Manufacturing GVA: Maharashtra Leads With 15.92 Percent Share

Manufacturing GVA in India remained concentrated in five states during FY2024-25.

Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh collectively contributed more than 54 percent of the country's total manufacturing Gross Value Added (GVA), according to the Annual Survey of Industries (ASI) released by the Ministry of Statistics and Program Implementation (MoSPI).

Maharashtra led with a 15.92 percent share, followed by Gujarat at 14.10 percent and Tamil Nadu at 10.90 percent.

However, the distribution of registered manufacturing establishments presents a different picture.

Tamil Nadu has the largest factory base, raising questions about differences in industrial scale, production mix and value addition across states.

Why Does Maharashtra Generate More Manufacturing GVA Than Its Factory Share Suggests?

Maharashtra accounted for 15.92 percent of India's manufacturing GVA in FY25, while its share of registered manufacturing establishments stood at 10.26 percent.

The state reported 27,379 establishments, considerably fewer than Tamil Nadu's 41,221 factories, highlighting how the geographical distribution of manufacturing units does not necessarily correspond with their contribution to economic value addition.

Gujarat also demonstrated a relatively strong contribution, accounting for 14.10 percent of manufacturing GVA against 12.39 percent of establishments. Karnataka contributed 7.31 percent of GVA with 5.86 percent of establishments.

Industrial composition, capital intensity, establishment size, input costs and the types of products manufactured can influence GVA contributions.

A state with a greater concentration of large-scale or capital-intensive industries may generate a higher share of value addition without having the largest number of factories.

Also Read: Manufacturing in Maharashtra 2026: Industries, Hubs & Investments

How Does Tamil Nadu's Manufacturing Establishment Base Compare With Its GVA?

Tamil Nadu presents a contrasting pattern in the state-wise manufacturing GVA distribution. It accounted for 15.44 percent of India's registered manufacturing establishments in FY25, the highest among all states, but contributed 10.90 percent of total manufacturing GVA.

The state nevertheless improved its GVA contribution from 10.26 percent in FY24 to 10.90 percent in FY25. Its manufacturing base includes automotive, engineering, textiles, electronics and other industrial activities.

The difference makes manufacturing output across Indian states an important area for further investigation. Establishment counts alone cannot explain the economic contribution of individual industrial clusters.

What Do These Manufacturing GVA Differences Mean for India's Industrial Development?

The country's registered manufacturing establishments increased from approximately 2.60 lakh in FY24 to 2.67 lakh in FY25, while manufacturing GVA rose from Rs 24.58 lakh crore to Rs 26.94 lakh crore, registering growth of 9.59 percent.

Industrial investors and manufacturers evaluating new facilities need to consider the existing industrial ecosystem, availability of suppliers, infrastructure, skilled labour and access to markets rather than relying solely on factory concentration.

For policymakers, the differences between state-level establishment and GVA shares underline the importance of strengthening industrial infrastructure and supporting technology adoption, capacity expansion and higher-value manufacturing activities.

As India pursues its broader manufacturing ambitions, improving value addition across a wider group of states could become as important as increasing the country's overall factory base.