New Delhi, June 30: India’s Index of Industrial Production (IIP) recorded a modest year-on-year growth of 1.2% in May 2025, according to the Ministry of Statistics and Programme Implementation (MoSPI). While slower than April’s 2.7%, this growth highlights continued expansion in the manufacturing sector, which rose by 2.6%.
Manufacturing Keeps Momentum
The manufacturing sector contributed significantly, with 13 out of 23 industry groups showing positive growth. Notably, the manufacture of machinery and equipment surged by 11.8%, supported by rising production of pumps, separators, and non-vehicle engines.
Basic metals manufacturing climbed 6.4%, with robust outputs of MS ingots and alloy steel products. Non-metallic mineral products such as cement and glassware also posted a 6.9% increase.
- Mining: -0.1%
- Manufacturing: +2.6%
- Electricity: -5.8%
The general index for May stood at 156.6 compared to 154.7 in May 2024. Despite a fall in electricity output, manufacturing’s strength kept the overall index in the green.
Use-Based Classification: Mixed Signals
Capital goods and infrastructure-related segments led the use-based growth. Capital goods rose by 14.1%, and infrastructure/construction goods grew by 6.3%. However, primary goods and consumer non-durables saw contractions of -1.9% and -2.4%, respectively.
- Capital Goods: 120.1 (+14.1%)
- Infrastructure Goods: 198.1 (+6.3%)
- Intermediate Goods: 168.1 (+3.5%)
- Primary Goods: 157.9 (-1.9%)
- Consumer Durables: 129.3 (-0.7%)
- Consumer Non-Durables: 150.3 (-2.4%)
Top Performing Industries
The following industries led the growth charge in May 2025:
- Machinery and Equipment: +11.8%
- Electrical Equipment: +7.6%
- Motor Vehicles: +6.3%
- Basic Metals: +6.4%
- Non-Metallic Mineral Products: +6.9%
These gains align with the government’s push towards ‘Make in India’ and infrastructure-led growth strategies.
Challenges Ahead
The negative growth in electricity and primary goods signals possible supply-side disruptions or demand-side caution. Consumer goods contraction could reflect inflationary trends or shifting consumption patterns.
Looking Forward
The June 2025 IIP data will be released on July 28. Industry stakeholders and policymakers will closely monitor whether the growth seen in capital and infrastructure goods sustains, and if consumer demand rebounds.