Manufacturing Sector Sees Growth Surge in 2024-25

The Reserve Bank of India's latest data reveals a 6% increase in sales for listed manufacturing companies in 2024-25, a notable rise from the previous year's 3.5%. The growth was primarily driven by the automotive, electrical machinery, and pharmaceutical sectors.

In a contrasting trend, prominent industries such as petroleum and iron & steel faced a downturn in sales. Across the broader spectrum, private non-financial firms recorded a sales growth escalation to 7.2% from the predecessor year's 4.7%.

Nevertheless, rising input and staffing expenses exerted pressure on operating profit growth, notably moderating it for manufacturing companies. This reflects in a subtler increase in profit margins across major service sectors, including IT and non-IT entities.

(With inputs from agencies.)