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India’s industrial output growth slows to 9-month low of 1.2% in May
Jun-30-2025

With poor performance of manufacturing, mining and power sectors, India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), slowed to a nine-month low of 1.2% in the month of May 2025 as against a revised growth of 2.6% in April 2025. The government has revised downwards industrial growth figure for April 2025 to 2.6% from the provisional estimate of 2.7% released in the previous month. The factory output growth in May was lower than 6.3 per cent growth in May 2024. The Quick Estimates of IIP for May 2025 stood at 156.6 against 154.7 in May 2024. During the April-May period of FY26, industrial production grew by 1.8% compared to 5.7% a year ago.

Manufacturing activity, which comprises the largest component of the index, expanded on an annual basis by 2.6%, compared to 5.1% in the same month last year. Mining contracted by 0.1%, versus a 6.6% increase in the previous year. Electricity production contracted to 5.8%, as against 13.7% growth in the May 2024. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of April 2025 stood at 136.3, 154.3 and 216.0 respectively.

Within the manufacturing sector, 13 out of 23 industry groups at NIC 2 digit-level have recorded a positive growth in May 2025 over May 2024. The top three positive contributors for the month of May 2025 are – ‘Manufacture of basic metals’ (6.4%), ‘Manufacture of machinery and equipment n.e.c.’ (11.8%) and ‘Manufacture of other non-metallic mineral products’ (6.9%).

As per the use base classification, three of the six sectors witnessed a contraction, with primary goods sector contracting 1.9% in May 2025 from 7.3% growth in a year ago. Consumer durables contracted 0.7% compared with 12.6% growth a year ago. Consumer non-durable growth remained contracted in the reporting month to 2.4% in May compared with 2.8% growth corresponding month of last year. However, capital goods growth was higher at 14.1% compared with 2.6% in a year ago month, whereas Infrastructure/ construction goods industries came down to 6.3% from 7.6% growth a year ago. In May 2025, growth in intermediate goods remained flat at 3.5% compared to May 2024.

The indices stood at 157.9 for Primary Goods, 120.1 for Capital Goods, 168.1 for Intermediate Goods and 198.1 for Infrastructure/ Construction Goods for the month of May 2025. Further, the indices for Consumer durables and Consumer non-durables stood at 129.3 and 150.3 respectively. 

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