IIP progress slips to 9-month low of 1.2% on broad-based slowdown

Growth in industrial exercise in India slumped to a 9-month low of 1.2% in May 2025, with the mining, electrical energy, major items, and client items sectors all contracting, and manufacturing progress slowing sharply, as in comparison with their ranges in May final yr.

The Index of Industrial Production (IIP), launched by the Ministry of Statistics and Programme Implementation on June 30, confirmed that the final time industrial exercise was decrease than the extent seen in May 2025 was in August 2024, when the Index had grown 0.1%.

“As anticipated, progress in India’s industrial manufacturing moderated to a 9-month low of 1.2% in May,” Rajani Sinha, Chief Economist at CareEdge Ratings stated. “Slowdown in manufacturing progress together with contraction in each the mining and electrical energy sectors dragged down the general IIP progress.”

The manufacturing sector noticed its progress fee practically halving to 2.6% in May 2025 in comparison with 5.1% in May 2024, and three.1% in April 2025. The mining sector witnessed a contraction of 0.15% in May 2025, in comparison with a progress of 6.6% in May final yr. The sector had contracted 0.15% in April 2025 as properly.

The electrical energy sector contracted 5.8% in May 2025, in comparison with a sturdy progress of 13.7% in May final yr, and a 1.75% progress in April 2025. 

The major items 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 final yr.

The client durables sector contracted by 0.7% in May 2025, on a excessive base of 12.6% in May final yr. The client non-durables sector, nonetheless, contracted by 2.4% in May 2025, the fourth consecutive month of contraction, on a comparatively low base of two.8% progress in May 2024.