India's Industrial Production Growth Falls To 9-Month Low Of 1.2% In May 2025
The NSO data shows that the manufacturing sector's output growth decelerated to 2.6 per cent in May 2025 from 5.1 per cent in the year-ago month.
IIP Growth In May 2025: India's factory output growth, based on the Index of Industrial Production, in May 2025 slipped to an nine-month low of 1.2% amid poor performance of manufacturing, mining and power sectors, according to the latest official data released on June 30, 2025.
The IIP growth had stood at 2.6% in the previous month of April 2025 and at 6.3% in May last year.
The National Statistics Office (NSO) also revised upwards industrial production growth for April to 2.6 per cent from the earlier estimate of 2.7 per cent released last month.
The NSO data showed that the manufacturing sector's output growth decelerated to 2.6 per cent in May 2025 from 5.1 per cent in the year-ago month.
Mining production contracted by 0.1 per cent against a growth of 6.6 per cent a year ago.
Power production declined by 5.5 per cent in May 2025 against 13.7 per cent growth in the year-ago period.
During the April-May period of FY26, industrial production grew by 1.8 per cent compared to 5.7 per cent a year ago.
India's economic activity is likely to slowdown in the first quarter of the year, compared with 7.4 percent growth witnessed in the fourth quarter of FY25.
Aditi Nayar, chief economist of ICRA Ltd, said, 'The IIP growth expectedly eased to a nine-month low of 1.2% in May 2025 from 2.6% in April 2025, while printing lower than ICRA's forecast of about 2% for the month. 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, amid an anemic growth of manufacturing."
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. Tepid industrial volume growth in the first two months of the quarter doesn't augur well for industrial GVA growth in Q1 FY2026, she added.
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