The Ministry of Statistics and Programme Implementation (MoSPI) has released the Annual Survey of Industries (ASI) for 2023-24, showcasing the performance and trends in India's industrial sector.
GVA grew by 11.89%, higher than both output (5.80%) and input (4.71%), indicating that the industrial sector is becoming more efficient, with a greater value generated from the inputs used.
The industries contributing most to GVA include:
Basic Metals
Motor Vehicles
Chemicals
Food Products
Pharmaceuticals
These sectors are export-oriented and labor-intensive, contributing nearly 48% of total industrial output.
Employment in the industrial sector grew by 5.92% year-on-year, reflecting that industrial growth is driving job creation.
Over the last decade (2014-15 to 2023-24), the sector has added 57 lakh (5.7 million) jobs.
Average emoluments (wages and salaries) rose by 5.6%, although wages still lag behind GVA growth.
The top 5 states by employment are:
Tamil Nadu
Gujarat
Maharashtra
Uttar Pradesh
Karnataka
Maharashtra (16%), Gujarat (14%), and Tamil Nadu (10%) are the leading contributors to industrial GVA.
Industrial Growth & GDP: Manufacturing accounts for 17% of India’s GDP, creating opportunities to boost economic growth and global competitiveness.
Foreign Direct Investment (FDI): India attracted USD 81.04 billion in FDI in FY 2024-25, with manufacturing FDI rising 18%, positioning India as a global investment hub.
Modernization: Rapid modernization in key sectors like electronics, pharma, automotive, and textiles offers opportunities for higher value addition and global leadership.
Policy Support: Initiatives like PLI, GST reforms, and the National Manufacturing Mission create favorable conditions for scaling operations and attracting investments.
Green Manufacturing: There is significant opportunity in renewable energy and net-zero targets, driving innovation in green manufacturing and positioning India for global alignment.
Workforce & Skill Development: Programs like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) are promoting inclusive job creation and workforce upskilling.
Infrastructure Gaps: India still faces logistics, power, water, and warehousing deficiencies, which hinder industrial efficiency despite reductions in logistics costs.
MSME Credit Gaps: Micro, Small, and Medium Enterprises (MSMEs) face credit gaps and high borrowing costs, which limit their growth potential.
Global Competition: Low-cost producers like China and Vietnam continue to challenge Indian manufacturers. India faces issues like limited R&D and weak design capabilities, restricting its global competitiveness.
Adoption of Industry 4.0: Uneven adoption of Industry 4.0 and concerns over job displacement from automation limit the growth of MSMEs.
Non-Tariff Barriers & Trade Issues: Non-tariff barriers, rising tariffs (e.g., 50% tariffs on Indian exports to the US), and Free Trade Agreement (FTA) cautions hinder India’s competitiveness in the global market.
Expanding the National Industrial Corridor Programme with Smart Cities will enhance connectivity, lower logistics costs, and attract investment for balanced regional industrial growth.
Initiatives like Make in India, Atmanirbhar Bharat, and the National Manufacturing Mission (NMM) can drive growth in priority sectors such as electronics, EV batteries, pharmaceuticals, and renewable energy.
Programs such as PMKVY and Skill India are bridging the gap in technical expertise and preparing the workforce for advanced manufacturing, fostering growth in industrial capabilities.
Enhanced access to credit, faster GST refunds, and startup incentives will support MSMEs in scaling operations, driving innovation, and integrating into global value chains.
Promoting renewable energy adoption, circular economy practices, and compliance with global standards (e.g., EU Carbon Border Adjustment Mechanism (CBAM)) will strengthen India's position as an eco-conscious manufacturer, boosting exports.
Improving Free Trade Agreements (FTAs), reducing non-tariff barriers, and drawing lessons from countries like Japan can help India improve its export competitiveness and better integrate into global value chains.
The Annual Survey of Industries (ASI) is the primary source of industrial statistics in India and plays a key role in understanding the performance and structure of the industrial sector.
The ASI is conducted under the Collection of Statistics (Amendment) Act, 2017, which provides the legal framework for collecting industrial statistics.
Ministry of Statistics and Programme Implementation (MoSPI), specifically the NSSO’s Industrial Statistics Wing, is responsible for compiling and releasing the ASI data.
The ASI aims to provide crucial data for:
Output: The total value of goods and services produced in the industrial sector.
Value Added: Gross value added (GVA) which indicates the economic contribution of industries.
Employment: Data on the workforce engaged in industrial activities.
Capital Formation: Information related to investments in machinery, infrastructure, and other capital assets.
Structural Changes in Industries: Monitoring changes in industry composition, performance, and structure over time.
Factories under the Factories Act, 1948: This includes all industrial establishments that meet the legal definition of a factory.
Section 2m(i) and 2m(ii) of the Factories Act provides the definitions.
Bidi & Cigar Manufacturing Establishments: Covered under the Bidi & Cigar Workers Act, 1966.
Electricity Undertakings: Factories and units related to electricity generation and distribution that are not registered with the Central Electricity Authority (CEA).
Large Establishments with ≥100 Workers: These are included based on the Business Register of Establishments (BRE) maintained by state governments.
Defence Establishments: Factories and units that are part of the defence sector are not included.
Oil Storage and Distribution Depots: These are outside the purview of the ASI.
Departmental Units: Includes facilities like railway workshops, telecommunication units, etc., that are not considered industrial establishments.
Gas Storage Units: Not included in the survey as they do not fall under the industrial classification.
As India sets its sights on becoming a USD 35 trillion economy by 2047, the industrial sector will play a crucial role in driving this growth. With reforms such as PLI, the National Manufacturing Mission, and skill development initiatives, India's industrial sector is poised for strong momentum. By capitalizing on favorable global realignments and resilient supply chains, India is positioned to become not just the “factory of the world”, but a global hub for innovation and industrial leadership
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