Gaining ground: Household manufacturing grows 4x faster than corporates
Household manufacturing in India is growing nearly four times faster than corporate entities. This sector's gross value added shows a substantial compound annual growth rate. Corporate manufacturing's share of total manufacturing GVA has seen a decrease. The expansion is driven by smaller businesses and better informal sector data. Textiles, apparel, and metal products lead household…
New Delhi: Household manufacturing is rapidly expanding in India's industrial economy, growing at four times the rate of corporate manufacturing from FY23 to FY25, according to recent data. Household units contributed 19.4% of manufacturing GVA in FY25, a significant increase from 14.8% in FY23, while corporate manufacturing's share dropped to 80.6%.
This shift is driven by strong growth in smaller household businesses, accompanied by improved measurement of informal-sector activity. GVA from household manufacturing surged at a compound annual growth rate (CAGR) of 25.2% during FY23-25, outpacing the 6.7% growth of corporate manufacturing, even at constant prices. Household manufacturing units saw a 24.5% annual increase in operating surplus to ₹4.6 lakh crore in FY25, compared to a 7% rise to ₹15.3 lakh crore for corporate units.
The growth in household manufacturing reflects a low base for these smaller businesses, but also highlights a significant share of self-employment. The trend in household manufacturing could signal continued expansion at the smaller end of the manufacturing base, according to a report by BofA Global Research.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
