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Informist, Monday, Jun. 30, 2025
NEW DELHI - Growth in India's industrial production fell to 1.2% in May, the lowest in nine months, data released Monday by the statistics ministry showed. The moderation in growth in May was because of a fall in the output of mining and electricity sectors compared to a year ago.
Industrial output, as measured by the Index of Industrial Production, had risen by 6.3% in May 2024. The April print was revised lower to 2.6% from 2.7% originally.
At 1.2%, the May IIP growth print was sharply below expectations. Economists polled by Informist had estimated growth in industrial output at 2.3% in May. Sequentially, industrial output rose 3.2% from April.
The electricity sector saw the worst performance in nearly five years, as the output fell 5.8% year-on-year in May. This was likely because of a high base effect as electricity output had risen 13.7% a year ago.
The mining sector output fell year-on-year for the second consecutive month in May. Output fell 0.1% last month compared to a fall of 0.2% in April. Mining output fell on year also because of an unfavourable base, as production had risen 6.6% in May 2024.
Growth in the output of manufacturing sector, which has the biggest weightage in the IIP, also moderated in May. Production growth fell to a nine-month low of 2.6% last month from 3.1% in April.
Within the use-based classification, production of primary goods, consumer durables, and consumer non-durable goods fell on year in May. Primary goods output contracted 1.9% on year in May, the worst performance in nine months.
Output of consumer non-durables contracted for the fourth consecutive month in May. Output fell 2.4% on year compared with 2.7% on year decline in April. Consumer durables output fell 0.7% on year, the first contraction since November 2023.
Capital goods production continued its strong performance for the second month in a row in May. Output grew 14.1% on year in May, the fastest growth in 19 months.
"The early onset of the monsoon doused activity in mining and the demand for electricity, with both these sub-sectors of the IIP reporting a contraction in May 2025, amidst an anemic growth of manufacturing," ICRA Chief Economist Aditi Nayar said in a note. "Moreover, the underlying trends were uneven, with three of the use-based categories displaying a contraction, amidst a continued high 14.1% expansion in capital goods, boosted by a low base."
Industrial ouput has grown 1.8% in the first two months of the current financial year, sharply lower than the 5.7% growth in
Apr-May 2024. "Tepid industrial volume growth in the first two months of the quarter doesn't augur well for industrial GVA (gross value added) growth in Q1 FY2026 (Apr-Jun)," Nayar noted.
The following tables detail year-on-year changes in industrial output in May:
| May 2025 | April 2025 | May 2024 | |
| General | 1.2% | 2.6% | 6.3% |
| Mining | (-)0.1% | (-)0.2% | 6.6% |
| Manufacturing | 2.6% | 3.1% | 5.1% |
| Electricity | (-)5.8% | 1.7% | 13.7% |
| Primary goods | (-)1.9% | (-)0.2% | 7.3% |
| Capital goods | 14.1% | 14.0% | 2.6% |
| Intermediate goods | 3.5% | 4.9% | 3.5% |
| Infrastructure/construction goods | 6.3% | 4.7% | 7.6% |
| Consumer durables | (-)0.7% | 6.2% | 12.6% |
| Consumer non-durables | (-)2.4% | (-)2.7% | 2.8% |
| Mining | Electricity | Manufacturing | General | |||||
| FY26 | FY25 | FY26 | FY25 | FY26 | FY25 | FY26 | FY25 | |
| April | (-)0.2% | 6.8% | 1.7% | 10.2% | 3.1% | 4.2% | 2.6% | 5.2% |
| May | (-)0.1% | 6.6% | (-)5.8% | 13.7% | 2.6% | 5.1% | 1.2% | 6.3% |
| June | 10.3% | 8.6% | 3.5% | 4.9% | ||||
| July | 3.8% | 7.9% | 4.7% | 5.0% | ||||
| August | (-)4.3% | (-)3.7% | 1.2% | 0.0% | ||||
| September | 0.2% | 0.5% | 4.0% | 3.2% | ||||
| October | 0.9% | 2.0% | 4.4% | 3.7% | ||||
| November | 1.9% | 4.4% | 5.5% | 5.0% | ||||
| December | 2.7% | 6.2% | 3.7% | 3.7% | ||||
| January | 4.4% | 2.4% | 5.8% | 5.2% | ||||
| February | 1.6% | 3.6% | 2.8% | 2.7% | ||||
| March | 1.2% | 7.5% | 4.0% | 3.9% | ||||
| Mining | Manufacturing | Electricity | General | |
| FY25 | 3.0% | 4.1% | 5.2% | 4.0% |
| FY24 | 7.5% | 5.5% | 7.1% | 5.9% |
| FY23 | 5.8% | 4.7% | 8.9% | 5.2% |
| FY22 | 12.2% | 11.8% | 7.9% | 11.4% |
| FY21 | (-)7.8% | (-)9.6% | (-)0.5% | (-)8.4% |
| FY20 | 1.6% | (-)1.4% | 1.0% | (-)0.8% |
| FY19 | 2.9% | 3.9% | 5.2% | 3.8% |
| FY18 | 2.3% | 4.6% | 5.4% | 4.4% |
| FY17 | 5.3% | 4.4% | 5.8% | 4.6% |
| FY16 | 4.3% | 2.8% | 5.7% | 3.3% |
| FY15 | (-)1.4% | 3.8% | 14.8% | 4.0% |
| FY14 | (-)0.1% | 3.6% | 6.1% | 3.3% |
| FY13 | (-)5.3% | 4.8% | 4.0% | 3.3% |
Source: Ministry of Statistics and Programme Implementation
End
Reported by Shubham Rana
Edited by Vandana Hingorani
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