The manufacturing sector of India continues to show growth in absolute terms, but significant challenges remain in its distribution and its production per capita. On Monday, the Muthukrishnan market expert underlined the unequal spread of manufacturing activities across the country.
According to shared data, only five states – Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Karnataka – count for 52% of all factories in India. The Tamil Nadu leads with a share of 16%, indicating a high regional concentration of industrial activity. This imbalance raises concerns about fair industrial growth and the need for expansion of manufacturing in other parts of the country.
Muthukrishnan has also shared figures from the World Bank on manufacturing to emphasize where India is worldwide. The standardized estimates of the World Bank in 2024 classify India as a sixth manufacturing nation, with a value -added capacity of $ 450 billion. Although this placed India among the world leaders, the gap with China, which is at the top of the list with 5.04 billions of dollars, remains substantial. The United States followed 2.60 billions of dollars, Japan, Germany and South Korea completing the first five.
Despite its absolute classification, India is considerably late in the production of manufacturing per capita. India manufacturing production is only $ 318, a fraction of $ 3,569 in China and US $ 7,834. Even the emerging savings such as Brazil tariff better, with a production per capita of $ 1,161, while Germany leads $ 10,704.
“As a country, we have failed in manufacturing. Only 5 states have 52% of all factories in India, the Tamil Nadu exceeding 16%. Manufacturing must spread from afar. The center and all states must be obsessed with manufacturing,” tweeted Muthukrishnan.
The disparity in the manufacturing imprint of India highlights an urgent need for expansion focused on policies in more states. Experts argue that central governments and states must prioritize industrial growth in underdeveloped regions, ensuring more balanced and inclusive economic development.
The data depicts a clear image: while the manufacturing sector of India increases, it must become more geographically diversified and increase its efficiency to compete worldwide. An accent renewed on infrastructure, skills development and industrial incentives could open the way to a more equitable and robust manufacturing landscape.
