GENERAL1 Oct 2026
New factory investment falls in FY25 for first time since pandemic: ASI
New factory investment in India fell 8 per cent in FY25, the first drop since the pandemic. Factories still hired more workers, and wages per worker rose 5.3 per cent to ₹2.28 lakh, slightly faster than profit growth. Profit per factory rose 5 per cent to ₹4.33 crore. For business owners, expansion is slowing even as staff costs climb, so plan capital spending carefully.
Key Statutory Highlights
- Gross fixed capital formation fell 8 per cent in FY25, the first decline since the pandemic, after two years of strong growth.
- Factories added workers, and wages per worker grew 5.3 per cent to ₹2.28 lakh.
- Profit per factory grew 5 per cent in FY25 to ₹4.33 crore, so wage growth edged slightly ahead of profit growth.
Actionable Advice for Taxpayers / Founders:If you run a factory or manufacturing unit, revisit your capital spending plans before committing to new plant or machinery, and speak to your accountant about how slower investment and rising wage costs may affect your cash flow this year.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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