Around One-Fifth of India's Registered Factories Remained Idle Through FY16-FY25
A recent industry survey shows that roughly 18% of factories registered between FY16 and FY25 were not operating, despite a 14.5% rise in total registrations.
India saw a 14.5% increase in registered factories between FY16 and FY25, but the latest annual industry survey reveals that 18.13% of these plants were non-operational in FY25. Recent years have witnessed factory registration growth of roughly 2.66% in FY24 and 2.64% in FY25, yet this expansion has not automatically boosted overall industrial capacity. The three states of Tamil Nadu, Gujarat and Maharashtra account for about 38% of all factories, but each reports a larger share of idle facilities than the country’s average.
During the same period, Tamil Nadu’s share of national factory gross value added rose modestly, while Gujarat and Maharashtra saw declines in their shares. Despite the rise in its GVA contribution, Tamil Nadu still lags behind the national average in output per worker.
Why it matters
High idle rates suggest that factory growth may not be translating into productive capacity, affecting employment and economic output.
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