Manufacturing corporate sector GVA grows 9.28% in FY25: ASI

India’s manufacturing corporate sector recorded a 9.28 per cent growth in Gross Value Added (GVA) in 2024–25, reflecting an expansion in industrial activity, according to the Annual Survey of Industries (ASI) released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday.
Net value added per operating factory increased 6.59 per cent during the year, while GVA per person engaged rose 2.25 per cent compared with the previous year. The gross value of plant and machinery in the registered manufacturing sector also increased 7.25 per cent.The manufacturing corporate sector, which contributed more than 89 per cent of the total GVA, recorded a 3.45 per cent rise in operating factories and a 7.57 per cent increase in the number of persons engaged.
According to the survey, food products, textiles, basic metals, motor vehicles and wearing apparel together accounted for more than 41 per cent of total manufacturing employment covered by the ASI.At the state level, Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh emerged as the top five contributors to manufacturing GVA, collectively accounting for more than 54 per cent of the total.
The findings also highlighted the concentration of capital investment and production among larger factories. Units with plant and machinery investment of up to Rs 5 crore accounted for 78.69 per cent of operating factories and employed 34.32 per cent of the workforce. However, their share in fixed capital stood at 10.55 per cent, while they contributed 19.24 per cent of output and 17.61 per cent of net value added.
On the other hand, factories with plant and machinery investment of Rs 10 crore and above represented 15.84 per cent of operating units but held 87.42 per cent of fixed capital. These factories accounted for 59.66 per cent of employment, 76.82 per cent of output and 78.07 per cent of net value added.A similar concentration was evident when factories were classified by annual output. Units producing more than Rs 10 crore annually accounted for 47.63 per cent of operating factories but contributed 98.10 per cent of total output and 97.87 per cent of net value added. They also represented 95.55 per cent of fixed capital and 88.78 per cent of employment.Besides, factories with annual output of up to Rs 1 crore constituted 18.34 per cent of operating units, employed just 2.17 per cent of the workforce and contributed 0.08 per cent of total output.
The ASI provides insights into the composition, growth and structural changes in India's industrial sector through indicators such as output, value addition, employment, capital investment and remuneration. Its findings also serve as an important input for estimating national and state income.

(Business Correspondent)