Manufacturing Powerhouses: 5 States Drive Over 54% of India's GVA
New ASI data reveals Maharashtra, Gujarat, and 3 other states dominate India's manufacturing GVA, with corporate sector growth hitting 9.28%.
India's industrial landscape is witnessing a significant concentration of wealth and production, with just five states now powering more than half of the nation's manufacturing strength. According to the latest Annual Survey of Industries (ASI) results for FY2024-25, the manufacturing corporate sector has seen a robust Gross Value Added (GVA) growth of 9.28 per cent compared to the previous year.
The Big Five: Leading the Industrial Charge
The data, released via a factsheet by the Ministry of Statistics & Programme Implementation (MoSPI), highlights a stark dominance by a handful of states. Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh have emerged as the top contributors, collectively accounting for over 54 per cent of the country's total manufacturing GVA for the period between April 2024 and March 2025.
The corporate segment of the manufacturing sector remains the primary engine of this growth, holding a commanding share of more than 89 per cent of the total GVA.
Growth Beyond the Numbers
It isn't just the value of production that is rising; the physical and human infrastructure of Indian industry is also expanding. The ASI report notes several key upward trends:
- Operational Growth: There was a 3.45 per cent increase in the number of operational factories.
- Job Creation: The total number of persons engaged in the sector rose by 7.57 per cent.
- Infrastructure Investment: The Gross Value of Plant & Machinery recorded a notable growth of 7.25 per cent.
MoSPI emphasized that the registered manufacturing industry experienced a broad-based expansion, driven by positive movements in capital investment, production output, and worker compensation.
Where the Jobs Are: Key Employment Sectors
While growth is widespread, employment remains concentrated in a few critical industries. More than 41 per cent of the total manufacturing workforce in 2024-25 was employed across just five sectors:
- Food products
- Textiles
- Basic metals
- Motor vehicles
- Wearing apparel
The Scale Divide: Small Units vs. Industrial Giants
The survey reveals a massive structural divide between small-scale operations and large industrial units in terms of capital and output.
Small-Scale Establishments
Factories with an investment in plant and machinery of up to Rs 5 crore make up the lion's share of the industry by volume, constituting 78.69 per cent of all operating establishments. However, their economic footprint is relatively small:
- Fixed Capital Share: 10.55 per cent
- Workforce Engagement: 34.32 per cent
- Total Output Contribution: 19.24 per cent
- Net Value Added: 17.61 per cent
Large-Scale Powerhouses
In contrast, units with investments of Rs 10 crore and above represent only 15.84 per cent of factories but dominate the economy. These giants hold 87.42 per cent of total fixed capital and employ 59.66 per cent of the workforce. Most impressively, they generate 76.82 per cent of gross output and 78.07 per cent of total net value added.
Output Concentration
The disparity is even more evident when looking at output levels. Factories producing gross output of up to Rs 1 crore account for 18.34 per cent of units but contribute a negligible 0.08 per cent to total output.
On the other end of the spectrum, factories with output exceeding Rs 10 crore make up 47.63 per cent of operating units. This elite group controls 95.55 per cent of fixed capital, employs 88.78 per cent of the workforce, and pays 94.57 per cent of all emoluments, while contributing a staggering 98.10 per cent to total output and 97.87 per cent to net value added.