India's Industrial Growth Hits a Snag: What the Latest Data Reveals

Industrial Production Growth Declines

New Delhi: Recent official statistics indicate that India's industrial production growth has decelerated to 2.7% in April 2025, primarily due to underwhelming performance in the manufacturing, mining, and power sectors.

In contrast, the factory output, as gauged by the Index of Industrial Production (IIP), had experienced a 5.2% increase in April 2024.

The National Statistics Office (NSO) has also adjusted the industrial production growth for March, raising it to 3.9% from a previous estimate of 3%. The IIP growth for February stood at 2.7%.

According to the NSO data, the manufacturing sector's output growth eased to 3.4% in April 2025, down from 4.2% in the same month last year.

Mining output saw a contraction of 0.2%, a stark contrast to the 6.8% growth recorded a year prior.

Power generation growth also diminished to 1% in April 2025, compared to a robust 10.2% in the previous year.

On a use-based classification, the capital goods sector witnessed a significant growth surge of 20.3% in April 2025, up from just 2.8% a year earlier.

Consumer durables, often referred to as white goods, experienced a growth of 6.4% during the month, although this was a decline from the 10.5% growth seen in April 2024.

In April 2025, the output of consumer non-durables fell by 1.7%, a slight improvement from a 2.5% decline a year ago.

Infrastructure and construction goods reported a growth of 4% in April 2025, down from an 8.5% increase in the same month last year.

The data further revealed that the output of primary goods contracted by 0.4% in April 2025, compared to a 7% growth a year earlier.

The intermediate goods segment saw an expansion of 4.1% in the reviewed month, up from 3.8% a year ago.