Business · Economy · 8 hrs ago

Large Factories Account for Most of India's Manufacturing Output

Large Factories Account for Most of India's Manufacturing Output

India's statistics ministry found that a small share of factories produced most manufacturing output in the year ending March 31, 2025.

Plants with annual output above ₹500 crore made up about 3.6% of operational capacity but accounted for 62.07% of output and nearly 61% of net value added.

Factories producing up to ₹10 crore a year represented 52.36% of operational units, but contributed just 1.92% of output.

The figures show that manufacturing value is concentrated in large plants, even though smaller factories are far more numerous.

Factories with at least ₹10 crore invested in plant and machinery generated 76.82% of output and employed 59.66% of workers.

Manufacturing corporate-sector gross value added rose 9.28% in FY25, but value added per worker grew only 2.25% as employment increased 7.57%.

The survey also found that employment remained concentrated in a handful of industries.

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