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India's industrial output growth slowed to a 10-month low of 1.5 percent in June 2025, a notable drop from 1.9 percent in May. This slowdown was primarily due to weak performance in the mining, electricity, and primary goods sectors. While manufacturing showed improvement, other key sectors contracted, impacting the overall Index of Industrial Production (IIP). This trend, with worse growth last recorded in August 2024, highlights a moderation in industrial activity, even as some segments like infrastructure goods continue to show positive growth, pointing to mixed signals in the nation's industrial landscape.
India's industrial output growth saw a slowdown in June 2025, reaching a 10-month low of 1.5 percent. This figure marks a drop from the 1.9 percent growth recorded in May. The Ministry of Commerce and Industry released this data. Advertisement
The main reasons for this slowdown were poor performance in the mining, electricity, and primary goods sectors. The mining and quarrying sector, in particular, saw its worst performance in 58 months, shrinking by 8.7 percent in June 2025. The electricity sector also contracted by 2.6 percent. Similarly, the primary goods sector experienced its worst performance in 56 months, contracting by 3 percent.
However, not all sectors showed a decline. The manufacturing sector demonstrated improvement, growing at 3.9 percent in June 2025, which is its highest growth in five months. Intermediate goods also showed growth, increasing by 5.5 percent, and infrastructure and construction goods grew by 7.2 percent.
The Index of Industrial Production (IIP), a measure of overall industrial output, last recorded worse growth numbers in August 2024. This recent data points to a mixed picture of India's industrial activity. While some core sectors faced challenges, others, particularly those related to manufacturing and infrastructure, continued to show expansion.
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