ECONOMY
Growth engine runs out of steam, IIP grows by 10-month low of 1.5% in June
- IBJ Bureau
- Jul 29, 2025
Growth of industrial production slowed to a 10-month low of 1.5 per cent in June 2025 due to poor performance of mining and power sectors. These sectors were impacted by excess rains, especially in the second half of the month, according to official data released on Monday.
The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 4.9 per cent in June 2024.
The National Statistics Office (NSO) also revised upwards the pace of industrial production growth for May to 1.9 per cent from the earlier estimate of 1.2 per cent released last month.
The previous low pace of growth was recorded in August 2024 when the output growth had stayed flat.
“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, the chief economist and head of research and outreach of ICRA, in a statement.
The NSO data showed that the manufacturing sector’s output growth rose marginally to 3.9 per cent in June 2025 from 3.5 per cent in the year-ago month.
Mining production contracted by 8.7 per cent against growth of 10.3 per cent recorded a year ago.
Power production declined by 2.6 per cent in June 2025 against 8.6 per cent growth in the year-ago period.
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