Global conflicts and supply chain disruptions have made domestic manufacturing more important than ever. India’s factories are not only expanding, but are also attracting substantial investment. Capital invested in the country’s manufacturing surged nearly 46 per cent over a four-year span.
According to the data released by the Ministry of Statistics and Programme Implementation (MoSPI), the capital investment in the sector increased from ₹51.91 lakh crore in FY 2020-21 to ₹75.56 lakh crore in FY 2024-25.
“During FY2024-25, the registered manufacturing industry experienced notable expansion, driven by upward trends across key economic metrics, including capital investment, production output, Gross Value Added (GVA), workforce numbers and compensation compared with the previous year,” MoSPI said.
The manufacturing sector now employs more than 27 million workers, while recording an average annual nominal growth rate of 10.88 per cent.
Manufacturing’s contribution to the economy has also increased. The sector generated ₹34.83 lakh crore, accounting for 14.6 per cent of India’s Gross Value Added (GVA) in 2022-23. By 2025-26, its output had risen to ₹46.12 lakh crore, lifting its share in the economy to 15.6 per cent of nominal GVA.
A handful of industries continue to dominate factory output. Basic metals account for 11.6 per cent of manufacturing production, followed by motor vehicles and parts (9.5 per cent), chemicals and chemical products (8.5 per cent), pharmaceuticals (8.1 per cent), food products (7.9 per cent) and machinery (6.9 per cent). Together, these sectors contribute more than half of India’s manufacturing output.
The rise in investment, output and manufacturing’s share in the economy suggests that India’s push to strengthen domestic production is gaining traction. With companies expanding capacity across sectors ranging from automobiles and chemicals to pharmaceuticals and machinery, manufacturing is increasingly emerging as a key pillar of the country’s growth story.
Meanwhile, Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh have emerged to be the top five states in respect of GVA, accounting for over 54 per cent of the total manufacturing GVA of the country in 2024-25.
