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Time of India
29-07-2025
- Business
- Time of India
At 1.5%, industrial growth slows to 10-mth low in June
NEW DELHI: Industrial output growth slowed to a 10-month low in June, dragged down by a contraction in mining and electricity sectors and sluggish capital goods and consumer durables segments. Data released by the National Statistics Office (NSO) on Monday showed the index of industrial production (IIP) rose an annual 1.5% in June, slower than the upwardly revised 1.9% in May and below the 4.9% recorded in June last year. The mining sector contracted 8.7% in June compared with a growth of 10.3% in June last year, and the electricity sector fell 2.6% during the month compared to a growth of 8.6% in June last year. The manufacturing sector remained resilient, rising 3.9% during June compared to a growth of 3.5% in June last year. Experts attributed the slowdown to excess rains which had weighed on mining and electricity sectors. "Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month. Encouragingly, the growth in manufacturing output improved to 3.9% in June 2025 from 3.2% in May 2025," said Aditi Nayar, chief economist at ratings agency Icra. The data also showed weakness in other segments of the industrial sector. The capital goods sector, a key gauge of industrial activity, remained sluggish during the month, rising by 3.5% in June compared to a growth of 3.6% in June last year. The consumer durables sector slowed in June, rising by 2.9% compared to a growth of 8.8% in June last year while the consumer non-durables sector contracted by 0.4% during the month compared to a decline of 1% in June last year. "On the demand side, signals remain mixed. Output of consumer non-durables goods continued to remain weak, staying in the contractionary zone for five consecutive months, while output of consumer durable goods improved. Urban consumption, in particular, remains lagging," said Rajani Sinha, chief economist at ratings agency CareEdge. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Indian Express
28-07-2025
- Business
- Indian Express
June industrial growth falls to 10-month low of 1.5%
India's industrial growth fell to a 10-month low of 1.5 per cent in June on the back of a fall in output of mining and electricity sectors. The Index of Industrial Production (IIP), which had risen 1.9 per cent in May and 4.9 per cent in June 2024, rose in June primarily due to the manufacturing sector – which makes up more than three quarters of the index – posting a 3.9 per cent year-on-year (YoY) rise in its output, up from 3.2 per cent in May, according to the data released on Monday by the Ministry of Statistics and Programme Implementation. Meanwhile, mining sector output contracted by 8.7 per cent, while electricity generation was down 2.6 per cent. In May, mining output had declined by 0.1 per cent, while that of electricity had fallen 4.7 per cent. 'The slowdown in IP growth in June was led by deeper contraction in the mining sector, shaving off 124 basis points (bps) from headline, even as both manufacturing and electricity generation added to headline IP. A high base effect was at play in the mining sector, aggravating the sharp sequential decline that the index witnessed in June vs May,' Barclays economists said in a note. At 1.5 per cent, the June industrial growth figure takes the average for April-June to 2 per cent, the lowest in 11 quarters. In the first quarter of 2025, the average IIP growth was 3.9 per cent. Industrial activity, particularly in the mining sector, was dampened in April-June due to excessive rains, which also cooled temperatures and reduced the demand for power. This was reflected in lower electricity generation. As per the use-based classification, June saw capital goods output growth slump to 3.5 per cent from 13.3 per cent in May, while the production of primary and consumer non-durables continued to be lower compared to a year ago. On the other hand, output of consumer durables rose 2.9 per cent in June after shrinking by 0.9 per cent in May. 'On the demand side, signals remain mixed. Urban consumption, in particular, remains lagging. Nonetheless, consistent easing of inflation, a favourable monsoon, and recent policy rate cuts by the Reserve Bank of India are positives for the consumption scenario going forward. Against this backdrop, both demand and investment trends will need to be watched closely in the coming months,' CareEdge group chief economist Rajani Sinha said, adding that private capital expenditure is yet to show meaningful traction, although public investment continues to remain encouraging. Production of intermediate and infrastructure goods rose at a faster clip in June compared to May. While intermediate goods output growth rose to 5.5 per cent from 4.7 per cent in May, that of infrastructure goods increased to 7.2 per cent from 6.7 per cent.
Economic Times
28-07-2025
- Business
- Economic Times
Industrial Output Growth Slows to 10-mth Low in June
ANI Representational image Our BureauNew Delhi: India's industrial output growth slowed to a 10-month low at 1.5% in June, pulled down by contraction in mining and electricity sectors and subdued performance by the manufacturing sector, official data showed Monday. The Index of Industrial Production (IIP) expanded 1.9% in May and 4.7% in June 2024. "Excess rains in the second half of June 2025 are likely to have weighed on mining output, while also leading to a contraction in electricity generation, although the extent of the same narrowed compared to the previous month," said Aditi Nayar, chief economist at ratings firm ICRA. Among the three major sectors, only manufacturing grew in June, by 3.9%. Production shrank 8.7% in mining and 2.6% in electricity. "A marginal pickup in the manufacturing sector growth was more than offset by contraction in both the mining and electricity sector output," said Rajani Sinha, chief economist at CareEdge IIP growth dropped to 2% in the first quarter of the current fiscal year from 5.4% a year estimates industrial GVA (gross value added) growth to have decelerated in the first quarter ended GVA growth was 6.8% in the January-March quarter. Official figures for the June quarter will be released in the manufacturing sector, 15 of the 23 industry groups recorded growth in terms of use-based classification, two out of the six categories recorded a contraction: primary goods (3%) and consumer non-durables (0.4%)."The contraction in primary goods output reflects the weaker performance of mining," noted the positive side, infrastructure/construction goods led growth with a 7.2% increase."While private capex is yet to show meaningful traction, public capex continues to remain encouraging. However, persistent global uncertainties are weighing on the overall investment sentiment," said Sinha.
