India’s Manufacturing Sector Records 7.81% Output Growth in FY25, Employment Rises 7.19%

The number of registered manufacturing establishments increased during the year, rising from 2.60 lakh in FY24 to 2.67 lakh in FY25. This represented a growth of 2.64 per cent, according to Annual Survey of Industries (ASI) data released by the government on Wednesday.

Tamil Nadu had the highest number of manufacturing establishments at 41,221, followed by Gujarat with 33,084 and Maharashtra with 27,379, according to data from the Ministry of Statistics and Programme Implementation.

Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Haryana emerged as the five largest states in terms of manufacturing employment. Together, they accounted for more than 56 per cent of total employment in the country’s registered manufacturing sector during 2024-25.

The sector’s output growth was supported by several major industries. Basic metals, motor vehicles, chemicals and chemical products, pharmaceuticals, and food products collectively contributed more than 45 per cent of India’s total manufacturing Gross Value Added (GVA) during FY25.

Worker compensation also recorded significant growth, with total emoluments increasing by 12.08 per cent compared with the previous financial year.

The ASI data showed that growth during FY25 was broad-based, with several key indicators, including invested capital, inputs, output, GVA, employment and wages, recording increases over FY24.

The Annual Survey of Industries is designed to provide detailed information on changes in the composition, growth and structure of India’s manufacturing sector. It covers parameters including output, value addition, employment, capital formation and other economic indicators.

The survey data is used by the government for policymaking and contributes to the compilation of National Accounts Statistics. It also provides information to various ministries and other stakeholders for economic planning and decision-making.