Top 7 Manufacturing States in India in 2026: Check Which South Indian State Leads
The manufacturing sector in India is diversifying and states are developing robust manufacturing industries in the sectors such as automobiles, electronics, chemicals, textiles, pharmaceuticals, engineering, etc. However, the growth rate differs widely from state to state. The states are ranked based on the number of registered manufacturing establishments as per the Annual Survey of Industries (ASI), 2024-25.
1. Tamil Nadu
Approximately 15.4% of the manufacturing units registered in India are located in Tamil Nadu, which has the maximum number of manufacturing units in the country with 41,221 units. It has an industrial network that extends from Chennai and Sriperumbudur to Hosur, Coimbatore, Tiruppur, Ranipet and Thoothukudi with automobiles, electronics, textiles, engineering, footwear and chemicals.
The state is also gaining new investments in newer manufacturing areas. During the 2026 period, L&T had an investment of ₹18,600 crore in the data centres, electronics manufacturing and shipbuilding business, including the construction of a ₹2,500-crore electronics plant in Coimbatore. Further confirming Tamil Nadu as its EV hub, Hyundai announced it will invest over ₹26,000 crore in the state during the period 2023 to 2032.
2. Gujarat
Currently, Gujarat has 33,084 registered manufacturing units which make up approximately 12.39% of the total manufacturing units in India. These factories are concentrated in Ahmedabad, Vadodara, Surat, Rajkot, Sanand, Dahej and Jamnagar. It has market strengths in chemicals, petrochemicals and engineering, automobiles, pharmaceuticals and textiles. Tata Electronics Dholera fab is a 66.2 hectares investment of ₹91,526 crore with an expected capacity of 50,000 wafers per month and 21,000 jobs. In the meantime, Micron's Sanand facility is an investment of approximately USD 2.75 billion.
3. Maharashtra
Approximately 27,379 manufacturing establishments registered in Maharashtra accounting for 10.26% of the manufacturing GVA in India. The major manufacturing hubs consist of Pune, Mumbai-Thane, Nashik, Chhatrapati Sambhajinagar and Nagpur, which cover the automobile, engineering, pharmaceutical, chemicals and electronics sectors.
The momentum of investments is continuing to build in 2026. The proposed Bharat-Switzerland industrial enclave in the Mumbai Metropolitan Region would be spread over 5,000 acres and would witness investments of approximately ₹1.25 lakh crore, creating approximately 1.5 lakh direct and indirect jobs.
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4. Uttar Pradesh
Uttar Pradesh has approximately 25,000 registered manufacturing units, which make up approximately 9.35% of the total manufacturing units in India. Its major clusters are Noida, Greater Noida, Ghaziabad, Kanpur, Lucknow and Agra with electronics, mobile phones, leather, textiles, food processing and engineering being its key industries.
The state's electronics and semiconductors industry is booming. In 2026, 206 acres of electronics projects were established at Jewar with an investment of ₹6,750 crore. The state is also promoting a semiconductor park of 1000 acres on Yamuna Expressway.
5. Andhra Pradesh
Andhra Pradesh has approximately 16,440 registered manufacturing units, which make up approximately 6.61% of the total manufacturing units in India. The manufacturing industry is distributed across Sri City, Tirupati, Visakhapatnam, Kurnool and Kadapa with electronics, automobiles, food processing, pharmaceuticals and renewable energy being the main areas. Royal Enfield cleared a manufacturing plant with an investment of ₹2,508 crore at Tirupati and Apollo Tyres approved a ₹6,100 crore plant at Sri City. There are 28 projects worth ₹22,178 crore that were approved in recent times, which are projected to generate jobs.
6. Karnataka
Karnataka has approximately 15,640 registered manufacturing units, which make up approximately 5.86% of the total manufacturing units in India. Bengaluru, Mysuru, Tumakuru, Dharwad, Kolar and Mangaluru are the key centres. It has a strong strength in electronics, automobiles, aerospace, engineering, biotechnology and machinery.
Karnataka has recently approved projects worth ₹29,679 crore which will create 66,360 jobs, in which Mahindra Aerostructures has been approved for ₹2,300 crore while Toyota Kirloskar has been approved for ₹1,200 crore. Foxconn's Devanahalli plant is an investment of ₹20,000 crore spread over 300 acres with employment in sight of 50,000 jobs.
7. Telangana
Telangana has approximately 11,070 registered manufacturing units, which make up approximately 4.15% of the total manufacturing units in India. The leading industrial centers of the state are Hyderabad, Medchal, Sangareddy and Rangareddy, and Telangana has significant manufacturing in the pharmaceuticals, electronics, aerospace, chemicals and electrical equipment sectors.
Rashmi Group has plans for a steel plant that will generate approximately 12,000 jobs and will cost around ₹12,500 crore. Schneider Electric is also putting an investment of ₹623 crore in growing its manufacturing units at Gagillapur and Shamshabad. TCS subsidiary, HyperVault, acquired 264 acres in Hyderabad for a proposed 1GW AI data-centre facility.
Where is manufacturing employment concentrated?
Industrial jobs are also present in large numbers in the formal sector in India, especially in manufacturing. The new ASI data indicates that it is a few big industrial states that have the heaviest concentration of employment, depending on the size of their factory ecosystem.
The top 5 states in terms of manufacturing jobs in 2024-25 were Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh and Haryana with over 56% of the total employment. Tamil Nadu is one of the largest employment-generating employment markets in the country, with the presence of the large Automobile, Electronics, Textile and Engineering industries.
Conclusion
India's manufacturing potential is distributed across a wide range of industrial States, with each one having its sectoral strength. In some cases, some factories are more numerous than others, in other cases, some factories are more performing in manufacturing value, employment or in investments in high-tech. These hubs are poised to become more important for India's industrial development due to new projects in sectors such as semiconductors, electronics, EVs and advanced manufacturing.