India’s manufacturing sector delivered robust growth in FY24, with Gross Value Added (GVA) rising by 11.89%, up sharply from 7.3% in the previous fiscal, according to the Annual Survey of Industries (ASI) released by the Ministry of Statistics and Programme Implementation.
Industrial output grew by 5.8% between April 2023 and March 2024. Employment in the manufacturing sector witnessed a dramatic 592% year-on-year jump, with factory-based jobs engaging nearly 1.96 crore workers during FY24. Over the past decade, the sector has generated more than 57 lakh jobs, underlining its growing role in India’s economic landscape.
Key contributors to GVA growth included basic metals, automobiles, chemicals, food products, and pharmaceuticals, while Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh, and Karnataka led the state-wise job rankings.
Manufacturing currently accounts for around 17% of India’s GDP, and the sustained momentum suggests continued recovery in the post-COVID period, particularly in labour-intensive industries. The growth trajectory aligns with the government’s “Make in India” initiative, which targets raising the sector’s GDP contribution to 25% by 2025.
The survey also comes at a time when the U.S has imposed 50% tariffs on Indian imports, prompting economists to argue that India should seize this moment to strengthen supply chains, diversify exports, and accelerate the “Make in India 2.0” agenda. Short-term challenges, they added, could pave the way for long-term competitiveness and resilience in Indian manufacturing.
