CHENNAI: India’s manufacturing employment remains sharply concentrated across a small group of states and industries, with Tamil Nadu again emerging as the single largest contributor, according to the Economic Survey 2025-26, which was released on Thursday.
The survey shows that seven states together account for around 60% of total employment in the manufacturing sector. TN tops the list with a 15% share of manufacturing jobs, followed by Gujarat and Maharashtra at 13% each.
Uttar Pradesh accounts for 8% of employment, while Karnataka and Haryana contribute 6% apiece. Telangana accounts for a further 5%, underlining the dominance of a few industrialised states in absorbing manufacturing labour.
The survey points to a strong concentration of larger factories in states such as Maharashtra, Madhya Pradesh, Tamil Nadu, Himachal Pradesh, Haryana, Uttarakhand, Karnataka and Uttar Pradesh.
These states also recorded higher productivity levels, measured in terms of net value added (NVA) per person engaged, reinforcing the link between factory scale and efficiency in organised manufacturing.
Last year also the state ranked top with a similar percentage of share in manufacturing jobs.