Manufacturing adds 1.4 million jobs in FY25
New Delhi: India’s registered manufacturing sector added more than 1.4 million people to its workforce in FY25, taking total employment past the 20 million mark, even as fixed capital rose 10.54%, according to the latest annual survey of industries (ASI) released by the ministry of statistics and programme implementation (MoSPI) on Wednesday.
The number of people engaged in registered manufacturing increased 7.19% year-on-year to 21 million in 2024-25, while total emoluments rose 12.08%. Gross value added (GVA) increased 9.59% and industrial output grew 7.81%.
The data, however, come with a time lag. The reference period for the survey was April 2024-March 2025, while fieldwork was carried out between October 2025 and June 2026.
The survey’s findings are significant, as the ASI provides insights into the growth and structure of the manufacturing sector, covering key indicators such as output, value added, employment, and capital formation. Its findings support policymaking and the compilation of national accounts, while also providing data on manufacturing at the state and major industry levels.
Industrial output grew 7.81%, while invested capital, which includes fixed capital and physical working capital, increased 11.10% in FY25.
Picture of performance
The data provide a picture of the performance of the registered manufacturing sector during FY25, when the number of factories, capital deployed, output and employment all increased.
The number of registered manufacturing establishments rose 2.64% to 267,000 in FY25 from 260,000 in FY24. Tamil Nadu had the highest number of establishments at 41,221, followed by Gujarat at 33,084 and Maharashtra at 27,379.
Manufacturing GVA increased to ₹26.94 trillion in FY25 from ₹24.58 trillion in the previous year. Maharashtra remained the largest contributor, accounting for 15.92% of manufacturing GVA, followed by Gujarat at 14.10% and Tamil Nadu at 10.90%.
Karnataka and Uttar Pradesh accounted for 7.31% and 6.64%, respectively. The five states together contributed more than 54% of the sector’s total GVA.
Fixed capital—long-term funds invested in physical assets—increased to ₹51.12 trillion in FY25 from ₹46.24 trillion a year earlier, while invested capital rose to ₹75.56 trillion from ₹68.01 trillion. Output increased to ₹165.24 trillion from ₹153.27 trillion.
Higher profitability
The increase in capital formation was accompanied by higher profitability. Net income rose 9.68% and net profit 7.73% during FY25, according to the survey.
In terms of employment, Tamil Nadu accounted for the largest share of manufacturing employment at 14.99%, followed by Maharashtra at 13.08%, Gujarat at 12.99%, Uttar Pradesh at 8.72% and Haryana at 6.44%. Together, the five states accounted for about 56% of total manufacturing employment in FY25.
At the industry level, food products employed the largest number of people at 2.36 million, followed by textiles at 1.75 million.
The concentration of employment across these industries also reflects the importance of food processing, textiles, metals and automobiles within India’s registered manufacturing base.
Five industries—basic metals, motor vehicles, chemicals and chemical products, pharmaceutical products and food products—together accounted for more than 45% of manufacturing GVA in FY25.
The ASI covers factories registered under the relevant provisions of the Factories Act, certain bidi and cigar establishments, specified electricity undertakings and units with 100 or more employees included in state business registers. The survey follows an establishment-based approach and uses primarily record-based information collected through a dedicated web portal.
