Household manufacturing units in India recorded a compound annual growth rate (CAGR) of 25.2% at current prices between FY23 and FY25, compared with 6.7% for corporate manufacturing, according to an analysis of current-price data from the recently released National Accounts Statistics 2026. At constant prices, the gap remained substantial: household manufacturing grew at a 23.4% CAGR against 7.9% for corporate manufacturing.
Share Shift
The growth differential shifted the composition of India’s total manufacturing gross value added (GVA). Household manufacturing’s share rose from 14.8% in FY23 to 19.4% in FY25, while the corporate sector’s share fell from 85.2% to 80.6% over the same period. Manufacturing as a whole accounts for approximately 15% of India’s total GVA.
What’s Driving the Numbers
Household manufacturing in this data primarily comprises unincorporated enterprises small workshops, home-based manufacturers, family-owned production units and self-employed businesses. Textiles, apparel and leather account for the largest share of household manufacturing GVA, followed by fabricated metal products and food processing, sectors that remain labour-intensive and closely tied to India’s broader MSME base.
Improved measurement through the Annual Survey of Unincorporated Sector Enterprises (ASUSE) has also enhanced the visibility of informal manufacturing activity in the data, meaning part of the sector’s apparent size reflects better statistical capture rather than growth alone. It remains unclear from the available data how much of the shift represents genuine underlying expansion versus improved benchmarking and coverage, and whether the growth is translating into higher productivity, better job quality, or firms moving durably from household to larger enterprise scale.
Broader Data Context
The household manufacturing figures sit within a wider revision to India’s National Accounts. The Ministry of Statistics and Programme Implementation (MoSPI) rebased the National Accounts Statistics series from 2011-12 to 2022-23, releasing the revised series in February 2026. Under this revised series, manufacturing GVA at constant prices grew 12.7% in FY24, 9.3% in FY25, and 10.7% in FY26, with an overall CAGR of 10.88% across FY23-FY26. The Economic Survey 2025-26 noted that medium- and high-technology industries now account for 46.3% of India’s manufacturing value added.