India’s Manufacturing Sector Sees 1.7x Higher Retention with Focus on Wellbeing

New Delhi, January 30, 2026: India’s manufacturing sector is witnessing improved employee retention and workplace outcomes as organisations increasingly adopt people-first practices, according to India’s Best Workplaces in Manufacturing 2026, a new report released by Great Place To Work® India. The report highlights that manufacturing companies prioritising employee wellbeing, trust, and psychological safety record up to 1.7 times higher retention compared to others

Manufacturing contributes nearly 16% to India’s GDP and employs over 27 million people. The study indicates that organisations with stronger workplace cultures consistently outperform peers on employee trust, engagement, and overall experience. Despite the sector ranking among the top three industries on employee feedback, only 12% of organisations surveyed qualified for recognition as Best Workplaces, pointing to significant scope for improvement.

According to the findings, Best Workplaces in Manufacturing reported an 8% higher Trust Index™ score and 7% stronger overall employee sentiment than other workplaces. However, challenges remain. Nearly one in five employees experiences medium to high burnout, while psychological safety, though averaging 88%, drops to around 80% among Gen Z and staff-level employees.

Balbir Singh, CEO, Great Place To Work India, said “India's manufacturing sector ranks among the top three industries on the employee feedback, reflecting strong shopfloor sentiment. However, our study shows that only 12% are able to earn the Best Workplace recognition on our list. In this sector, 1 in 5 employees experiences medium to high burnout, underscoring persistent pressure on today’s workforce. Organisations can respond to this challenge by embedding wellbeing, purpose, and psychological safety into every step of the employee journey, enabling up to 1.6 times stronger retention outcomes. I extend my heartfelt congratulations to all the winners of India's Best Workplaces in Manufacturing 2026 for elevating the standards of the industry.”

The report also highlights gaps in gender diversity, with women accounting for only 11% of the manufacturing workforce, compared to 27% across other industries. Employees who feel involved in decision-making and supported in wellbeing initiatives are significantly more likely to stay, reinforcing the link between inclusive leadership and long-term retention.

Great Place To Work® India recognised Top 50 Large Organisations and Top 30 Mid-size Organisations as India’s Best Workplaces in Manufacturing 2026, acknowledging companies that have embedded trust, wellbeing, and purpose into their people practices. The report notes that as the sector accelerates digital and AI-led transformation, human-centric workplace strategies will be critical to sustaining growth and competitiveness.