistics and Programme Implementation.

Tamil Nadu reported the highest number of registered manufacturing establishments at 41,221, followed by Gujarat with 33,084 and Maharashtra with 27,379.

In terms of employment, Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Haryana emerged as the top five states, together accounting for more than 56 per cent of total manufacturing employment in the country during 2024-25.

The sector’s major industrial segments also made significant contributions to economic activity. Basic metals, motor vehicles, chemicals and chemical products, pharmaceuticals, and food products together accounted for more than 45 per cent of the total manufacturing Gross Value Added (GVA) during the year.

Total emoluments paid to the workforce increased 12.08 per cent in 2024-25 compared with 2023-24, reflecting higher wage expenditure across the registered manufacturing sector.

The ASI data showed broad-based growth across the registered manufacturing sector, with key indicators such as invested capital, inputs, output, Gross Value Added, employment and wages recording an increase over the previous year.

The Annual Survey of Industries is conducted to provide insights into changes in the composition, growth and structure of India's manufacturing industries. It covers parameters including output, value addition, employment and capital formation.

The survey serves as an important input for policymaking and the compilation of National Accounts Statistics, while also meeting the information requirements of various government ministries and helping stakeholders assess developments across the manufacturing sector.