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.You use AI every day. Now get your AI Quotient. Take the AIQ test.