Tamil Nadu tops in factory strength and employment in manufacturing sector: ASI 2023-24

It ranks third in terms of Gross Value Added and output, reflecting its balanced performance across industrial production and value generation.

Published Aug 28, 2025 | 11:07 AMUpdated Aug 28, 2025 | 11:07 AM

Tamil Nadu tops in factory strength and employment in manufacturing sector: ASI 2023-24

The Ministry of Statistics and Programme Implementation (MoSPI) has released the results of the Annual Survey of Industries (ASI) 2023-24, presenting a strong performance of India’s manufacturing sector, with Tamil Nadu continuing to emerge as a leader in employment and the number of factories.

Key highlights from ASI 2023-24:

  • Gross Value Added (GVA) in the manufacturing sector grew 11.89 percent in current prices during 2023-24 over the previous year.
  • Industrial output recorded an increase of 5.80 percent in 2023-24.
  • Employment in the sector rose by 5.92 percent compared to last year, adding over 57 lakh jobs during the decade (2014-15 to 2023-24).

Tamil Nadu holds the first position in India in terms of the number of factories (15.43%) and total employment in the sector (15.24%), underscoring its role as the country’s manufacturing hub.

It also ranks third in terms of Gross Value Added (10.26%) and output (10.11%), reflecting its balanced performance across industrial production and value generation.

The state’s dominance in employment indicates the strong labour absorption capacity of its diverse industries, spanning automobiles, textiles, leather, food products, electronics, and pharmaceuticals.

The top five industries in GVA at the all-India level are: Basic Metals, Motor Vehicles, Chemicals, Food Products, and Pharmaceuticals.

The top five states in employment are Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh, and Karnataka, together contributing to over half of India’s manufacturing workforce.

At the national level, Basic Metals contributed the highest GVA (11.56%), while Food Products accounted for the largest share of factories (15.99%).

Output per worker stood at nearly ₹98.76 lakh, while net value added per worker rose to over ₹13.55 lakh in 2023-24. Contract workers now form 42 percent of the total workforce, highlighting changing labour patterns in manufacturing.

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