Tech, heavy engineering lead profit growth in manufacturing
NEW DELHI: High-value segments, such as technology, heavy engineering and automotive segments, have led the profit growth in India's organised manufacturing sector in 2024-25, the latest annual survey of industries ( ASI ) data showed. Despite headwinds, these sectors ensured resilient overall value addition and broader wage distribution across the formal manufacturing sector.
Among industries, computer and electronic products recorded a 46% jump in profits to Rs 41,100 crore, alongside a 20% expansion in the wage bill (Rs 33,800 crore). Fabricated metals manufacturing matched this momentum in profits, with a 46% profit jump to Rs 34,180 crore.
The ASI data showed that net profit in the overall formal manufacturing sector rose 7.7% in 2024-25 to reach Rs 11.6 lakh crore, while the total wage bill - including salary, bonus and employers' contribution in the form of provident fund - expanded 12.3% to nearly Rs 9 lakh crore.
The pharmaceutical industry saw a 24% jump in profits to Rs 1.2 lakh crore, while its wage bill increased 19% to Rs 69,300 crore. Labour intensive industries, which employ a vast majority of the formal manufacturing workforce such as textiles and wearing apparel, saw their profitability rise 34% (Rs 24,232 crore) and 30% (Rs 17,567 crore) respectively. Wage bill for these industries, however, grew moderately. Textiles saw a 10% rise to Rs 52,749 crore, while total wages in the wearing apparel rose 17% to Rs 40,888 crore.
Core heavy industries and consumer segments also posted robust gains. Basic metals generated the highest absolute net profits among major groups at Rs 1.4 lakh crore (12.7% rise), while the wage bill crossed Rs 80,000 crore. Motor vehicles saw net profits climb 19% to Rs 1.2 lakh crore, with wage bill rising by nearly 12% to Rs 83,000 crore.
Among industries, computer and electronic products recorded a 46% jump in profits to Rs 41,100 crore, alongside a 20% expansion in the wage bill (Rs 33,800 crore). Fabricated metals manufacturing matched this momentum in profits, with a 46% profit jump to Rs 34,180 crore.
The ASI data showed that net profit in the overall formal manufacturing sector rose 7.7% in 2024-25 to reach Rs 11.6 lakh crore, while the total wage bill - including salary, bonus and employers' contribution in the form of provident fund - expanded 12.3% to nearly Rs 9 lakh crore.
The pharmaceutical industry saw a 24% jump in profits to Rs 1.2 lakh crore, while its wage bill increased 19% to Rs 69,300 crore. Labour intensive industries, which employ a vast majority of the formal manufacturing workforce such as textiles and wearing apparel, saw their profitability rise 34% (Rs 24,232 crore) and 30% (Rs 17,567 crore) respectively. Wage bill for these industries, however, grew moderately. Textiles saw a 10% rise to Rs 52,749 crore, while total wages in the wearing apparel rose 17% to Rs 40,888 crore.
Core heavy industries and consumer segments also posted robust gains. Basic metals generated the highest absolute net profits among major groups at Rs 1.4 lakh crore (12.7% rise), while the wage bill crossed Rs 80,000 crore. Motor vehicles saw net profits climb 19% to Rs 1.2 lakh crore, with wage bill rising by nearly 12% to Rs 83,000 crore.
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