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Business Standard
14-07-2025
- Business
- Business Standard
Retail inflation drops to 2.1% in June; WPI slips into deflation at -0.13%
Vegetable and pulses prices see steepest fall in years; WPI turns negative too Shiva Rajora New Delhi India's retail inflation moderated further in June to 2.1 per cent from 2.82 per cent in May, aided by a positive base effect and a decline in prices in the food and beverage segment for the first time in over six years, offering room for the central bank's monetary policy committee to maintain status quo in its upcoming reviews. The last time the Consumer Price Index (CPI) reported this mild uptick was in January 2019 — at 1.97 per cent, data released by the National Statistics Office (NSO) on Monday showed. Separately, the Wholesale Price Index (WPI)-based factory gate inflation turned negative in June for the first time in 20 months, at -0.13 per cent as against 0.39 per cent in May, data by the Ministry of Commerce and Industry on Monday showed. The last time the WPI reported deflation was in October 2023, at -0.26 per cent. In retail inflation, the decline in food prices was mainly driven by a 19 per cent year-on-year (Y-o-Y) drop in vegetable prices — the sharpest pace of decline since December 2022 — and an 11.8 per cent (Y-o-Y) decline in pulses — the fastest fall in prices in over seven years. Spices and meat, which together have a 7.5 per cent weight in the CPI, also saw prices drop 3.03 per cent and 1.62 per cent, respectively. Rajani Sinha, chief economist at CareEdge Ratings, says that the good progress of the monsoon, adequate reservoir levels, and strong kharif sowing bode well for agricultural output and food price stability, and that close monitoring of the monsoon's spatial and temporal distribution remains crucial. 'The Reserve Bank of India (RBI) has already front-loaded the rate cuts anticipating moderation in inflation; hence, we do not expect further rate cuts unless economic growth weakens materially,' she added. Core inflation — which excludes volatile food and fuel components — edged up to 4.4 per cent in June, the highest since September 2023, on the back of a surge in gold prices and a steady increase in demand in the economy. Paras Jasrai, associate director at India Ratings & Research, says the rising core inflation might look concerning prima facie, but it was due to a sharp increase in prices of jewellery items, as gold prices rose to a 58-month high of 36 per cent due to tensions in West Asia. 'Services inflation inched up to a 22-month high of 4.1 per cent, indicative of steady demand in the services sector. However, over two-thirds of the items still have inflation of less than 4 per cent, pointing to a broader disinflationary profile of consumption items,' he said. The RBI may maintain a status quo in the upcoming review in view of the cumulative easing of 100 basis points done so far in 2025 and the change in stance to neutral from accommodative,' he added. Fuel prices decelerated to 2.78 per cent, while inflation in services like personal care (14.7 per cent), health (4.43 per cent), and transport (3.9 per cent) picked up pace in June. The NSO data further showed that retail prices rose 1.72 per cent in rural India and 2.56 per cent in urban areas. Among 22 major states and Union Territories (UTs) with a population of more than 5 million for which data is available, 10 states/UTs recorded an inflation rate higher than the national average. Kerala recorded the highest retail inflation of 6.71 per cent in June, while Telangana recorded deflation (-0.93 per cent). In the WPI, the deflation was led by a decline in the prices of primary food articles (-3.75 per cent), which fell for the third month in a row. This was driven by a decline in the prices of vegetables (-22.65 per cent), pulses (-14.1 per cent), potatoes (-32.7 per cent), onions (-33.5 per cent), and protein-rich food items like eggs, meat, and fish (-0.29 per cent). Meanwhile, the prices of factory-gate manufactured products decelerated to 1.97 per cent in June. This was led by a slowdown in prices of manufactured food products (6.99 per cent), paper products (1.52 per cent), chemicals (0.59 per cent), and rubber (0.47 per cent), among others. Prices of basic metals (3.14 per cent) and semi-finished steel (3.7 per cent) also dipped during the month. Fuel and power prices declined by 2.65 per cent in June, as the deceleration in global commodity prices — especially mineral oils — led to a fall in the prices of petrol (-6.57 per cent) and high-speed diesel (-5.12 per cent) for the 13th and 26th straight month, respectively. Cooking gas prices, however, rose by 2.68 per cent during June. 'The seasonal sequential uptick in food prices has been relatively modest in July 2025 so far. Besides, international crude oil prices have also eased somewhat in the ongoing month from the peak seen in June 2025, amid cooling tensions in West Asia, while remaining in deflationary territory. Overall, Icra expects the headline WPI to remain in deflationary territory in July 2025 despite an unfavourable base,' said Icra Ratings Chief Economist Aditi Nayar.
The Hindu
30-06-2025
- Business
- The Hindu
IIP growth slips to 9-month low of 1.2% on broad-based slowdown
Growth in industrial activity in India slumped to a 9-month low of 1.2% in May 2025, with the mining, electricity, primary goods, and consumer goods sectors all contracting, and manufacturing growth slowing sharply, as compared to their levels in May last year. 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.
