Annual Survey of Industries (ASI) 2024-25 Report

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Key takeaways

The Ministry of Statistics and Programme Implementation (MoSPI) released the Annual Survey of Industries (ASI) 2024-25, highlighting a 9.28% GVA growth in the corporate manufacturing sector.
Formal factory employment expanded by 7.57%, bringing the total formal manufacturing workforce to over 2.10 crore workers across India.
Industrial concentration remains heavy, with five states - Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh - generating over 54% of total manufacturing GVA.
Large factories holding plant and machinery worth Rs 10 crore and above make up only 15.84% of units, yet they command 87.42% of fixed capital and 78.07% of Net Value Added.

The Ministry of Statistics and Programme Implementation (MoSPI) released the official detailed report and summary results of the Annual Survey of Industries (ASI) 2024-25.
The latest findings report a 28% Gross Value Added (GVA) growth in the corporate manufacturing segment, showing strong growth across India's formal factory sector.

The Annual Survey of Industries (ASI) is the primary statistical study conducted by MoSPI to evaluate capital, employment, output, and value addition in registered manufacturing.
This survey operates under the legal framework of the Collection of Statistics Act, 2008 and its 2011 Rules.
It covers factories registered under Sections 2m(i) and 2m(ii) of the Factories Act, 1948, which include units using power with 10 or more workers and units without power with 20 or more workers.
The survey scope covers bidi and cigar units registered under the Bidi and Cigar Workers Act, 1966.
It includes non-CEA electricity undertakings involved in generating, transmitting, and distributing electric power.
Establishments employing 100 or more employees listed in the Business Register of Establishments (BRE) maintained by States fall under its statutory coverage.

The corporate manufacturing sector accounts for more than 89% of total manufacturing GVA and expanded its GVA by 9.28% over the previous fiscal year.
Net Value Added (NVA) per operational factory increased by 6.59%, while GVA per worker grew by 2.25%.
The total value of plant and machinery installed in registered units grew by 7.25% compared to the previous year.
The number of operating factories increased by 3.45%, and formal manufacturing employment grew by 7.57% to cross 2.10 crore total workers.
Five key industries generated more than 41% of total formal manufacturing jobs: Food Products, Textiles, Basic Metals, Motor Vehicles, and Wearing Apparel.
Five leading states contributed more than 54% of total national manufacturing GVA: Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh.

Small factories with plant and machinery up to Rs 5 crore make up 78.69% of all operating units and employ 34.32% of workers, but they hold only 10.55% of fixed capital and 17.61% of Net Value Added.
Large factories with machinery investments of Rs 10 crore and above represent 15.84% of units, but they hold 87.42% of fixed capital, employ 59.66% of workers, and generate 78.07% of Net Value Added.
Units producing an annual output above Rs 10 crore form 47.63% of total factories, controlling 95.55% of fixed capital and producing 97.87% of Net Value Added.
Micro units with annual output under Rs 1 crore account for 18.34% of factories, but they contribute only 0.08% of total gross output and record negative net value addition at -0.10%.

A 7.25% growth in plant and machinery investment shows sustained modernizing of factory capacity across high-tech sectors under central PLI schemes.
The 7.57% rise in corporate sector job growth confirms that new factory additions are creating formal wage opportunities, especially in electronics assembly hubs in Tamil Nadu and Haryana.
Strong performance in traditional labor-heavy sectors like food processing and garments shows continued strength in major hubs like Tirupur, Surat, and Noida.
A 6.59% rise in NVA per factory highlights better operating margins and production efficiency through digital supply systems.

Nearly 80% of operating factories produce less than one-fifth of national value added, trapping smaller enterprises in low capital and low productivity loops.
Manufacturing remains unbalanced, as more than 54% of manufacturing GVA comes from only five states, leaving eastern states mainly as raw material suppliers.
Labor productivity growth remains low, with GVA per worker growing by only 2.25% compared to overall corporate GVA growth of 9.28%.
Micro units producing under Rs 1 crore output face high power tariffs and compliance costs, causing margins to drop into negative figures like -0.24% NVA for units under Rs 25 lakh output.

The government should launch credit-linked capital support to help MSME units upgrade to automated equipment and modern enterprise tools.
India should use the PM Gati Shakti National Master Plan and freight corridors to set up dedicated industrial clusters in eastern states like Bihar, Odisha, West Bengal, and Jharkhand.
Authorities should reform training programs through the National Apprenticeship Promotion Scheme (NAPS) to boost worker productivity alongside capital growth.
States should build shared facility centers with shared testing labs and effluent treatment units to help small factories reduce costs and expand production.

The ASI 2024-25 highlights strong growth in Indian corporate manufacturing alongside expanding formal employment.
To reach the target of increasing manufacturing contribution to 25% of GDP, India must modernize small factories, balance regional growth, and upgrade worker skills.