India’s Manufacturing Grows, But Formal Jobs Remain Limited

India’s factories are producing more goods and hiring more people.

In 2024-25, manufacturing output grew by 7.8%, and employment grew by 7.2%.

More than 2 crore people worked in organised manufacturing that year.

However, this is still a small part of India’s total workforce.

Many more people work in informal businesses that are not part of the formal sector.

Wages have not grown as quickly as company profits.

The amount each worker produces has also stayed nearly the same.

Larger factories generally employ more people, pay higher wages, and have better productivity than smaller ones.