Archive · 2 Oct 2026
India Factory Investment Falls 8% Despite Record Hiring
Factories in India bought less new equipment and machinery in FY25.
This spending is called gross fixed capital formation.
It fell by 8% to Rs 63,497 crore.
This was the first such decrease since the pandemic.
Investment had grown sharply in the previous two years.
It rose 77% in FY23 and 18% in FY24.
At the same time, factories hired more workers.
This means investment and hiring moved in opposite directions during FY25.
Gross fixed capital formation in India’s registered manufacturing sector fell 8% in FY25.
Factory investment declined to Rs 63,497 crore, according to the Annual Survey of Industries.
The FY25 drop was the first decline in fixed-asset investment since the pandemic.
Investment had risen 77% in FY23 and 18% in FY24.
Factories increased hiring in FY25 despite the investment downturn.
- Who
- India’s registered manufacturing factories.
- What
- Fixed-asset investment fell 8% while factory hiring increased in FY25.
- When
- FY25, following increases in investment in FY23 and FY24.
- Where
- India’s registered manufacturing sector.
- Investment measure
- Gross fixed capital formation (GFCF)
- FY25 investment
- Rs 63,497 crore
- Year-on-year change
- Down 8%
- FY23 change
- Up 77%
- FY24 change
- Up 18%
- Employment trend
- Factories increased hiring in FY25
- Data source
- Annual Survey of Industries