The number of registered factories rose 14.5 per cent between the financial year 2015-16 (FY16) and FY25. During the same period, nearly one in five of these factories was not operating, according to the latest annual survey of industries. In FY25, 18.13 per cent of factories were non-operational. Factory growth has picked up in recent years, rising 2.66 per cent in FY24 and 2.64 per cent in FY25, yet more factories do not automatically mean higher industrial capacity. Tamil Nadu, Gujarat and Maharashtra together accounted for about 38 per cent of all factories, but in recent years, they have had a higher share of non-operational units than the national average. Between FY16 and FY25, Tamil Nadu’s share of all-India factory gross value added (GVA) rose by 0.58 percentage points, while Gujarat’s fell by 2.47 and Maharashtra’s by 3.59 percentage points. Even so, Tamil Nadu trails in labour productivity, with output per person engaged below national averages.
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