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Informist, Monday, Jun. 30, 2025

 

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--India May IIP growth 1.2% vs 6.3% year ago
--Informist poll estimated May IIP growth at 2.3%
--India Apr IIP growth revised to 2.6% vs 2.7% provisional
--India May mining sector growth -0.1% vs 6.6% year ago
--India May manufacturing sector growth 2.6% vs 5.1% year ago
--India May electricity sector growth -5.8% vs 13.7% year ago
--India May primary goods output growth -1.9% vs 7.3% year ago
--India May capital goods output growth 14.1% vs 2.6% year ago
--India May intermediate goods output growth 3.5% vs 3.5% year ago
--India May infrastructure goods output growth 6.3% vs 7.6% year ago
--India May consumer durables output growth -0.7% vs 12.6% year ago
--India May consumer non-durables output growth -2.4% vs 2.8% year ago
--India May industrial growth of 1.2% lowest in 9 months

 

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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