Business · India Bureau
India's manufacturing sector expands 9.28% in FY25 led by five states
A government survey shows India's manufacturing gross value added grew 9.28% during the fiscal year ending March 2025, with Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh driving expansion across the corporate sector.
LSN India ·
India's manufacturing sector demonstrated robust growth in FY25, with gross value added expanding 9.28% according to government data. The expansion reflects continued momentum in the country's industrial output as the economy navigates global headwinds and domestic policy shifts.
Five states emerged as the primary engines of manufacturing growth during the fiscal year. Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh collectively accounted for the largest share of manufacturing GVA contributions, underscoring the concentration of industrial activity in India's developed manufacturing hubs and Special Economic Zones.
The growth trajectory signals resilience in India's manufacturing base, which has been targeted for expansion under the government's Make in India initiative and production-linked incentive schemes. The performance suggests sustained corporate investment and capacity expansion across key industrial clusters.
The regional concentration of manufacturing growth highlights disparities in industrial development across India, with southern and western states maintaining competitive advantages in attracting investment and supporting production infrastructure. The data indicates ongoing consolidation of manufacturing activity in established industrial corridors rather than dispersal to emerging regions.