India’s Registered Manufacturing Adds 1.4 Million Jobs, GVA Surges 9.6 % in 2024‑25
NEWZA Editorial Team•
⚡ Key Financial Takeaways
Employment in registered manufacturing exceeded 20 million for the first time, with a 7.2 % rise in 2024‑25.
Gross value added climbed 9.6 % to ₹26.94 lakh crore, while industrial output grew 7.8 %.
Fixed capital investment increased 10.5 % to ₹51.12 lakh crore, indicating strong capital formation.
Tamil Nadu, Maharashtra and Gujarat together account for more than half of manufacturing employment and GVA.
Basic metals, motor vehicles, chemicals, pharmaceuticals and food products together contributed over 45 % of total GVA.
💡 Why It Matters
The manufacturing sector’s growth in employment, value added and capital investment directly supports India’s goal of creating jobs and boosting economic output. A larger, more productive manufacturing base can absorb the country’s vast labour supply, raise wages, and enhance competitiveness in global markets.
Employment boom in India’s formal manufacturing The latest Annual Survey of Industries released on 30 September shows that the registered manufacturing sector added **more than 1.4 million jobs** in 2024‑25, pushing total employment past the **20‑million mark** for the first time. The workforce grew by **7.19 %** from the previous year, underscoring the sector’s role as a major job creator.
Strong growth in value added and output Gross value added (GVA) rose **9.6 %** to **₹26.94 lakh crore**, up from ₹24.58 lakh crore in 2023‑24. Industrial output followed a similar trend, increasing **7.8 %** to ₹165.24 lakh crore. These figures indicate that the sector is not only expanding in size but also becoming more productive.
Capital formation and factory expansion Fixed capital investment grew **10.54 %** to ₹51.12 lakh crore, reflecting heightened investment in machinery and infrastructure. The number of factories covered by the survey increased **2.64 %** to 267,000, signalling a steady rise in manufacturing capacity.
Wages and compensation rise faster than employment Total emoluments climbed **12.1 %**, while wages paid to workers rose **13 %**. The faster growth in compensation relative to headcount suggests improving earnings for manufacturing labour.
State‑level contributions Tamil Nadu remains the largest employer in registered manufacturing, accounting for **15 %** of jobs, followed by Maharashtra (**13.1 %**) and Gujarat (**13 %**). Uttar Pradesh’s share rose to **8.7 %** from 8.3 %, and Haryana contributed **6.4 %**.
In terms of GVA, Maharashtra leads with **15.9 %** of the national total, followed by Gujarat (**14.1 %**) and Tamil Nadu (**10.9 %**). Karnataka and Uttar Pradesh added **7.3 %** and **6.6 %** respectively. Together, these five states contributed more than **54 %** of India’s registered manufacturing GVA.
Industry‑level highlights The five largest industry groups—basic metals, motor vehicles, chemicals and chemical products, pharmaceuticals, and food products—accounted for **over 45 %** of total manufacturing GVA in 2024‑25. These sectors continue to drive the sector’s growth trajectory.
What this means for the economy The manufacturing sector’s expanding employment base and rising value added reinforce its importance in India’s growth strategy. Strong capital formation and higher wages point to a healthier, more productive industrial base that can absorb labour and support broader economic development.
What to watch next * The next Annual Survey of Industries will provide a more detailed breakdown of sectoral performance and regional dynamics. * Policy announcements on manufacturing incentives, such as the Make in India initiative, could further influence investment and employment trends. * Monitoring the performance of the top five states and key industry groups will help gauge the sector’s resilience to global supply‑chain disruptions.
Sources - Government of India, Annual Survey of Industries (data released 30 September 2024)
India’s formal manufacturing sector, as measured by the Annual Survey of Industries, represents the registered part of the industry. It excludes informal and unregistered units, which are significant but not captured in these statistics. The data provide a benchmark for policy makers and investors to assess the health of the sector.
👁️ What To Watch Next
Upcoming releases of the Annual Survey of Industries will refine these figures and offer deeper insights into sectoral performance. Additionally, any new manufacturing incentives or reforms announced by the government could accelerate growth and employment in the sector.
