IIP growth slips to 9-month low of 1.2% on broad-based slowdown
The Index of Industrial Production (IIP), released by the Ministry of Statistics and Programme Implementation on June 30, showed that the last time industrial activity was lower than the level seen in May 2025 was in August 2024, when the Index had grown 0.1%.
'As expected, growth in India's industrial production moderated to a 9-month low of 1.2% in May,' Rajani Sinha, Chief Economist at CareEdge Ratings said. 'Slowdown in manufacturing growth along with contraction in both the mining and electricity sectors dragged down the overall IIP growth.'
The manufacturing sector saw its growth rate nearly halving to 2.6% in May 2025 compared to 5.1% in May last year, and 3.1% in April 2025. The mining sector witnessed a contraction of 0.15% in May 2025, compared to a growth of 6.6% in May last year. The sector had contracted 0.15% in April 2025 as well.
The electricity sector contracted 5.8% in May 2025, compared to a robust growth of 13.7% in May last year, and a 1.75% growth in April 2025.
The primary goods sector contracted for the second consecutive month, by 1.9% in May 2025 and 0.2% in April. The sector had grown 7.3% in May last year.
The consumer durables sector contracted by 0.7% in May 2025, on a high base of 12.6% in May last year. The consumer non-durables sector, however, contracted by 2.4% in May 2025, the fourth consecutive month of contraction, on a relatively low base of 2.8% growth in May 2024.
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