India’s industrial output slows to 1.2% in May, hits eight-month low

India’s industrial production grew by just 1.2% in May 2025, down from 2.6% in April, according to official data released on June 30. This marks the slowest pace of expansion in eight months.

The mining sector contracted by 0.1%, manufacturing output rose by 2.6%, while electricity generation saw a sharp 5.8% fall — the steepest decline in five years — largely due to excess rainfall during the month.

The dip in factory output corresponds with the broader industrial slowdown, as core sector growth in May also dropped to a nine-month low of 0.7%.

According to the Ministry of Statistics and Programme Implementation, the Quick Estimates of IIP stood at 156.6 in May 2025 compared to 154.7 a year ago.

Among use-based industries, capital goods registered a strong 14.1% growth, while infrastructure and construction goods grew 6.3%. However, consumer durables contracted 0.7% and consumer non-durables declined 2.4%. Primary goods output was down 1.9% year-on-year.

Also read: India’s core sector growth slows to 0.7% in May, lowest in 9 months

Within the manufacturing segment, 13 of 23 industry groups showed positive growth, with key contributions from the manufacture of basic metals (6.4%), machinery and equipment (11.8%), and non-metallic mineral products (6.9%). Cement, glassware, pumps and steel items were among the standout contributors.