Negligible small enterprises in UP, hardly any factories in Bihar, finds Eco Survey 2025

The Survey said that lack of factories or enterprises may mean higher presence of unorganised industries

The Economic Survey for 2024-25 found that regional disparities in industrialisation continues to exist despite some states making some headway in attracting new industrial investments over the years.

The Survey found that Uttar Pradesh, the country's most populous state, hardly has any small enterprises, a key generator of industrial employment in India, while Bihar, another popular state, has hardly any factories.

In contrast, Tamil Nadu has the highest number of factories per person, followed by Gujarat. The Survey also found that four states- Maharashtra, Gujarat, Karnataka, and Tamil Nadu- contributed 43 percent of the total industrial gross state value added (GSVA). The north-eastern states, except Sikkim and Assam, account for just 0.7 percent of the industrial GVA, with the Survey stressing on the need to have industrial strategies appropriate for "unique geographies" such as the north-eastern states.

The Survey noted that a high dependence on the industrial sector in certain states need not necessarily translate to high levels of industrial development or high incomes, with only a handful of states such as Gujarat, Himachal Pradesh, and Uttarakhand having used their their industrial dependence to generate higher incomes for the state's people.

Additionally, the Survey added that a lack of organised enterprises or factories per capita may also mean a higher presence of unincorporated sector.  "It is an opportunity for those states to recognise, nurture and increase the durability and scales of their smaller enterprises, with appropriate policy facilitation and deregulation," the Survey said.

The Survey data pointed to states with high levels of ease of doing business having higher industrial activity, such as Tamil Nadu, Gujarat, Karnataka, Telangana, Andhra Pradesh, Punjab, and Haryana.

"States should make it easier for businesses to commence operations, to grow and even be closed, if deemed inevitable by the entrepreneur. Allowing economic activity as far as possible and getting out of the way will foster faster convergence of living standards and per capita incomes," the Survey concluded.