Industrial Production in India Drops to 2.7% in April, Experts Describe Recovery as Uneven
India’s Industrial Output Moderates to 2.7% in April 2025
India’s industrial output slowed down to 2.7% in April 2025, a decrease from the 3.9% growth recorded in March. While manufacturing remained resilient, experts have pointed out weak consumption trends, concerns regarding capital expenditure, and global economic risks.
Machinery Production Boosts India’s Moderate Industrial Growth
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Industrial production in India expanded by a lower rate of 2.7% in April 2025, down from the revised 3.9% growth in March 2025, as per data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Wednesday. Despite the overall moderation, experts are optimistic about the performance, citing positive indicators in manufacturing and capital goods.
Manufacturing Shows Resilience, Consumer Sector Faces Challenges
Rajani Sinha, Chief Economist at CareEdge Ratings, highlighted that the manufacturing sector grew by 3.4%, supporting the overall industrial growth. However, while consumer durable goods saw encouraging growth, consumer non-durables remained weak for the third consecutive month. The uneven demand recovery in the domestic market is a key concern.
Capital Goods Output Surges, Global Economic Risks Loom
Capital goods output witnessed a notable surge of 20.3% in April, driven by a low base. Despite this positive development, experts cautioned about the lack of momentum in government capital expenditure. Concerns regarding global economic uncertainties, especially with trade tensions, continue to pose challenges for private investment and consumption.
Non-Core Sectors Display Resilience, Near-Term Risks Identified
Non-core sectors within the industrial output showed healthy growth, despite a decline in core sector performance. While manufacturing output remained subdued, strong double-digit growth in non-oil exports indicated potential round-tripping. Experts warn of near-term risks due to weather patterns and global tensions, emphasizing the importance of a normal monsoon for industrial growth in the fiscal year.
