Five Key Sectors Drive 46% of India’s Manufacturing GVA
According to recent data from the Ministry of Statistics and Programme Implementation (MoSPI), five key sectors contributed 46% of India’s total manufacturing gross value added (GVA) in 2022-23.
These industries—basic metals, chemicals, refined petroleum, motor vehicles, and pharmaceuticals—remain central to the country’s manufacturing output.
MoSPI’s Annual Survey of Industries report reveals that basic metals and chemical products alone accounted for 22% of the total manufacturing GVA. Motor vehicles showed notable growth, increasing their share from 6.6% in 2021-22 to 8% in 2022-23. However, the pharmaceutical sector saw a slight decrease in its contribution compared to the previous year.
Maharashtra, Gujarat, and Tamil Nadu Lead in GVA Contribution
Five states emerged as the primary contributors to the nation’s manufacturing GVA and employment. Maharashtra held the largest share at 16%, followed by Gujarat at 15% and Tamil Nadu at 10%. For employment, Tamil Nadu led with 15%, while Maharashtra followed with 12.8%, and Uttar Pradesh held 8%, showing strong employment despite a smaller share in GVA.
Karnataka and Maharashtra both reported an uptick in employment share, while Uttar Pradesh experienced a notable increase in GVA contribution from the previous year.
Manufacturing Sector Growth and Employment Rebound
India’s manufacturing GVA grew by 7.3% in 2023-24, signaling recovery and expansion post-COVID. Moneycontrol reported that formal sector employment in manufacturing rose at its highest rate in 11 years, fueled by increased capital spending surpassing pre-pandemic levels. Profitability also showed resilience, with formal sector firms posting Rs 9.76 lakh crore in profits. Despite a slight dip, wage growth stayed strong at 14.2% in FY23.
These developments highlight the resilience and evolving dynamics of India’s manufacturing sector, driven by high-performing industries and major economic regions, contributing significantly to the country’s economic landscape.
