India’s manufacturing sector recorded robust expansion in FY24, with Gross Value Added (GVA) rising 11.89%, up from 7.3% in FY23, according to the Annual Survey of Industries (ASI) released on Wednesday.
The Ministry of Statistics and Programme Implementation (MoSPI) said that the country’s industrial output grew by 5.80% between April 2023 and March 2024, signalling resilience in the post-pandemic recovery phase.
The report showed that employment in the manufacturing sector increased by 5.92% year-on-year in FY24.
The sector has added more than 57 lakh jobs in the last decade, with 1,95,89,131 workers employed in factories during FY24.
The top five industries contributing to GVA growth were basic metals, motor vehicles, chemical products, food products, and pharmaceuticals.
On the state front, Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh, and Karnataka led in providing the highest number of factory jobs.
The manufacturing sector currently contributes around 17% to India’s GDP. Officials said the consistent rise reflected in ASI surveys underscores economic recovery after Covid-19 and the addition of more jobs, particularly in labour-intensive states.
This growth trajectory aligns with the government’s ‘Make in India’ initiative, which aims to raise manufacturing’s share to 25% of GDP by 2025.
The ASI report comes at a time when the US has imposed 50% tariffs on Indian imports.
Economists believe the move could be a defining moment for India, urging the country to accelerate ‘Make in India 2.0’, strengthen supply chains, and diversify export markets.
They argue that while short-term pain is inevitable, these challenges could lay the groundwork for long-term gains in competitiveness.
Looking ahead, SBI Research estimated India’s GDP growth at 6.8–7% in Q1 FY26, supported by higher discretionary spending.
GVA growth for the quarter is projected at 6.5%, suggesting that the manufacturing sector will remain a crucial driver of India’s growth momentum.
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