TL;DR: Employment in India’s registered factory sector increased from 1.35 crore persons in 2013-14 to 2.10 crore in 2024-25, an increase of 55.1%. Gross Value Added (GVA) increased by 153% over the same period, reaching ₹26.94 lakh crore at current prices. This translates into compound annual growth of 4.1% in employment and 8.8% in nominal GVA. In 2024-25, employment grew by 7.2%, while nominal GVA per person engaged increased by 2.2%. Food products were the largest single employing industry group. Tamil Nadu led states in employment, while Maharashtra accounted for the largest GVA share.

Context

A factory’s contribution to the economy can be measured in several ways. It provides employment, produces goods and adds value by converting materials into products. However, these measures do not necessarily grow at the same pace.

For instance, a factory may increase production by expanding its workforce, installing machinery or manufacturing higher-value products. A rise in the monetary value of production can also reflect higher prices. Understanding industrial growth therefore requires looking beyond the total value produced.

The Annual Survey of Industries (ASI) provides data on employment, output, value addition and capital in the establishments it covers. This article examines how employment and value addition have changed over time, and how their shares differ across industries and states.

The monetary figures used here are at current prices. Their growth should not be interpreted as inflation-adjusted growth.

Who Compiles This Data?

The Annual Survey of Industries report is published by the Ministry of Statistics and Programme Implementation (MoSPI). It provides information on the composition, growth and structure of the registered factory sector and contributes to national and state-level economic statistics.

Where can I download Clean & Structured Data on Industries?

Clean, structured and ready-to-use datasets on employment, output, value addition and capital can be downloaded from Dataful.

Key Insights

Employment Increased by 55% Since 2013-14, While Nominal GVA More Than Doubled

Total persons engaged in the factories sector increased from 135.38 lakh in 2013-14 to 209.97 lakh in 2024-25, a rise of 55.1%. GVA increased by 153% at current prices, from ₹10.65 lakh crore to ₹26.94 lakh crore. This translates into compound annual growth of 4.1% in employment and 8.8% in nominal GVA over 11 years.

In 2024-25, employment increased by 14.08 lakh persons, or 7.2%, while nominal GVA grew by 9.6%. GVA per person rose by a smaller 2.2%, from ₹12.55 lakh to ₹12.83 lakh, below its longer-term compound annual growth rate of 4.5%.

These employment figures may also reflect changes in survey estimates, rather than a direct count of fresh hiring. MoSPI notes that survey coverage and sample changes can influence annual comparisons but does not quantify their contribution to the latest increase.

The trends also diverged in 2020-21. Employment fell by 3.2%, while nominal GVA rose by 8.8%, from ₹14.86 lakh crore to ₹16.17 lakh crore. Prices, industry composition and employment intensity could help explain this difference, but the aggregate data cannot establish the cause.

Food Products Was the Largest Single Employing Industry Group

Food products accounted for 11.2% of total persons engaged in 2024-25, making it the largest single industry group by employment. Its share of GVA was lower, at 7.9%.

Textiles and apparel are reported as separate industry groups. Textiles accounted for 8.4% of employment and apparel for 7%. Combined, they represented roughly 15% of persons engaged, compared with about 6.6% of GVA.

Basic metals showed the reverse pattern. It accounted for 7.5% of persons engaged and 11.6% of GVA. Motor vehicles and trailers represented 7% of employment and 9.5% of GVA.

Pharmaceuticals and chemicals also had higher GVA shares than employment shares. Pharmaceuticals accounted for 5.2% of persons engaged and 8.1% of GVA. Chemicals accounted for 5.5% and 8.4%, respectively.

These comparisons show that industries contribute differently to employment and value addition. A higher GVA share relative to employment indicates higher nominal value added per person than the overall sector average. However, it does not automatically establish greater efficiency or better wages.

Tamil Nadu Led Employment, While Maharashtra Had the Largest GVA Share

Tamil Nadu accounted for 15% of persons engaged in 2024-25, the highest share among states. Its GVA share was 10.9%.

Maharashtra had the largest GVA share, at 15.9%, alongside an employment share of 13.1%. Gujarat accounted for 13% of employment and 14.1% of GVA.

Together, Tamil Nadu, Maharashtra and Gujarat represented approximately 41.1% of employment and 40.9% of GVA. Around four in every ten persons engaged in the ASI-covered sector worked in these three states.

Other states also showed differences between the two measures. Uttar Pradesh accounted for 8.7% of employment and 6.6% of GVA. Odisha represented 1.8% of employment but 4% of GVA. Karnataka’s GVA share of 7.3% exceeded its employment share of 6.3%.

These differences reflect variations in the scale and composition of industrial activity. States with more capital-intensive or higher-value industries have larger GVA shares relative to employment.

Why Does It Matter? 

Factory-sector employment and nominal value addition have both expanded, but at different speeds. Between 2013-14 and 2024-25, employment grew at a compound annual rate of 4.1%, while nominal GVA grew at 8.8%.

In the latest year, employment increased by 7.2%, while nominal GVA per person grew by 2.2%. Reading these measures together gives a clearer picture of expansion than either employment or aggregate GVA alone.

The distribution also matters. Tamil Nadu, Maharashtra and Gujarat account for around two-fifths of both employment and GVA, but their individual contributions differ. Tamil Nadu has the largest employment share, while Maharashtra leads in GVA.

Food products, textiles and apparel account for larger shares of employment than value addition. Basic metals, pharmaceuticals and chemicals show the reverse. These differences mean that a shift in which industries expand can change the relationship between employment and GVA growth.

Key Numbers

• Persons engaged: 135.38 lakh in 2013-14, rising to 209.97 lakh in 2024-25.

• Nominal GVA: ₹10.65 lakh crore in 2013-14, rising to ₹26.94 lakh crore in 2024-25.

• Growth in 2024-25: Employment increased 7.2%, nominal GVA 9.6%, and nominal GVA per person 2.2%.

• Largest employing industry: Food products, with 11.2% of persons engaged.

• Leading states: Tamil Nadu accounted for 15% of employment; Maharashtra accounted for 15.9% of GVA.

• Combined concentration: Tamil Nadu, Maharashtra and Gujarat accounted for 41.1% of employment and 40.9% of GVA.