Industrial Production Growth in India Falls to 2.7% in April 2025
India’s Industrial Production Growth Edges Down in April
India’s industrial production growth saw a slight decline, dropping to 2.7 percent in April from 3 percent the previous month, as reported by Reuters. According to the Ministry of Statistics and Programme Implementation (MoSPI), this figure reflects data released on Wednesday. In April 2024, industrial production had recorded a higher growth rate of 5.2 percent.
The National Statistics Office (NSO) also revised the industrial production growth for March, increasing it to 3.9 percent from an earlier estimate of 3 percent. Manufacturing, which holds the most significant weight in the Index of Industrial Production (IIP), improved to 3.4 percent in April compared to 3 percent in March. However, mining output experienced a decline of (-)0.2 percent, while electricity generation decreased to 1.1 percent in April, down from 6.3 percent in March.
In terms of the Quick Estimates of the IIP, the index stood at 152.0 for April 2025, up from 148.0 in April 2024. Specifically, the IIP indices for the Mining, Manufacturing, and Electricity sectors in April 2025 were reported at 130.6, 149.5, and 214.4 respectively. When assessed on a use-based classification, the indices recorded 151.6 for Primary Goods, 114.3 for Capital Goods, 164.2 for Intermediate Goods, and 191.6 for Infrastructure/Construction Goods for the same month. Consumer durables and non-durables had indices of 127.2 and 148.4, respectively. The year-on-year growth rates for IIP in April 2025 compared to April 2024 were (-)0.4 percent for Primary Goods, 20.3 percent for Capital Goods, 4.1 percent for Intermediate Goods, 4.0 percent for Infrastructure/Construction Goods, 6.4 percent for Consumer Durables, and (-)1.7 percent for Consumer Non-Durables.
The report highlighted that Capital Goods, Intermediate Goods, and Consumer Durables were the top three contributors to the growth of IIP in April 2025. Sankar Chakraborti, MD & CEO of Acuité Ratings & Research Limited, commented, “The IIP data for April 2025 provides a moderately optimistic start to the fiscal year, surpassing expectations with an overall growth of 2.7 percent year-on-year. This occurred despite underwhelming performance in the core sector, which constitutes over 40 percent of the index. The manufacturing sector was a pivotal force in this growth, expanding by 3.4 percent, fueled by significant increases in machinery and equipment (17.0 percent), motor vehicles (15.4 percent), and basic metals (4.9 percent). These positive trends indicate improving momentum in sectors linked to investment and transportation, suggesting a potential recovery in private capital expenditure.”
Looking to the future, Acuité Ratings noted that the path for industrial growth in FY26 will be influenced by the monsoon’s performance, especially given concerns over excessive rainfall in certain areas.
