Sovrenn Times: Macroeconomy Update | 28 August 2025
India’s Manufacturing GVA Hits ₹24.6 Lakh Cr in FY24, Employment Up to 19.5M
India’s manufacturing GVA grew 11.9% YoY to ₹24.6 Lakh Cr in FY24, up from ₹21.9 Lakh Cr in FY23, and marking a 65.5% surge over pre-pandemic FY20 (₹14.8 Lakh Cr), per the Annual Survey of Industries (ASI) 2023-24. Key contributors were basic metals (11.6%), motor vehicles (9.1%), chemical products (8.8%), food products (7.4%), and 8pharma (7.2%). Industrial output rose 5.8% to ₹153.3 Lakh Cr, while invested capital climbed 10.8% to ₹68 Lakh Cr. Employment grew 5.9% YoY to 19.5M workers, exceeding pre-pandemic levels (16.6M in FY20). Over the last decade (2014–24), the sector added 57 lakh jobs. By sector, food products employed 2.2M, followed by textiles (1.7M), basic metals (1.5M), and motor vehicles (1.4M). Tamil Nadu (2.9M), Gujarat (2.6M), Maharashtra (2.5M), UP (1.6M), and Karnataka (1.2M) together accounted for more than half of total factory jobs.
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India Eyes Shrimp Demand Push: Per Capita Consumption Half of Japan, 40% Exports at US Risk
With the US imposing steep tariffs on Indian shrimp exports, the government has formed a committee under the National Fisheries Development Board (NFDB) to build a robust domestic shrimp market. The panel, led by NFDB’s S. Kannappan, includes stakeholders from farmers, feed makers, and MPEDA. India’s per capita shrimp consumption is nearly half of Japan’s, highlighting the untapped demand potential. Farmers have proposed measures like live shrimp transport without water and consumer experience centres to expand reach. Awareness drives, including stalls promoting shrimp’s health benefits, are being considered. Shrimp farmers say a strong local market is vital to ensure fair value for their produce and reduce dependence on the US, which currently absorbs ~40% of India’s seafood exports.
India Targets 40 Nations with $590B Textile Imports as US Tariffs Hit $48B Exports
To offset the impact of 50% US tariffs on $48B worth of exports, India is rolling out textile outreach programmes in 40 countries, including the UK, UAE, Russia, Japan, and South Korea. These markets collectively import $590B in textiles and apparel, but India holds only a 5–6% share, leaving significant room for expansion. The commerce ministry will drive a Brand India campaign, push participation in exhibitions and trade fairs, and conduct buyer-seller meets. Export Promotion Councils will lead market mapping and link domestic clusters to overseas demand. With the US—India’s largest trading partner, accounting for 20% of FY25 exports ($437B)—no longer a level playing field, officials say FTAs and new trade negotiations are key to positioning India as a reliable, sustainable, and innovative supplier in these target geographies.
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Industrial Jobs Rise 6% to 1.95 Cr in FY24; GVA Jumps 12% to ₹24.6 Lakh Cr: ASI
India’s industries added 11 lakh jobs in FY24, with employment rising 5.92% YoY to 1.95 Cr from 1.84 Cr in FY23, per the Annual Survey of Industries (ASI) 2023-24. Over the last decade (2014–24), the sector generated 57 lakh jobs. Gross Value Added (GVA) in industries grew 11.9% to ₹24.6 Lakh Cr from ₹21.97 Lakh Cr, while invested capital rose 10.8% to ₹68 Lakh Cr. The top five GVA-contributing industries were basic metals, motor vehicles, chemicals, food products, and pharmaceuticals. On jobs, Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh, and Karnataka emerged as the top five states. Conducted by MoSPI, the ASI provides insights into industrial output, value addition, employment, and capital formation, feeding into National Accounts Statistics at both national and state levels.
ST Detects ₹104 Cr Illicit Tobacco in Q1 FY26; Smuggled Cigarette Seizures Top ₹600 Cr
GST authorities unearthed 61 cases of illicit tobacco trade worth ₹104.38 Cr between April–June 2025, per government data. Enforcement agencies including DGGI and DRIseized 3.93 Cr cigarette sticks in the quarter, with smuggled cigarette seizures surging 107% in volume and 110% in value (FY20–FY24). Former CBIC chief PC Jha estimated FY25 seizures by DRI, CRPF, and Assam Rifles at ₹600 Cr, warning that high tobacco taxes fuel smuggling and revenue loss. To counter evasion, the Finance Act 2025introduced a track-and-trace mechanism for tobacco and pan masala, mandating timely reporting by manufacturers, alongside new penalties for violations. Experts, however, caution that moves like a third 40% GST slab could worsen grey trade and revenue instability. The government is positioning upcoming GST reforms as a chance to balance tax moderation with enforcement to curb illicit trade in high-margin goods like gold, alcohol, and tobacco.