INDUSTRY
Industrial production loses steam, May 2025 IIP growth slows down to 1.2%
- IBJ Bureau
- Jul 01, 2025
Growth of industrial production slowed to a nine-month low of 1.2 per cent in May 2025 due to poor performance of manufacturing, mining and power sectors caused by the early onset of monsoon, according to official data released on Monday.
The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 6.3 per cent in May 2024.
The National Statistics Office also revised downwards growth of industrial production for April to 2.6 per cent from the earlier estimate of 2.7 per cent released last month.
The previous low was observed in August 2024, when IIP remained unchanged.
The NSO data showed that manufacturing sector’s growth of output 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 growth of 6.6 per cent a year ago.
Power production too declined by 5.8 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.
“The early onset of monsoon doused activity in mining and demand for electricity, with both these sub-sectors of the IIP reporting a contraction in May 2025, amidst anaemic growth of manufacturing,” noted Aditi Nayar, the chief economist and head of research and outreach of ICRA.
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