Delhi Manufacturing Growth 3X Faster Than National Average

• Delhi’s manufacturing sector grew 11.9% in 2024-25, triple the national 4.1
• Overall industrial output in Delhi rose 9.19%, surpassing national 4% growth.
• Growth in food, leather, and vehicles; declines in apparel, electronics, and pharma.

Manufacturing in Delhi achieved notable growth of 11.9% in FY 2024-25, almost three times the national growth of 4.1%, which indicates a strong recovery from industrial downturn previously experienced in the Capital, noted in the 2024-25 Index of Industrial Production (IIP) report released by the Directorate of Economics and Statistics, Government of Delhi. 

Overall Industrial Production increased 9.19% from FY 2023-24, higher than the national industrial growth of 4%. This report, for 2024-25 also uses the 2011-12 base year and is constructed from data compiled by 134 manufacturing units and one electricity unit across 90 product categories.

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Nine groups exhibited positive IIP growth, including food products, leather, motor vehicles, transport equipment, fabricated metals, chemicals, and beverages. Conversely, 13 groups experienced declines—apparel, wood products, electronics, petroleum, pharmaceuticals, and machinery—due to proactive business modernization or closure, foreign relocation of factories, or zero factory production.

The IIP measures the amount of change in volume as a function of the base year, with weightings of 586.1 and 413.9 for manufacturing and electricity, respectively, determined by their relative contribution to State gross value added in 2011-12. The electricity sector in Delhi recorded a modest increase of 3.35%, sluggish compared to the national growth of 5.2%.

This data clearly demonstrates Delhi's industrial resilience in coping with challenges such as the relocation of factories and global economic uncertainties, as it remains a key player in India's manufacturing landscape. The report highlights the need for targeted policies to continue growth in economically lagging sectors.