India’s Index of Industrial Production (IIP) grew by 1.2 percent in May 2025 compared to the same month in the previous year, according to the Quick Estimates released by the Ministry of Statistics and Programme Implementation. This modest uptick was powered largely by a 2.6 percent growth in the manufacturing sector, which offset contractions in both mining and electricity output.
The IIP for May 2025 stood at 156.6, up from 154.7 in May 2024. Sector-wise, the manufacturing index rose to 154.3 from 150.4 in the same period last year, while the mining sector dipped slightly by 0.1 percent, settling at 136.3. Most notably, the electricity sector recorded a sharp decline of 5.8 percent, falling from 229.3 to 216.0 year-on-year.
Within manufacturing, 13 out of 23 industry groups (based on NIC-2008 classification) posted positive growth. The top three contributors included the manufacture of basic metals (6.4 percent growth), machinery and equipment not elsewhere classified (11.8 percent), and other non-metallic mineral products (6.9 percent). Notable items propelling these gains were MS blooms, billets, ingots, slabs, alloy steel flats, separators, decanter centrifuges, pumps, stationary combustion piston engines, cement products, and glassware.
Use-based classification data reflected mixed performance. Infrastructure and construction goods rose by 6.3 percent, capital goods surged 14.1 percent, and intermediate goods climbed 3.5 percent. On the flip side, primary goods dropped by 1.9 percent, while consumer durables and non-durables fell by 0.7 percent and 2.4 percent respectively. Among the primary contributors to overall IIP growth were capital, intermediate and infrastructure goods segments.
On a cumulative basis for April–May 2025, industrial production grew 1.8 percent, compared to a 5.7 percent expansion in the same period last year. The manufacturing sector grew 2.8 percent across the two months, while mining stagnated and electricity declined by 2.2 percent.
Detailed industry-level performance showed bright spots in pharmaceuticals, rubber and plastic products, electrical equipment, motor vehicles and transport equipment. However, printing and recorded media, furniture manufacturing, tobacco, and food and beverages saw contractions.
The report, compiled with an 89.5 percent weighted response rate for May 2025 and 93 percent for the final April 2025 data, underlines both progress in high-value sectors and stress in others, particularly power. The next IIP release, covering June 2025, is scheduled for 28 July 2025.
