India’s Manufacturing GVA Grows 9.59% as Employment Crosses 2 Crore

India’s registered manufacturing sector recorded broad-based growth in FY2024-25, with Gross Value Added rising 9.59%, industrial output increasing 7.81% and total employment crossing 2 crore, according to the latest Annual Survey of Industries released by the Ministry of Statistics and Programme Implementation.

The survey shows that the number of registered manufacturing establishments increased to 2.67 lakh, while fixed capital, invested capital, wages and net profit all expanded over the previous year. The results point to a manufacturing sector that is adding capacity, creating jobs and increasing value addition across several major industries.

Manufacturing GVA Rises to ₹26.94 Lakh Crore

Gross Value Added in the registered manufacturing sector increased from about ₹24.58 lakh crore in FY2023-24 to ₹26.94 lakh crore in FY2024-25, representing growth of 9.59%.

GVA is an important measure because it captures the value created by manufacturing establishments after accounting for the cost of inputs used in production. The latest increase therefore indicates that registered manufacturing generated significantly more economic value during the year.

Industrial Output Grows 7.81%

Industrial output rose from around ₹153.27 lakh crore in FY2023-24 to approximately ₹165.24 lakh crore in FY2024-25, marking growth of 7.81%.

The increase was accompanied by higher investment, employment and profitability, indicating that the expansion was not limited to production alone. The simultaneous rise across multiple indicators points to broader strengthening of the registered manufacturing base.

Employment Crosses 2.10 Crore

Employment emerged as one of the strongest areas of growth in the latest survey.

The estimated number of persons engaged in registered manufacturing increased from about 1.96 crore in FY2023-24 to nearly 2.10 crore in FY2024-25. This represents growth of 7.19% and an addition of more than 14 lakh people during the year.

The number of workers also increased from approximately 1.55 crore to 1.67 crore, showing that industrial expansion translated into substantial employment generation.

Employee Earnings Rise 12.08%

Total emoluments paid to workers and employees increased by 12.08% during FY2024-25.

This growth outpaced the increase in total employment, indicating that aggregate compensation rose strongly across the registered manufacturing sector.

Higher employment combined with rising emoluments broadens the impact of manufacturing growth because the benefits extend beyond production and profits into household income and workforce participation.

Fixed Capital Expands More Than 10%

The survey also recorded a significant rise in capital formation.

Fixed capital increased by 10.54%, from approximately ₹46.24 lakh crore in FY2023-24 to ₹51.12 lakh crore in FY2024-25.

Invested capital, which includes fixed capital and physical working capital, rose by 11.10% to about ₹75.56 lakh crore.

The increase reflects continued investment in factories, machinery, equipment and other productive assets, strengthening the capacity available for future industrial growth.

Net Profit Continues to Increase

The financial performance of the registered manufacturing sector also improved during FY2024-25.

Net income increased by 9.68%, while net profit rose by 7.73%.

Net profit increased from around ₹10.73 lakh crore in FY2023-24 to approximately ₹11.56 lakh crore in FY2024-25.

The combination of higher output, value addition and profitability indicates that the sector continued to expand while maintaining positive financial performance.

Number of Registered Establishments Reaches 2.67 Lakh

The total number of establishments covered by the Annual Survey of Industries increased from approximately 2.60 lakh in FY2023-24 to 2.67 lakh in FY2024-25.

This represents growth of 2.64%.

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

The increase in the number of establishments provides another indicator of the continuing expansion of organised manufacturing activity across the country.

Maharashtra Leads Manufacturing GVA

Maharashtra remained the largest contributor to registered manufacturing GVA in FY2024-25.

The State accounted for 15.92% of total manufacturing GVA, followed by Gujarat with 14.10% and Tamil Nadu with 10.90%.

Karnataka and Uttar Pradesh completed the top five.

Together, these five States contributed more than 54% of India’s registered manufacturing GVA during the year, underlining the continued importance of major industrial clusters to national manufacturing output.

Tamil Nadu Leads Manufacturing Employment

Tamil Nadu continued to lead the country in registered manufacturing employment.

The State accounted for 14.99% of total persons engaged in manufacturing during FY2024-25.

Maharashtra followed with 13.08%, while Gujarat accounted for 12.99%.

Uttar Pradesh and Haryana were the other major contributors.

Together, these five States represented about 56% of total registered manufacturing employment, showing the concentration of industrial jobs in States with large and diversified manufacturing ecosystems.

Five Industries Generate More Than 45% of Manufacturing GVA

Basic metals, motor vehicles, chemicals and chemical products, pharmaceutical products and food products together contributed more than 45% of the country’s total registered manufacturing GVA during FY2024-25.

The concentration of value addition in these sectors highlights the importance of heavy industry, automobiles, chemicals, pharmaceuticals and food processing to India’s manufacturing economy.

At the same time, the wider survey recorded growth across several major industrial indicators, showing that the expansion was not confined to only a few sectors.

Manufacturing Growth Broadens Across Key Indicators

The latest Annual Survey of Industries shows simultaneous growth in output, value addition, investment, employment, compensation and profitability.

This combination is important because manufacturing growth is strongest when higher production is accompanied by job creation and capital formation.

The addition of more than 14 lakh employees, together with double-digit growth in fixed and invested capital, indicates that registered manufacturing continued to expand both its productive capacity and workforce during FY2024-25.

Registered Manufacturing Strengthens Its Economic Role

India’s manufacturing sector remains central to the country’s efforts to expand industrial capacity, strengthen domestic supply chains and create large-scale employment.

The FY2024-25 survey shows that registered manufacturing continued to build momentum across several important indicators, with GVA reaching about ₹26.94 lakh crore and employment rising to nearly 2.10 crore.

The expansion in investment, output, employment and profitability provides a stronger base for future industrial growth and reinforces manufacturing’s role in India’s wider economic transformation.

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References

Press Information Bureau, Ministry of Statistics and Programme Implementation — “Release of the Annual Survey of Industries (2024-25) results,” September 30, 2026.

https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2316981

Ministry of Statistics and Programme Implementation — Annual Survey of Industries 2024-25 Factsheet.

https://www.mospi.gov.in

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